Objectives: The youth unemployment issue is one of the most important issues in country’s macro planning. Although the youth unemployment rate is available through labour force survey but the youth employment challenge and issues they suffer in their first entry into the labour market, finding and maintaining decent jobs, can not be studied through results of mentioned surveys. For gathering above information, International Labour Organization has designed the School-to-Work Transition Survey (SWTS). The results of this survey helps countries improve their youth employment policy and planning. Method: For discovering the issues that country’s young suffer for entrance to the labour market, SWTS has carried out in 3 selected provinces of the country in 2005 with probability sampling scheme and 2925 sample households. Findings: Based on survey results, the most important barriers of the youth successful transition are as follows: - Around one third of the youth have stated self-employment as their preferable employment status. Since the self-employment share in the country’s economy has had a descending trend and the unpaid family worker share an ascending trend over the recent years, another problem appears in the youth employment. - The country’s disorganized labour market and the weak role of the recruitment and place of education institutions have caused most of youth to be seeking for work informally, enjoying limited of work options consequently. For this reason, a great percent of the economically active youth (employed or unemployed) have stated not having a reference as one of obstacles in finding a job and only a small percent of the youth have been seeking for work through recruitment and place of education institutions. The most important obstacle in finding a job from the attitude of the most of the economically active youth is the limited number of job opportunities caused by the labour force supply surplus, mainly due to the high population growth rate in the 1978-88 decade and shortage of labour force demand. Moreover, the participation rate has increased as a result of increase in the youth educational level that has been more sensible in the female youth. - In the opinion of many economically active youths the educations and trainings received, may not facilitate their access to employment. Also, most employers have considered the youths’ educational and training level and their ability in applying the instructions to the working environment, relatively weak. This problem arises from the lack of interaction between educational institutions and labour market that may not include the labour market needs in the country’s educational system contents. In addition, such an interaction could considerably increase the role of the educational institutions in keeping the youth informed of available job opportunities. - In opinion of more than half of the youth, there is sex discrimination in employment promotion in the labour market. Also, since the absolute majority of employers prefer to hire males, inequality of job opportunities for males and females really exists at least in the private sector wage and salary earning employment. - Considering the fact that the great majority of the self-employed youths depend on their households’ financial support or their own savings for starting their business, it is certain that the youths from the low-income households would face more problems in their transition and the self-employment is the choice only for the youths from wealthy households. - The youth with higher education has experienced easier transition than the youth with lower secondary educations and high school. Therefore, the youths’ failure in their admittance to the university is an obstacle to access the easy transition. Also, the mismatch between the limited university admittance in various fields and specializations required by the labour market, prevents the more successful transition of the young university graduates