Unemployment found in towns and cities is known as urban unemployment. 

The two types of urban unemployment are: 

(i) Educated unemployment: With the spread of education, the number of educated persons has increased. But when these educated persons do not find jobs, there is said to be educated unemployment. This type of unemployment is found among matriculates, undergraduates, graduates, and postgraduates. The casual approach to education; imbalance between job opportunities and the number of educated youth, Preference for white-collar jobs, lack of employable skills, lack of awareness about available educational opportunities are the main reasons for unemployment among educated youth in India. 

(ii) Industrial unemployment: It refers to unemployment in the industrial sector. The unemployed workers may be skilled or unskilled. This is generally in a form of open unemployment. Slow industrial growth, the rapid growth of population, lack of training facilities, low adaptability to modern technology, inconvenient location of industries, low mobility of labour, etc. are the main reason for industrial unemployment. Industrial unemployment can be further classified into- 

• Technological unemployment 
• Frictional unemployment 
• Cyclical unemployment 
• Structural unemployment.