Definition
- Frictional unemployment
- Frictional unemployment is the unemployment that results from people moving between jobs, while they learn about vacancies, apply and find a good match.
Example
Can you think of an example of frictional unemployment?
A graduate leaves university in June and spends the summer weighing up offers before starting work in September. The jobs exist and her skills fit them; the months out of work are the time the search took.
Test yourself
Can you name five types of unemployment?