Unemployment in towns and cities is referred to as urban unemployment. The following are its main causes.
a. Lack of infrastructure- Infrastructural inadequacy impedes industrial growth. Low industrial growth rate, in turn, obstructs the generation of employment opportunities in a country.
b. Low economic growth- With low growth and development, India is unable to absorb the growing manpower in the country. This in turn increases unemployment.
c. Rural-urban migration- A large number of rural people migrate to towns in the search for employment opportunities. This increases the number of labourers willing to work in contrast to the jobs available. Thus, increasing unemployment.