Unemployment refers to the situation where individuals who are capable of working and are actively seeking jobs are unable to find employment. It is a critical economic indicator that reflects the health of an economy. High unemployment rates can lead to increased poverty and social issues, affecting not just individuals but entire communities. There are various types of unemployment, including cyclical, structural, and frictional. Each type has different causes and implications. For instance, cyclical unemployment occurs during economic downturns, while structural unemployment arises from changes in the economy that create a mismatch between skills and job requirements.