Subject and purpose of work: This article aims to analyze the relationship between inflation rates (INF) and unemployment rates (UR) in the Algerian economy during the period 1970-2021. Materials and methods: Investigate the extent to which the unemployment rate responds to shocks and structural changes in the inflation rate, using a structural VAR (SVAR) approach, based on Rstudio output. Results: The estimation results provide strong evidence in favor of the VAR (SVAR) approach. Conclusions: The application of Impulse–Response Functions (IRFs) and analysis of variance (ANOVA) reveals that the occurrence of a structural shock in the inflation rate (INF) by one standard deviation leads to a positive effect on the unemployment rate (UNEM) at the beginning of the first period, and then it gradually decreases to become almost nonexistent. Therefore, the improvement in CPI leads to the absorption and reduction of UR to achieve stability and confirm the existence of the Phillips curve.