What do you mean by unemployment? What types of unemployment are found in rural and urban areas of India? Briefly explain.


Unemployment is a situation under which those who are willing and capable to work, do not get work. Following are the types of unemployment found in rural and urban areas of India:

(i) Open Unemployment - It refers to that situation wherein the worker is willing to work and he has the necessary ability to work, yet he does not get work. He remains unemployed for full time.

(ii) Seasonal Unemployment - It occurs in the case of agriculture, ice-cream factories, woollen factories, etc which are a seasonal occupation. They have busy and slack seasons. In the offseason, there is no work. The result is seasonal unemployment.

(iii) Disguised Unemployment - It is when marginal physical productivity of labour is zero or sometimes it becomes negative. An individual is working but he is unable to add to the productivity or to the output.

(iv) Industrial Unemployment - It includes those illiterate persons who are willing to work in industries, mining, transport, trade and construction activities, etc. The problem of unemployment in the industrial sector has become acute because of the increasing migration of rural people to urban industrial areas in search of employment.

(v) Educated Unemployment - In India, the problem of unemployment among educated people is also quite grave. It is a problem spread across all parts of the country because of massive expansion in the education facilities. These facilities contributed to the growth of educated persons who are on the lookout for white collar jobs.

(vi) Technological Unemployment - Technological upgradation is taking place in all spheres of activity. People who have not updated their skills as per the latest technology become technologically unemployed.

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