Definition of Frictional unemployment:
Temporary unemployment arising out of the inevitable time lags in the functioning of labor markets, such as the time taken in moving from one job to another.
The unemployment which exists in any economy due to people being in the process of moving from one job to another.
Frictional unemployment is always present in the economy. It contributes to the overall employment picture and is part of natural unemployment, which is the minimum unemployment rate in an economy due to economic forces and movement of labor. Natural unemployment also reflects the number of workers who are involuntarily unemployed, whether due to a lack of skill or replacement by technology.
Frictional unemployment is the result of voluntary employment transitions within an economy. Frictional unemployment naturally occurs, even in a growing, stable economy. Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time constitute frictional unemployment. It does not include workers who remain in their current job until finding a new one, as, obviously, they are never unemployed.
How to use Frictional unemployment in a sentence?
- With unemployment at 4.4% of the available workforce, the country is scarcely above what economists term ‘frictional unemployment’.
- You may find yourself in frictional unemployment from time to time but that is just part of life in todays business world.
- Frictional unemployment naturally occurs, even in a growing, stable economy.
- After searching for jobs for months to no avail, Brad was beginning to worry just how long he would be left reeling from the effects of his frictional unemployment .
- Frictional unemployment is the result of employment transitions within an economy.
- Workers voluntarily leaving their jobs and new workers entering the workforce both add to frictional unemployment.
- If you find yourself the victim of frictional unemployment just keep your head up and work hard to get through this tough time.
Meaning of Frictional unemployment & Frictional unemployment Definition