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This study examined how demographic factors and unemployment affect the mental health of youths in Southeast Nigeria. Data were collected across the five states in the region; from 160 participants, with half of them unemployed and the other half employed. Theage range of the participants ranged from 15 – 29 years, with a mean of 22.40 and a standard deviation of 3.39; while the mean for gender was 63 with a standard deviation of 0.49. A purposive sampling technique was adapted for the study, and the Symptom Distress Checklist 90 (SCL-90) was used to assess the mental health of the participants. The data were analysed with t-tests and multiple regression analysis. The study found that unemployed youths had higher levels of psychological distress compared to their employed counterparts (M = 182.91, SD = 47.10; t (399) = 11.10, p < .001). Age (β = -1.36, p > .05), gender (β = -.76, p > .05), length of unemployment (β = .81, p > .05), and education level (β = .64, p > .05) did not significantly predict mental health problems. However, when looking at gender differences, unemployed males experienced more distress (M = 203.48, SD = 26.35) than unemployed females (M = 147.90, SD = 33.84; t (199) = 18.84, p < .001). These findings emphasize the need for mental health support and policies targeting unemployed youths in the region.