ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Frictional Unemployment. This a short-term unemployment that occurs when individuals are reentering the labor force, when graduates are seeking their first job, and when workers quit their jobs in search of ‘greener pastures. ‘ 3.

Detailed explanation-2: -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-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 results when people are temporarily unemployed, either because they are new to the job market or are searching for a better job. Structural unemployment is caused by a mismatch in the skills held by those looking for work and the skills demanded by those seeking workers.

Detailed explanation-5: -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.