Rural youth in Pakistan play very significant character in the political, economic, rural development and social change. The research work is the socio-psychological effects on rural development in the aspect of unemployment on the personality of jobless youth in Tehsil Jaranwala, District Faisalabad-Pakistan. A multistage sampling technique was applied for data collection. At the 2nd stage, two union councils were randomly selected from selected tehsil and at the 3rd stage; two villages were randomly selected from selected union councils. Total numbers of 120 respondents were interviewed from different villages. Descriptive and inferential statistics were used to analyze the data for drawing conclusion(s). Majority of the respondents agreed that unemployment leads to poor mental health, drug addiction, corruption, rural development, crime, dishonesty, depression and anxiety. A highly significant association was found between family income of the respondents and psychological impact of unemployment. Key words: Unemployment, rural development, Pakistan.
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