Mofid University The Journal of Economic Studies and Policies 2423-4648 11 1 2025 01 20 Exchange Rate Volatility and Its Effect on Unemployment in the MENA Region Exchange Rate Volatility and Its Effect on Unemployment in the MENA Region 119 140 713124 10.22096/esp.2024.2001053.1713 FA Mohammad Abdi Seyyedkolaee Associate Professor, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran. 0000-0002-0528-7974 Mani Motameni Associate Professor, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran. Hananeh Mosleh Master's degree in Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran. Journal Article 2023 04 27 High unemployment rates are a significant challenge for many developing countries. Understanding the relationship between macroeconomic variables and unemployment is crucial for identifying the factors that influence unemployment levels. Among these variables, exchange rate fluctuations play a critical role, with their impact varying depending on the type of economy and currency system of each country. This research aims to empirically examine the effect of exchange rate volatility on unemployment in developing countries. Using data from the Middle East and North Africa (MENA) region from 1999 to 2021, the study employs the Panel Mean Group (PMG) method to measure exchange rate uncertainty and a panel data model to analyze its effect on unemployment. The findings indicate that exchange rate instability increases unemployment. Additionally, investment and economic growth negatively affect unemployment rates, while inflation positively affects unemployment. High unemployment rates are a significant challenge for many developing countries. Understanding the relationship between macroeconomic variables and unemployment is crucial for identifying the factors that influence unemployment levels. Among these variables, exchange rate fluctuations play a critical role, with their impact varying depending on the type of economy and currency system of each country. This research aims to empirically examine the effect of exchange rate volatility on unemployment in developing countries. Using data from the Middle East and North Africa (MENA) region from 1999 to 2021, the study employs the Panel Mean Group (PMG) method to measure exchange rate uncertainty and a panel data model to analyze its effect on unemployment. The findings indicate that exchange rate instability increases unemployment. Additionally, investment and economic growth negatively affect unemployment rates, while inflation positively affects unemployment. https://economic.mofidu.ac.ir/article_713124_ea8d881e93abd3bfe8efa2ea789b1e32.pdf