Frictional Unemployment
Definition
Frictional unemployment occurs when individuals are temporarily between jobs or are searching for their first job.
Analogy
Imagine you're at an amusement park, going from one ride to another. In between rides, there's a short period where you're not on any ride yet. Similarly, frictional unemployment represents the temporary period when individuals are transitioning between jobs.
Related terms
Job Search Effort: The time and energy individuals put into finding suitable employment.
Job Turnover: The rate at which workers leave their current jobs and find new ones.
Information Asymmetry: When employers have more information about job openings than potential employees do.
"Frictional Unemployment" appears in:
Study guides (1)
Additional resources (1)
Practice Questions (2)
- Which of the following is a characteristic of frictional unemployment?
- Which of the following is an example of frictional unemployment?
Resources
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