ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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. It means that employees are seeking new jobs and new careers.

Detailed explanation-3: -For example, employees who produce a specialty clothing product that suddenly is no longer a trend might lose their position producing this specific product, causing structural unemployment.

Detailed explanation-4: -Frictional unemployment occurs in a growing, stable economy. Workers moving from job to job and new workers entering the workforce contribute to frictional unemployment. Frictional unemployment is also caused by those deciding to prioritize taking care of their family, returning to school, or finding purpose in life.