The level of unemployment or employment in the economy is among the important macroeconomic variables. The high employment level of the labour force is important for the welfare of the society. The unemployment rate can become an important economic and political problem at the individual and social level. On the other hand, understanding whether the effects of economic crises on the unemployment rate will be permanent or temporary affects significantly the designs and components of the economic policies to be implemented. Correct determination of the causes and consequences of unemployment and correct design of policies for its solution are critical in terms of sustainable economic growth and social welfare.In this context, the main purpose of this study is to examine empirically whether there is a hysteria effect on the unemployment rate in Central and Eastern European Countries. In this framework, the existence of hysteria effect on the unemployment rate was investigated by using panel data analysis for the unemployment rate variable in the 1996-2019 period for Central and Eastern European Countries. According to the findings, the presence of hysteria effect in the unemployment rate variable for countries other than Poland, Slovenia and Estonia and the panel of Central and Eastern European Countries has been determined. According to these results, it is concluded that shocks have permanent effects on the unemployment rate variable for countries other than Poland, Slovenia and Estonia and for the panel of Central and Eastern European Countries