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The unemployment rate in the Middle East and North African countries (MENA) is considered one of the highest among other regions, particularly among females. It is already known that the unemployment rate harms the GDP of many countries. However, it is unclear how the male/female unemployment rate affects GDP in MENA countries. Therefore, this study aimed to investigate the impact of the male/female unemployment rate on GDP in MENA countries based on Okun’s law. The study used the World Bank’s secondary data for total unemployment, female/male unemployment, gross domestic product, gross domestic product per capita, countries’ total consumption, imports, and exports. Moreover, the study estimated Okun’s law using the simple and multiple OLS regression statistical analysis on panel data for the time series period between 2011 and 2020. Results suggest that unemployment rates negatively affect the GDP of MENA countries, where female unemployment has a higher impact on GDP than male unemployment due to the high rate of female unemployment in the region. One percent increase in the female unemployment rate reduces the GDP and GDP per capita significantly more than the total and male unemployment rates. Such results support the findings by the OECD that MENA countries are expected to continue losing billions of dollars per year if they do not take gender equality into greater consideration. This could imply that females have a significant role in boosting economic productivity in MENA countries. The results of this study could provide insight into the use of Okun’s law to estimate the relationship between the unemployment rate and GDP in MENA countries, particularly as it relates to policy recommendations.
