On the basis that the manpower dividend will be enjoyed by the economy, successive governments in Nigeria have invested on education, yet over the years, the economy has not been able to absorb majority of its output. What could be termed `unemployment’ has now reached a level where parents, government, institutions’ administrators and other education stakeholders are worried. In this paper, the issue of unemployment of majority of outputs from the educational system in Nigeria is examined, with particular focus on its causes and consequences.