Urban unemployment is characterised by the existence of both open unemployment, which in turn is an offshoot of rural unemployment itself, and the educated unemployment. Main causes of urban unemployment are insufficient economic development, defective system of education and slow growth of industrialisation.
Remedies to urban unemployment.
(i) Reform of the educational system to make it vocational at the school stage.
(ii) Concrete action will have to be taken to promote decentralisation and dispersal of industrial activity.
(iii) Promotion of small scale industries and encouragement to self-employment by banks.
(iv) Develop techniques of production that can be taken up with low capital intensity.
(v) Provision of infrastructure like railway, roads, hospital, school, etc. which will not only create employment opportunities but also contribute to known development.