The unemployment found in villages is termed as rural unemployment. It includes the following types.
In India majority of the farmers depend on monsoon for cultivation, therefore one crop can be raised during a year. The rural agricultural labour gets job during this period i.e. 4-5 months and rest of the year they remain unemployed. This is known as seasonal unemployment.
It is the basic problem of underdeveloped and developing economies. It is a situation where more persons are working when less people are required. Therefore the marginal productivity of the surplus labour is zero. Eg - on a piece of land 4 workers are required to get and output of 20 quintals of rice, suppose on the same feild 6 workers are working and getting output of 20 quintals . The surplus 2 workers are working on the field but not adding anything in the output.
The unemployment which is found in town and cities it is termed as urban unemployment. It includes the following types.
When people are educated and willing to work but not getting jobsis called as eductaed unemployment. In urban areas so many educational institutions has come up. They provide mass education without making their students fit for any job. This type of employment is found in matriculates , undergraduates, graduates and post graduates.
In urban areas the factory owners prefer machines to workers, so as to be in a better position to compete . This is done to reduce the cost of production , increase the productivity of workers, and thereby increase profits. When new or superior technique of production or use of capital - intensive methods , which displaces the workers and results in technological unemployment. eg- introduction of computers in nationalised bank.
In this type of unemployment workers are temporarily out of work due to economic frictions . Unemployment due to breakdown of machines, shortage of raw materials, power failures, strikes etc. are some of the reasons for removing workers from job. In this case the workers become unemployed between the period of leaving and joining the new job.