NSSO defines unemployment as a situation in which all those who, owing to lack of work, are not working, but seek work either through the employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or express their willingness or availability for work under prevailing condition of work and remuneration.
Forms of unemployment:

1. Open unemployment refers to that situation wherein although the worker is willing to work and has the necessary ability to work yet he does not get work. He remains unemployed for full time and fails to get any work, casual or full time.
2. Disguised unemployment is typical of Indian agriculture where more people are working on a piece of farm than are required. They do not contribute to productive work and when withdrawn, do not result in a fall in output.
3. Seasonal unemployment is found primarily in the agriculture sector where people do not get work for all the months in the year due to the seasonal character of agriculture. During this time, they may move to urban areas in search of casual employment.

Economic consequences of unemployment:

1. Unemployed individuals have to go through a tight economic crunch. They are unable to meet their financial obligations. This may lead to a decline in their standard of living. Unemployment hampers the economic as well as the social status of people. The period lost in unemployment can never be compensated.
2. Underemployment is one of the serious consequences of unemployment. On losing jobs, people are forced to take up jobs that do not fit their skills, experience and educational qualification.