This thesis investigates do level of education, labor market inequilibrium and government policies affect China’s youth unemployment problem. This literature study begins with introducing the definitions of unemployment and youth, while comparing the differences between general unemployment and youth unemployment. Then organize, research and analyze relevant literature to conduct primary analysis and draw preliminary conclusions. Then collect, organize, secondary analysis of relevant data and perform regression analysis on relevant questionnaire results. Finally, the impact of level of education, labor market inequilibrium and government policies on youth unemployment in China is discussed and analyzed.