In recent years, European energy markets have seen dramatic price surges which raise concerns over their macroeconomic implications. This thesis investigates the relationship between energy prices and unemployment in Sweden between 2014 and 2024. Using monthly time series data collected from the Swedish Central Bureau of Statistics and the Riksbank, this study estimates the effect of energy prices on unemployment using a standard OLS regression framework while controlling for underlying inflation, GDP and policy rate (by which we are referring to the interest rate set by the Swedish Riksbank). To ensure reliability, diagnostic tests in the form of ADF, Durbin-Watson, VIF, and Granger Causality tests are conducted. In order to address serial correlation, we employ Newey-West standard errors in our regression. The results reveal a statistically significant and positive relationship between energy prices and unemployment. The study also reveals a statistically significant relationship between underlying inflation, policy rates and unemployment. Overall, these findings suggest that supply-side price shocks may have a quantifiable effect on unemployment.