ABSTRACT This study established the relationship between unemployment and poverty among the people of Puntland in Somalia. To achieve the research purpose, the following research objectives were formulat~: to assess the level of unemployment among the people in Puntland, Somalia; to examine the level of poverty among the people in Puntland, Somalia; to establish whether there is any significant relationship between unemployment and poverty among the people in Puntland, Somalia. Descriptive correlation design was employed in this study; the sample size was 106 and these were sampled from a total population of 145. Systematic random sampling was used to select different categories of respondents. The data collection instruments used included the questionnaire and interview guide. The validity and reliability of the research instruments were determined using content validity index and pretesting. The data collected about the variables was coded and Statistical Package for Social Scientists (SPSS) was used for data entry and analysis. Mean ranges and standard deviations were used for the items that significantly measured the study variables, Pearson’ correlation and regression coefficient were used to establish the relationships between unemployment and the poverty among people in Puntland. The study findings indicated the level of unemployment among the people in Puntland is high (2.30 and standard deviation of .80); the level of poverty among the people of Puntland is also high (overall mean average of 2.42 and standard deviation of.82); and finally, the study found out that there is a positive, strong and significant relationship between unemployrnejit and the level of poverty among people in Puntland, Somalia. This finding is indicated in the r. value of 0.676 and significant value of 0.000. Based on the research findings, the following recommendations have been made: the ministry of Agriculture and Tourism Development together with the Ministry of Finance and Economic Planning should design strategies lead to revitalization of agriculture so as to provide employment opportunities; the central government together with the local government should look into ways of attracting Foreign Direct Investment as a way of fighting unemployment as well as poverty among the people of Puntland. This can be done through by giving tax holidays and tax exemption among other methods; the government should also encourage universal technical education besides universal secondary education and universal primary education in Somalia; the government together with the opposition parties should engage themselves into negotiations and dialogue such that political instability can be achieved in the country for better socio-economic development and attract foreign investors as well as local investors.