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The Meaning of Frictional Unemployment

The Meaning of Frictional Unemployment

Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations- in other words, unemployment that arises because most people don't enter into a new job immediately after exiting an old one (voluntarily or involuntarily). Frictional unemployment is not thought to be a big problem from a policy standpoint because it is entirely reasonable that people would take some time to find a job that is a good match rather than take the first opportunity that comes along. Technology that helps to match workers with jobs and streamline the interview and hiring process most likely result in the amount of frictional unemployment that exists in an economy.

Terms related to Frictional Unemployment:

  • Unemployment
  • Cyclical Unemployment
  • Structural Unemployment

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Journal Articles on Frictional Unemployment: