The Effect of Relative Prices and Total Factor Productivity on Unemployment Rate of Iran's Economy

One of the major concerns in developing programs is to reduce unemployment rates. This means that efforts to reduce unemployment as one of the objectives of economic policymakers. Based on theoretical and experimental studies of relative prices and total factor productivity growth on unemployment is a determinant role. Therefore, the present study is statistical analysis effect of relative price factors (interest rates, wage rates) and total factor productivity growth on unemployment rate during the economic development of economic, social and cultural Islamic Republic of Iran (1386-1368). The results of indirect communication between total factor productivity growth rate with the unemployment rate. Also, the result can be stated macroeconomic policies are offset relative prices of production factors in favor of diverting the relative prices of production factors physical capital (especially imported) and to the detriment of other factors of production, especially labor and increasing unemployment. So in order to increase the growth rate of total factor productivity and reduce unemployment rate and movement of capital and resource-based economy to a knowledge based economy is necessary Orientation macroeconomic policies (exchange rate, trade, fiscal and monetary) in order to modify the relative price factors in favor of labor and knowledge components.