Dissertation (MA Development Studies)This study aimed at assessing the coping strategies to unemployment by university graduates in Tanzania: A Case of Dodoma Municipality.” The study used three specific objectives: to examine factors of unemployment in formal sector among university graduates in Dodoma Municipality to identify coping strategies to unemployment university graduates and To find out options for increasing informal employment to graduates. This study used a non - experimental cross – sectional survey design that allowed the use of questionnaire and interviews in which sample size of 60 respondents was used. The study selected respondents through the use of non- probability sampling technique in which the purposeful sampling was used to select key informants. Snowball sampling used to select unemployed university graduates. The research instrument included interviews and questionnaire. The factors for informal employment among university graduates were corruption employment, lack of skills and work experience. The coping strategies to university graduates unemployment were through practicing in informal activities and parental dependence. The conclusion from the findings was that, the employed university graduates need employment in working capital, government fund, bank credit and capacity building to join informal employment. The strategy for increasing informal employment among university graduates was to provide budget and offering business loans to university graduates. The study recommended to government, universities, and non- governmental organization to empower the university graduates through provision of work experience and financial resources to cope with unemployment.