Abstract
This study aims to examine the level of development of some macroeconomic variables in Iraq and measure the impact of these variables on unemployment rates using a descriptive and quantitative approach. To achieve the study's objective, a specific time period from 2004 to 2021 was adopted. The Autoregressive Distributed Lag (ARDL) model was used to estimate the short-term relationship and measure the bounds of co-integration using the Bounds Test. The study considered the automatic distributed lag periods between macroeconomic variables, including exchange rates, monetary base, gross domestic product, and public expenditures, and unemployment rates. The study also estimated the long-term relationship based on the parameters in the long run.The study assumes the existence of varying levels of impact of macroeconomic variables on unemployment. The results indicate a long-term relationship between macroeconomic variables and the unemployment rate. Exchange rates, monetary base, and gross domestic product have a negative impact on unemployment, while public expenditures have a positive impact. The important recommendations include building a balanced economy that gradually moves away from reliance on oil resources and aims to diversify the production base to meet domestic and external demand, which can only be achieved through a transition to a market economy.
