The correct answer is Cyclical Unemployment. Explanation & Key Takeaways: Types of Unemployment in India: • Cyclical Unemployment: • Unemployment is caused due to the business cycle, where the number of unemployed heads rises during recessions and declines with the growth of the economy. • Cyclical unemployment figures in India are negligible. • Seasonal Unemployment: • That situation of unemployment when people do not have work during certain seasons of the year such as labourers in India rarely have occupation throughout the year. • Structural Unemployment: • This unemployment arises when there is a mismatch between the worker’s skills and the availability of jobs in the market. • Many people in India do not get a job matching their skills due to a lack of required skills. • Frictional Unemployment: • This is a situation when people are unemployed for a short span of time while searching for a new job or switching between jobs. • Frictional Unemployment also called Search Unemployment, is the time lag between jobs. • Frictional unemployment is considered voluntary unemployment because the reason for unemployment is not a shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities. Related Concepts: Government Initiative To Control Unemployment: • In 1979 the government launched TRYSEM – Training of Rural Youth for Self-Employment • The objective of this scheme was to help unemployed youth of rural areas aged between 18 and 35 years to acquire skills for self-employment. • MNREGA – Mahatma Gandhi National Rural Employment Guarantee Act was launched in 2005 providing the right to work to people. • An employment scheme of MGNREGA aimed to provide social security by guaranteeing a minimum of 100 days of paid work per year. • PMKVY – Pradhan Mantri Kaushal Vikas Yojana was launched in 2015. • The objective of PMKVY was to enable the youth of the country to take up industry-relevant skill training in order to acquire a secured better livelihood. • National Skill Development Mission was set up in November 2014 to drive the ‘Skill India’ agenda in a ‘Mission Mode’ in order to converge the existing skill training initiatives.