The financial system is characterized as the most important subsystem of the economic system. In an economy, the financial system is a whole formed as a result of certain individuals and institutions, markets, instruments and organizations coming together to perform various functions together. Because the financial system is at the center of the fund transfer process that modern economies need most. The increasing share of the financial system in economic activities is expressed as financialization. Financialization, identified with the increase in the weight of the financial system at the international level, has become widespread with the use of financial instruments, whose numbers have increased with advances in information and communication technology. The growing trend of globalization from the 1970s to the present has led to the freedom of trade in goods and services, especially since the 1990s, as well as the freedom of financial markets. Developing countries with savings deficits have adopted a strategy of growing their economies through external savings by removing capital constraints. But it is believed that the process of increased financialization over the past 40 years has caused a number of disadvantages caused by unemployment and unemployment, especially in developing countries. E7 countries, which have come to the fore with their increasing share in world trade volume, high population and recent technological breakthroughs, are thought to become leading countries in the financial system as well as in the real sector. In this study, the effects of financialization on unemployment were examined through annual data of E7 countries for the period 1991- 2018. In the established econometric model, broad money supply (M3) was preferred as a control variable. Westerlund (2006) panel cointegration test which is taking into account cross-section dependence and heterogeneity and The Common Correlated Effects (CCE - common correlated effects) method developed by Pesaran (2006) one of the dynamic panel data analysis methods, was applied. The findings show that an increase in the share of the broad money supply in GDP in these countries increases the unemployment rate, but an increase in the share of domestic credit to the private sector in GDP reduces unemployment.