Unemployment occurs when a person who is actively searching for employment is unable to find work. It is often used as a measure of the health of the economy. Types of Unemployment Disguised Unemployment: The phenomenon when more people are employed than actually needed. Hence statement 1 is correct. Example : agricultural and the unorganized sectors of India. Seasonal Unemployment: Unemployment occurs during certain seasons of the year. Example: Agricultural labourers. Structural Unemployment: Unemployment arising from the mismatch between the jobs and the skills of the available workers in the market. Hence statement 2 is correct. Many people do not get jobs due to a lack of requisite skills and due to the poor educational level. Cyclical Unemployment: It is the result of the business cycle. Hence statement 3 is not correct. Unemployment rises during recessions and declines with economic growth. Technological Unemployment: It is the loss of jobs due to changes in technology . Frictional Unemployment: Frictional Unemployment is also known as Search Unemployment. Hence statement 4 is not correct. It refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs . Vulnerable Employment: This means people are working informally without proper job contracts. These persons are deemed ‘unemployed’ since records of their work are never maintained.