Unemployment estimates on Afghanistan by various organizations widely varied, between 3.4% by C.S.O, and ADB for years 2000 to 2004, and 40% by ANDS for 2008. C.S.O continued to use the same LFPR as observed in 1979 Population Census to estimate Afghanistan‘s labor force for later years. Over the last 3 decades, however, Afghanistan went through more than two decades of devastating war causing massive dislocation of population, and half a decade of Taliban rule that debarred women to work outside their homes, which significantly influenced LFPR. The economic system also changed from that of centralized planning under socialism, to that of market economy, with changing roles of government. All these developments had profound implications for labor market outcomes for Afghanistan. Since the poor cannot afford the luxury of remaining unemployed for too long, open unemployment rate for Afghanistan might remain low, but underemployment in terms of time, income and recognition dimension significantly increased over the recent past as growth in output and employment, particularly in the formal sector fell far short of growth in labor force. A comprehensive labor force survey needs to be implemented as soon as possible to generate data on LFPR, employment status, and multiple dimensions of employment to serve as a basis for an appropriate employment policy and strategy for Afghanistan.