In this study, we test the hysteresis hypothesis in unemployment for Taiwan's 21 regional data sets using the Levin et al . (2002), Im et al . (2003) and Taylor and Sarno (1998) panel-based unit root tests for the June 1993 to September 2001 period. The results from all three tests provide evidence that based on Taiwan's regional unemployment data the hysteresis hypothesis can justifiably be rejected.