Abstract The purpose of this study was to critically examine the factors of youth unemployment on the socio economic impact in Sheema district. The study was based on three objectives; (i) to identify the factors of unemployment among youth in Sheema district; (ii) to assess the socio economic impact of youth in Sheema district; and (iii) to find out the relationship between youth unemployment and socio economic impact in Sheema district. The study employed cross-sectional research design and a sample size of 80 respondents were used for the study. In regard to factors of unemployment among youth in Sheema district, findings revealed that; majority 66.3% were males; majority 17.5% were both 23 and 26 years; in regard to education, majority respondents 26.3% were bachelor holders; in regard to employment, majority 55% of the respondents were not employed, majority 63.8% of youth preferred their jobs and 36.3% of youth respondents do not prefer their jobs because the income they receive from their jobs is less and cannot sustain their needs; and majority 45% got theirjobs through family members, 36.3% got theirjobs through their friends and only 18.8% got theirjobs though merit. In regard to socio economic impact of youth in Sheema district; majority 318% of youth respondents receive a daily income of 1,000 Ugandan shillings, However, 6 1.3% of youth respondents’ daily income received is not enough to meet their daily needs and these usually opt for practicing small farming like rearing goats and pigs; majority 77.5% go to hospital when they fall sick; 85% of youth respondents access health services from government hospitals; 71.3% do not go to school, 76.3% do not have school going children; 82.5% normally do savings monthly, 15% do savings weekly and 2.5% do savings daily. In regard to relationship between youth unemployment and socio economic impact in Sheema district; it was found out that there is no statistical significance impact between youth unemployment and socio economic impact in Sheema district. The study concluded that; Ugandan Government is clearly intensifying its efforts to create jobs, through various recent policy interventions such as the vision 2040. However, in these efforts, government has faced a challenging global environment, such as financial crisis, that has significantly hampered job creation. The fact that the unemployed youth continue to suffer other effects remain a major concern. These include low self esteem, turning to crime and alcohol abuse and ill health due to an inability to access proper healthcare. The study recommended that; ILO member states should place much emphasis on developing skills, education development and employment of youths; Government and other stakeholders should put up a strong accountability mechanism to ensure that the funds allocated to reducing youth unemployment in the country actually serve this purpose.
