Youth unemployment is one of the most critical issues at global level and more precarious in developing economies like Ethiopia. The study area (Central Gondar Zone) is one of the least performing zones in creating job opportunities for youths. Therefore the main objective of this study is to identify the determinants of urban youths’ unemployment in Central Gondar zone. The study was conducted by selecting three towns as a sample such as Gondar, Aykol, and Tikil dingay. The study employed more of primary data obtained from 400 sampled respondents of which 195 were employed while 205 were unemployed youths. The study employed both the bi varitate and multivariate analysis techniques to examine the association between the employment status of urban youths and the determinant factors. For the bi variate analysis the study employed the chi2 test statistics and cross tabulation techniques. And a multivariate analysis was done by using the binary and multinomial logit regression model. The binary logit model inferred that age, sex, job preference, work experience, access for credit, job training, marital status, social network density, education level of youths, and education level of household head, poverty status of household, migration status and household size were found to have a significant impact on urban youth’s unemployment. The multinomial logit model was employed to determine factors that affect self-employment. Hence the model illustrated that sex, age, and work experience, family poverty status, access for formal credit, access for job training, education and job preference are significant factors to influence self-employment. Besides, the study also tried to assess the trend of urban youth’s unemployment in the study area and found an increasing pattern of unemployment over time. The study pointed out the need for policy that focuses on gender sensitive urban-center employment initiatives to improve the employability of the youth. It also recommended the improvement in access for credit, enhancing access for job trainings, improvement in social networks and educational qualification to reduce youth’s unemployment. Study points out that government must work more on enhancing the public and private labor market information and educational structure based on the labor demand of the economy. The researcher also recommended the government to solve the issue of youth’s migration to the urban areas to minimize their exposure for unemployment.