Urban employment is the one which is found in cities and towns. In other words, unemployment found in urban areas is known as urban unemployment. It is categorized into three main types as follows.
1. Technological unemployment: In urban areas the industrial sector constantly prefers to upgrade the technology and machinery used. In the process the workers that are not familiar with the new technology get displaced. Moreover, many a times the technology used is such that it substitutes the labour. Thereby, leading to unemployment.
2. Frictional unemployment: It refers to a situation where an individual temporarily remains unemployed due to such reasons as searching for a new job, strikes, technical breakdowns.
3. Educated unemployment: It refers to a situation wherein an individual who is educated and capable to work is not able to find work. Such an unemployment mainly arises due to defective educated system and low quality of education. Often in urban areas although a large number of educational institutions come up the qualiy of education provided by them is not suitable as per the job requirements, thereby, leading to unemployment.