Abstract. This research explores the intricate relationship between macroeconomic instruments and unemployment trends, focusing on the influence of income tax rates, foreign direct investment (FDI) growth, and government expenditure growth. Employing a comprehensive quantitative analysis, this study examines data from 30 countries spanning the years 2018 to 2022. The methodology integrates multiple linear regression analysis to dissect the impact of these macroeconomic variables on unemployment rates. The findings reveal that income tax rates significantly affect labor market dynamics, with higher rates often correlating with increased unemployment. Conversely, FDI growth demonstrates a robust capacity to enhance employment opportunities, particularly in emerging markets. Government expenditure growth, particularly in infrastructure and public services, is shown to reduce unemployment rates, though the efficacy varies across different economic contexts. This research contributes to the existing literature by providing nuanced insights into how specific macroeconomic policies can be optimized to foster more resilient and inclusive labor markets. The implications of these findings are vital for policymakers aiming to design targeted strategies that effectively address unemployment in diverse economic environments.