Simultaneous Evaluation of Major stock Market Variables and Unemployment: Case of Iran's Manufacturing Sector

The capital market, as one of the active financial institutions in economies, has a prominent role in fostering economic growth, investment, job creation and business creation. With the changes in the capital market, variables such as unemployment, t, exchange rates, and so on can change. Given this importance, this study evaluates and analyzes the relationship between major stock market variables and Iran's unemployment rate with an emphasis on industry over the period 1996 to 2017 seasonally using the VECM method. The results showed that stock price shocks, industry index, financial index, number of traded shares and transaction value were explaining 0.362, 5.222, 4.946, 5.760 and 5/466 the percentage of Uemployment changes in Iran.