ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Explanation: Frictional unemployment is an outcome of voluntary employment transitions within an economy. This type of unemployment refers to a transition period of looking for a new job, for different reasons, such as seeking a better job, being fired from a current job, or having voluntarily quit a current job.

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: -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.

Detailed explanation-4: -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-5: -Frictional Unemployment: this is a situation when people are unemployed for a short span of time while searching for a new job or switching between jobs. Frictional Unemployment also called Search Unemployment, is the time lag between the jobs.