The research aims to shed light on monetary policy and unemployment in Iraq by measuring the effects of monetary policy on unemployment rates based on monetary variables that represent the Iraqi monetary policy. The study proceeds from a hypothesis stating that the exchange rate of the Iraqi dinar, the money supply, and the interest rate have a positive impact on unemployment rates. The study employs a descriptive methodology to achieve the research objective and validate the hypothesis. The findings confirm that the mentioned variables have a positive effect on unemployment rates, as evidenced by the value of the adjusted coefficient of determination (Adjusted R²), which reached (0.84) in the short term. The study recommends reducing the interest rate on loans and encouraging investment to open new economic horizons, diversify income sources, create additional job opportunities, reduce unemployment rates, and achieve sustainable growth.