What is Frictional Unemployment?
- Frictional unemployment is unemployment that results because it takes time for workers to search for the jobs that are best suited to their tastes and skills.
How Do I Remember It?
- Think of frictional unemployment as the “friction” or temporary pause in employment as people move between jobs. It’s like the slight delay when switching gears in a car.
Real World Example
- A recent college graduate who is actively searching for their first job but hasn’t found one yet is experiencing frictional unemployment.
- Similarly, someone who quits their current job to look for a better opportunity or relocates to a new city for employment may also encounter frictional unemployment during the transition period.
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