Frictional unemployment occurs when unemployed workers yet find a suitable new job. It takes time for workers when they move from one position to another, mainly for higher-paying jobs.
And, for graduates, as they enter the labor force, they take several processes before getting the right job. They should prepare a curriculum vitae, browse alternative job openings, wait for interviews, and so on. It all takes time.
As long as both are not working and actively looking for jobs, the Central Statistics Agency classifies both as unemployed. Sometimes this term also refers to search unemployment since they were actively looking for a job.
Frictional unemployment is inevitable
Frictional and structural unemployment forms what economists call the natural rate of unemployment. Both types of unemployment always persist in the economy, even in full employment. As a result, the unemployment rate will never be zero.
Let’s discuss and distinguish the two.
Frictional unemployment occurs because there is a time lag before people find the right job, and employers hire them.
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