Which condition is characterized by people who are not actively looking for work yet would like a job?

The condition characterized by individuals who are not actively looking for work but would like a job is correctly identified as discouraged workers. These individuals have typically ceased their job search due to a belief that no employment opportunities are available or that they lack the necessary skills for available jobs. As a result, they fall outside the official unemployment statistics, which only count those actively seeking employment.

In contrast, underemployed workers are those who are working part-time but desire full-time positions or are working in jobs that do not utilize their skills or education to the fullest extent. Frictionally unemployed individuals refer to those who are temporarily unemployed while transitioning between jobs or entering the workforce. Part-time employed individuals work less than full-time hours but are not necessarily seeking additional work. Thus, the unique characteristic of discouraged workers is their lack of current job-seeking despite their desire for employment, making this answer the most appropriate.