Which of the following best describes unemployment?

Unemployment is best described as the number of people looking for work but unable to find it. This definition captures the essence of unemployment by emphasizing the active search for work among those individuals who are capable and willing to work but are currently without a job.

This definition is critical in understanding economic measures because it focuses specifically on those who are part of the labor force — that is, individuals who are actively seeking employment. This group is distinct from those who are unable to work due to various reasons or those who have chosen not to participate in the labor market.

The other options fail to accurately define unemployment. For instance, mentioning inactivity of individuals regardless of capability does not account for the individuals actively seeking work; likewise, referring to the total population not engaged in economic activities broadens the concept beyond those specifically looking for work. Additionally, individuals working below their skill level refers more to underemployment rather than unemployment, as it involves those who are engaged in work but not utilizing their skills fully. Therefore, the focus on actively seeking work in the definition provided makes it the most fitting description of unemployment.