Abstract: The aim of this study was to examine factors influencing utilization of development resources for youth. Specifically, the study aimed at identifying the resources available for youth employment, to determine socio- economic factors influencing youth employment and to find out how the youths utilize the resources available in Old Majengo Mtaa in Babati District. The collected data from 103 respondents were analysed using Statistical Package for Social Sciences (SPSS). Principal Component Analysis (PCA) examined the mostly likely factors influencing youth in utilizing development resources while multiple response frequencies and percentages were used to assess the development resources available and how youth utilize the development resources in the study area. PCA revealed that, access to land was the major factor contributing to youth unemployment with Eigen value of 1.586 followed by low level of education in the study area with Eigen value of 1.140. Apparently, by- laws and regulations made by the council and inadequate credit and savings opportunities were also among the factors influencing youth unemployment in the study area especially on self-employment. Therefore, it is recommended that education systems should be geared towards inculcating an entrepreneurial spirit among youth. The district in collaboration with development partners should provide vocation training and technical skills for youth. In addition, the government should establishment good environment for resource utilization through public private partnership.