Abstract.Recent studies on the causes that bring about the increase in unemployment rates of theMezzogiornoarea and Italy are mainly based upon demographic and social causes. The aim of this study is to verify if they can be also influenced by economic factors. Through a dynamic model with partial adaptive hypothesis, some ways by which demand affects the differences of regional unemployment rates has been tested. In this respect it has been considered whether variations in economic activity can lead to different growth rates of regional production owing to the different industrial structures; whether the employers are influenced by local factors in varying the occupation when the production increases, and finally in which way the regional unemployment rate depends on the excess of desired, over effective, labour demand.Data base are from 1959 to 1976, and the unemployment rate is referred only to unemployed workers that is the better proxy of the unemployment connected with the economic cycle. The results show a slight reactiveness to demand, both in industrial labour demand and supply in theMezzogiorno.