ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Frictional unemployment occurs in the period between leaving one job and joining another. In other words, frictional unemployment is the time between when an employee leaves employment and when they transition into their new role.

Detailed explanation-2: -Frictional unemployment is a type of short-term unemployment. Frictional unemployment happens when a person is voluntarily job searching or searching for a new career. Frictional unemployment isn’t necessarily a bad thing. In fact, because frictional unemployment is voluntary, it can be a sign of a healthy economy.

Detailed explanation-3: -For example, a worker who quits their job in anticipation of lining up another one or someone who has just entered the workforce after graduation would be considered frictionally unemployed.

Detailed explanation-4: -Frictional unemployment: the natural unemployment people experience when they’re between jobs. Cyclical unemployment: when the economy is doing well, more jobs are created; when it’s in a downturn, many people wind up being laid off.

Detailed explanation-5: -Key Takeaways Frictional unemployment involves people transitioning between jobs; it has nothing to do with the economic cycle and is voluntary. Structural unemployment is a direct result of shifts in the economy, including changes in technology or declines in an industry.