The study is on the rate of Unemployment in Nigeria as a result of the failure of Public Enterprises. The objective of the study therefore is to identify the impact Public Enterprises failure had on Unemployment rate in Nigeria. This was achieved through the analysis of secondary sources of data and other documentary evidences on the issues. The study discovered that the failure of Public Enterprises in Nigeria had contributed immensely to the Unemployment rate. Conclusively, the Privatization of Public Enterprises in Nigeria had led to massive loss of jobs due to lack of stable trade unions that will negotiate workers disengagement or exit in accordance with the law. The study therefore recommended that in order to provide employment to the unemployed in Nigeria, Public Enterprises should be revamped and managed in the spirits of State Capitalism or purely on full commercialization basis.