This policy brief examines the evolving landscape of unemployment in Ethiopia, highlighting critical trends and disparities from 1999 to 2021. Despite a decline in the overall unemployment rate over the past decades, recent data reveals a troubling increase, particularly in urban areas and among women and youth. The brief underscores the persistent imbalance between labor supply and job creation, exacerbated by factors such as underemployment and skill mismatches. It explores the role of economic growth, sectoral contributions, and policy responses, emphasizing the need for comprehensive strategies to enhance employment opportunities.