What is Frictional Unemployment?
Frictional unemployment is a type of unemployment which occurs naturally in even the highest performing economies. In fact, this type of unemployment is often viewed as beneficial to workers and the economy. The existence of frictional unemployment and the closely related structural employment mean that the unemployment rate in a nation will never drop all the way to zero. Any time someone is between jobs, this is considered frictional unemployment. Some common examples include college graduates seeking their first jobs, craftspeople who are laid off between projects, and people who quit their jobs to relocate or to seek out better employment. These individuals are usually prepared for their brief periods of unemployment, and they do not stay unemployed for very long as long as the economy and the job market are stable.
