This study examines the relationship between unemployment and technological advancement in Yemeni manufacturing companies, focusing on three independent variables: Productivity Enhancement, Operational Efficiency, and Skill Requirement. The objective is to gain insights into factors influencing unemployment and their significance in explaining its variability.

The study employs various statistical analyses such as correlation analysis, multiple regression analysis, ANOVA, and t-tests to assess relationships among the variables. The findings reveal a moderate positive correlation between Technological Advancement and Unemployment, suggesting that as technological advancement increases, unemployment tends to rise moderately. However, further research is needed to establish a causal relationship.

The multiple regression analysis shows that approximately 23.4% of the variability in unemployment can be explained by the independent variables. Specifically, Productivity Enhancement and Skill Requirement exhibit a significant positive impact on unemployment, while Operational Efficiency does not have a statistically significant effect. The study highlights the importance of understanding the effect of technology on employment and recommends policies that ensure a balance between technological advancements and workforce sustainability to mitigate rising unemployment in the manufacturing sector.