This study is primarily aimed at determining important demographic and socio-economic factorsrninfluencing unemployment in Addis Ababa. Cross sectional data were collected from 539rnhouseholds through systematic multistage sampling technique in which those members of thernhousehold aged 10 years and above were eligible for the study. The structured questionnaire andrnin-depth interview of key informants were used to collect the data. Univariate, bivariate andrnmultivariate analyses were made. The result has indicated that 57. 4% of the sample populationrnwas employed while 42.6% were currently not working. Among those currently not workingrnsample populations, 59% were available for work while 41% were not available to workrn(economically inactive). Hence, unemployment rate was found to be 30.01% and a considerablernvariation was observed between male and female. Male unemployment rate was 21.72% whilernthat offemale was 37. 54%. There were strong association between unemployment and sex, age,rnmarital status, migration status, relationship with the head of the household, educational levelrnand household income. Finally, the study calls for the government and other privaternorganizations for program intervention addressing the key factors that influence unemploymentrnin the city. Improving internship and related programs aiming at assisting, empowering,rndeveloping and preparing the recent matriculates who could not join Colleges or Universities,rnfor formal labour market jobs as well as self employment activities; promoting the developmentrnof micro enterprises along with provision of micro-loans for the purpose of expanding selfrnemployment by giving special attention to youth and households with low level of income; asrnfemale members of the households are more vulnerable to unemployment, efforts made by therngo vernment and other organizations to empower women should be filrther enhanced throughrneducation, skill building and micro-entefprise development .