Abstract: Youth Unemployment is one of the most critical issues at global level. It represents the underutilization of scarce and precious resources, that would be important for nations� socio-economic development. This study deals with identifying the main factors responsible for youth unemployment and constraints they face in self-employment in Ethiopia. It is based on the cross sectional data collected by Central Statistical Agency (CSA) in 2015. From all regions of the country, a total of 16,984 samples are considered for analysis. Using descriptive and cross tabulation analysis, the study shows that youth unemployment is highly related with regional location, sex, marital status and education. The analysis also shows youths� dream to create their own job is constrained highly by shortage of finance and lack of work place. The government and others stakeholders need to consider the above determinants and challenges for future intervention.