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This paper analyzes the determinants of unemployment in Panama using a structural equation model (SEM) approach, using data from the Household Survey of the National Institute of Statistics and Census (INEC). The main objective is to evaluate the extent to which the demographic structure of the labor market and the degree of formal employment influence the unemployment rate, considering economic growth as a control variable. The results indicate that unemployment is more influenced by structural factors, especially demographic factors, than by temporary labor market conditions. The study suggests the need for public policies aimed at improving the employability of young people, women, and low-skilled and semi-skilled workers, as well as complementing efforts in economic policies aimed at achieving economic growth.