Q11 of 28 Page 180

What do you think about frictional unemployment?

Frictional unemployment is the unemployment that results from time spent between jobs when a worker is penetrating for, or transitioning from one job to another.It is occasionally called search unemployment and can be based on the conditions of the individual. Frictional unemployment exists because both jobs and workers are diverse, and a mismatch can result between the individuality of supply and demand. Such a difference can be related to skills, payment, work time, position, attitude, taste, and a multitude of other factors.


Frictional unemployment is inescapable, but it is usually short-term. It is one of the mechanisms of natural unemployment. It is the buck rate of unemployment in an emergent economy. Unemployment below that level means employers cannot find enough workers to keep produce all they can. It slows economic growth and development.


More from this chapter

All 28 →