A car bomb was detonated beside people queuing to enrol in the police force, police officials said.
Witnesses said the blast was heard across the city and a large plume of smoke was seen.
Yemen has been unstable since protests in 2011 forced then-President Ali Abdullah Saleh from office.
Photographs at the scene of Wednesday's explosion showed the wreckage of a vehicle. Bodies were seen lying in the street, witnesses said.
Local journalist Nasser Arrabyee told the BBC that a suicide bomber drove his car into the queue of students, who had come from all over the country for the fourth and busiest day of the recruitment drive.
Mr Arrabyee said that police estimated that as many as 40 people had been killed and 100 injured.
Source: BBC
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