Unemployment, especially among youth, poses a significant macroeconomic challenge in Ethiopia. This study investigates the root causes of youth unemployment in the Gurage Zone using a mixed-methods approach that combines descriptive and explanatory designs with both qualitative and quantitative analyses. Data were collected from 417 youth using a multi-stage sampling technique, resulting in 400 completed questionnaires. The analysis revealed that factors such as sex, age, migration status, educational attainment, and access to credit and training influence youth unemployment. Structural factors, including inflation, declining investment, political instability, skill mismatches, and inadequate education, were also identified as key contributors. The study recommends improving education, increasing investment in agriculture, enhancing political stability, expanding access to credit, and promoting self-employment initiatives. Key sectors for youth employment include farming, cobblestone production, dairy, meat production, and irrigation. Targeted support from governmental and non-governmental organizations in these areas could reduce unemployment and foster regional development.
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