The study is designed to identify the basic causes of unemployment among the educated segments in Peshawar Division of Pakistan. A sample having 442 individuals belongs to Peshawar Division and having least first degree (graduation degree) or capable of any professional/technical job whether they are employed or unemployed. This paper is an attempt to determine important factors effecting unemployment among the educated segments. Logistic regression was used for this purpose. The final model concludes that HP, LR, HP*RL, HP*NE.J, NE.J*RB*RL (annexure-1: abbreviations) are important determinants of unemployment rate in Peshawar Division. Our analysis shows that there is 69.6% of the males and 30.4% females are educated and unemployed and thus the percentage of overall employment is comparatively low than developed countries. The backward elimination procedure with the initial model fitted by Brown method have revealed that high growth of population (HP), lack of resources (LR) are the main effects and HP*RL, HP*NE.J, NE.J*RB*RL are the interaction effects that significantly causing unemployment among the educated segments.