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Urbanization has brought multiple challenges before community to maintain sustainable development and social equity. It has forced mankind to adapt the current structural pattern in the process of globalisation. Social and economic participation is doubtful in a society loaded with traditional economic system and indigenous values. This paper discussed about the changes has taken place in economic pattern or livelihood due to urban growth and its impact on having native marginalised section living in north-eastern region of India. Based on NSSO, PLFS annual report from 2016-17 to 2020-21 on Urban Labour Force Participation rate in eight states of north-east, this study assess urban unemployment trends in north east. To address the livelihood challenges of urban vulnerable groups, this paper chooses DAY-NULM a popular scheme to create gainful self employment programme. Attempt has been made to highlight the achievements of this scheme in north east states based on secondary data collected from department websites. This study found result is satisfactory for few states, where DAY-NULM which is significantly implemented .However, It is also observed that the components of this flagship programme has not been implemented uniformly in this region. Therefore, this study recommended for collaborative urban planning particularly for coping livelihood strategies focused on local need based with assets creation in mission mode approach.