Unemployment is a situation in which a person between the age group of 15 to 59 years, who is willing and able to work at the prevailing wage but not getting any job. Hence it is a situation of scarcity of jobs, where the supply of labour is more than its demand.

Concepts of Unemployment: 

• Involuntary unemployment: It refers to a situation when people are able and willing to work but there is no work for them due to excess of labour force in relation to demand labour it is also known as visible or open unemployment. Such unemployment is found in both rural and urban areas. 
• Voluntary unemployment: This is not really unemployment, it is “idleness”. It is a type of unemployment where a person is fit to work but not willing to work. E.g. Rich people not willing to work or beggars who are not ready to work or educated people waiting for white-collared jobs. 
• Underemployment: It is a situation where a person’s capacity to work is not fully utilized with respect to time, energy, or education. E.g: a CA working as a clerk, or a person who is ready to work full time gets a part-time job.
• Full employment: It is a situation where all the available resources in an economy are used to their optimum level.