This paper focuses on the theories of unemployment. Firm’s demands labour for the production of goods and services. And for this labour gets wage payments. In the labour market the market is in equilibrium when demand of labour is equal to the supply of labour and that will determined the equilibrium wage rate. Peoples are willing to supply more labour at higher wage rate but the firms are demanded less labour at higher wage rate. So there is a positive relationship between wage rate and supply of labour. The relationship between the wage rate and labour demanded is negative. Since as we know that all the labour force have not jobs at prevailing wage rate. So some portion of labour force has not get employed at a particular time. There are so many theories on the unemployment which is discussed in this paper.