The review of existing related-monitoring systems, decentralization policies and administration structures at the local level which was conducted by Muro et al (2006) aimed for the development of a comprehensive Municipal information system, that covered municipal, ward and village level, produced a report and analyses that facilitate good planning and decision making. However, the community based monitoring system developed and pilot tested in Dodoma, Tanzania by Muro et al (2006) has not been specific on youth unemployment and the vulnerability likely to be influenced by unemployment. This study intends to replicate the CBMS methodology to other parts (Muleba District Council) of Tanzania and examine the linkages between youth unemployment and vulnerability using CBMS data. A community-based monitoring system entails the participation of people in the community to collect process and use data. The system will provide information on the socio-economic welfare conditions of all members of the community. As the CBMS suggests participatory development planning –information generated by the system is aimed to be utilized in the regular functions of the local government authorities. This approach will facilitate establishing a nationwide statistical system starting at the grassroots