The increase in the young population due to demographic dividends or the rise in young people seems to be one of the sources of future economic growth in India. Although with the increase in school and college enrolment rates, the proportion of youth in the labor force has been declining their high proportions in the labor force indicate that the problem of youth unemployment and underemployment would remain a serious policy issue for many more years to come in India. During the last two & half decades, from 1983 to 2007-2008, it analyses labor and workforce participation rate trends. Unemployment, joblessness, working poor, growth and employment elasticities, etc. the poor employability of the workforce would hamper the advantages due to demographic dividend if measures are not taken to improve the educational attainment and skill development of the youth. The present paper has focused on the causes of unemployment, various types of unemployment, and possible measures have been suggested.