Unemployment arising due to mismatch between Job availability in the market and skills of available worker is called?

The correct option is Structural.

Key Points

• The term unemployment refers to a situation where a person actively searches for employment but is unable to find work.
• Structural unemployment comes about through a technological change in the structure of the economy in which labour markets operate. 
• Technological changes can lead to unemployment among workers displaced from jobs that are no longer needed
• Examples of such changes include the replacement of horse-drawn transport with automobiles and the automation of manufacturing,

Additional Information

• Frictional Unemployment
  • This type of unemployment is usually short-lived. It is also the least problematic from an economic standpoint. It occurs when people voluntarily change jobs.
• Seasonal unemployment
  • It occurs at different points over the year because of seasonal patterns that affect jobs. Some examples include ski instructors, fruit pickers and holiday-related jobs.
• Economic Unemployment
  • During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs available for those who want to work. Businesses experiencing weaker demand might reduce the number of people they employ by laying off existing workers or hiring fewer new workers.