The tip clearance of rotor blades is one of the important factors to be more investigated, because the rotating stall inception originates at a tip leakage flow region in most of axial flow compressors. However, the effect of the tip clearance on unsteady flow field at near-stall condition has not been investigated in detail. In the present work, the unsteady flow phenomena in a low-speed axial flow compressor stage with the large and small tip clearances at near-stall condition have been investigated numerically by URANS (Unsteady Reynolds-averaged Navier-Stokes) simulations. The results show the clear difference caused by the effect of the tip clearance on the flow field at near-stall condition. Namely, the occurrence of separation at the blade suction surface induced instability for small tip clearance, while the occurrence of tip leakage vortex breakdown induced instability for large tip clearance.