“A Dissertation to be submitted to the Faculty of Social Science in partial fulfilment of the requirements for the award of the Bachelor of Science in Economics of Mzumbe University”.The major objective of the study was to identify the dominant factors influencing youth unemployment in the agro-processing industrial sector. The study included the sample size of 53 youths from Shinyanga Municipal council. Statistical packages like SPSS, STATA and Microsoft Excel were used for management of statistical data whereby probit regression model were used to regress the data to obtain results on the variables included in the study. The findings from the used probit model point out that gender, age, marital status, firm regulations and freedom to work are influencing youths to engage in the agro-processing industrial sector. The findings also reveal the social-economic factor hinders youth unemployment in the agro-processing industrial sector such as lack of sufficient capital, poor production line, lack of education (Vocational training), low productivity, seasonal unemployment, low salary and wages, the existence of advanced technology and poor management skills lead to the collapse of many of industry, lack of capital lead to downsizing of employees in the firm and low salaries and wages paid to labours. Therefore according to the results, the following were recommended such as the improvement of rules and regulations that will help youths to have proper education with technical skills that will help them to be employable in agro-processing firms, restructuring the production line of crops from farmers to reduce forgery and loss to the firms, to create awareness on the international market that will help local firms to expand their trade hence reduce the unemployment to the youths in the labour market. There should be regulations and rules that first will emphasize skills to youths that will equip them with capacity like technical, marketing and management skills to youths who will be employed in agro-processing firms because education has found to be among the variable that does not influence youths to be employed in the firms this may create inefficiency and poor performance of our agro-processing industrial sector when it comes to the international competition. Second the authorities responsible with agriculture should restructure the modes of harvesting and to improve the modes of sales to the firms this will help to protect the value of the agro-products, to avoid forgery by farmers like putting of impurities that will create loss to the firms by providing proper education to farmers on how to create profit in a good and right way rather than stilling also financial support to small scale firms that will help them to improve their production activities and pay salaries to employed labours.