The correct answer is Structural Unemployment. Explanation & Key Takeaways: • Unemployment occurs when a person who is actively searching for employment is unable to find work. • Unemployment is often used as a measure of the health of the economy. The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force. • National Sample Survey Organization (NSSO) defines employment and unemployment on the following activity statuses of an individual: • Working (engaged in an economic activity) i.e., 'Employed'. • Seeking or available for work i.e., 'Unemployed'. • Neither seeking nor available for work. • Unemployment rate = (Unemployed Workers / Total labour force) × 100 • Types of Unemployment in India: • Disguised Unemployment: • It is a phenomenon wherein more people are employed than actually needed. • It is primarily traced in the agricultural and the unorganized sectors of India. • Seasonal Unemployment: • It is unemployment that occurs during certain seasons of the year. • Agricultural labourers in India rarely have work throughout the year. • Structural Unemployment: • It is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market. • Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them. • Cyclical Unemployment: • It is a result of the business cycle, where unemployment rises during recessions and declines with economic growth. • Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies. • Technological Unemployment: It is a loss of jobs due to changes in technology. • Frictional Unemployment: • Frictional Unemployment, also called Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs. • In other words, an employee requires time for searching for a new job or shifting from the existing to a new job, this inevitable time delay causes frictional unemployment. It is often considered voluntary unemployment because it is not caused due to the shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities. • Vulnerable Employment: • This means, people working informally, without proper job contracts and thus sans any legal protection. These people are deemed ‘unemployed’ since records of their work are never maintained. • It is one of the main types of unemployment in India.