Unemployment is a state of joblessness in an economy and is usually measured in terms of unemployment rate. The unemployment rate can be calculated by diving the number of unemployed by total number of employed. Unemployment is a major problem in many countries, especially India. There are many reasons for this. Generally unemployment will be caused when the economy slows down and the companies will be forced to cut costs by reducing payroll expenses. Unemployment is caused by an imbalance between supply and demand of working hours. According to statistics, for each employed person there are six jobless looking for work and this statistics doesn’t include those who gave up and stopped looking.