The aim of this study is to analyze the reasons of unemployment disparities among 26 NUTS-2 regions in Turkey for the period 2004-2013. To that end, spatial panel econometrics is employed. It is empirically proven that the determinants of the regional unemployment disparities are labor force participation rate, young population, industrial mix and educational attainment. Further, it is detected that there is a spatial dependence (spatial autocorrelation) among the regions. In other words, it is discovered that an increase in unemployment rate in a region also affects the unemployment rates of neighboring regions. Spillover effects of independent variables are also estimated. Hereby, the impacts of factors, which determine unemployment in a region, both on that region and neighboring regions are obtained individually.