The Lorentz Force is the sum of the forces on a charge, $q$, due to the electric field, $\mathbf E$ and the magnetic field, $\mathbf B$ at the point in space where the charge is. Thus
$$\mathbf F_{Lorentz}=q\mathbf E+ q\mathbf v \times \mathbf B$$
I call the first term on the right 'the electric Lorentz Force' and the second term 'the magnetic Lorentz Force'.
In the experiment of Faraday for which you give the picture, the large coil in which the voltage is shown to be induced is stationary, so the electrons in it have $\mathbf v=0$, and there is no magnetic Lorentz force on them. Therefore the induced emf is due to the electric Lorentz Force, $q\mathbf E$. The electric field, $\mathbf E$, is non-conservative and given by the Faraday-Maxwell equation (integrated form):
$$\int _s \mathbf E.d\mathbf s=-\frac {\partial}{\partial t}\int_S\mathbf B . d\mathbf S$$
in which $\mathbf {ds}$ is an element of the line bounding the area of which $\mathbf{dS}$ is an element, and the line integral is taken all round the area.
We take a cross-section of the coil as the area, and note that $\frac {\partial}{\partial t}\int_S\mathbf B . d\mathbf S$ is non-zero because we are moving the small, current-carrying coil. So there is an electric field all round the (circular) boundary of this cross-section. This electric field urges electrons through the turns of the coil – the induced emf.
[Suppose that Faraday had kept the small current-carrying coil stationary, but had moved the large coil. In that case, for the free electrons in the large coil, $\mathbf v \neq 0$ and, moreover, $\mathbf B$ due to the small coil is not strictly parallel to the axis (the field lines 'splay out') so $q\mathbf v \times \mathbf B \neq 0$. But this time, $\mathbf E = 0$, because the $\mathbf B$ due to the small coil doesn't change with time.
It is not difficult to show that the emf is the same whether we calculate it using the electric Lorentz force in the case when the large coil is stationary and the small coil moving, or using the magnetic Lorentz force in the case when the large coil is moving and the small coil stationary. All that matters is the relative velocity – which is as it should be.]