Frictional unemployment
Definition. Frictional unemployment is the unemployment that occurs when workers are temporarily between jobs as they search for new positions or move from one job to another. It exists even in a healthy economy because the matching of workers to suitable vacancies takes time and information is imperfect.
Because it reflects normal labour market turnover rather than a shortage of jobs, frictional unemployment is consistent with the economy being at full employment.
This term belongs to Unemployment in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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