frictional unemployment


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Frictional Unemployment

Unemployment that results from incomplete information. Examples of frictional unemployment include first-time job seekers who do not have jobs because they do not have the resources to look for jobs successfully. Frictional unemployment may also occur when a company does not know where to look for qualified individuals. It is thought to be impossible to completely eliminate frictional unemployment.

frictional unemployment

see UNEMPLOYMENT.

frictional unemployment

or

transitional unemployment

UNEMPLOYMENT associated with people changing jobs. In some cases people who leave one job may start another job the next day. In other cases, people may be temporarily unemployed between jobs while they explore possible job opportunities. The latter case constitutes ‘frictional’ unemployment insofar as labour markets do not operate immediately in matching the supply of, and demand for, labour. Some frictional unemployment may be regarded as ‘voluntary'because people choose to leave their current jobs to look for better ones whereas other frictional unemployment is ‘involuntary’ where people have been dismissed from their current jobs and are forced to look for alternative ones. See JOB CENTRE.
References in periodicals archive ?
The intuitive definition renders technological unemployment observationally equivalent to frictional unemployment.
As indicated above, frictional unemployment can have various faces: a fulltime worker leaves a job but can only find a part-time job quickly rather than a full-time one and so decides to take the part-time job.
Frictional unemployment can be reduced by improving the communication between job seekers and job providers.
In addition, the relative employment of women and students had risen substantially, and most of these were in part-time and casual employment, areas of employment disinterested in unions--workforce structural changes which may also have increased the rate of frictional unemployment.
Unlike previous research on unemployment flows, ours focuses on low-frequency relationships and interprets the evidence in light of steady-state properties of a frictional unemployment model.
DGBAS explains that there are three kinds of unemployment, based on cause: frictional unemployment, cyclical unemployment, and structural unemployment.
He produced estimates for the value of time spent in unpaid household work, volunteer labor, school work, and frictional unemployment.
Economists define three forms of unemployment: cyclical unemployment (a result of insufficient demand); frictional unemployment (which includes workers who have just entered the labor force or who are between jobs); and structural unemployment (which is a result of a mismatch between the jobs available and the workers available to fill them).
Full employment' in this context is defined as employment for all with a high rate of labour-force participation and with frictional unemployment as the only tolerable form of temporary joblessness.
Readers will find discussions on economic ethics and frictional unemployment particularly relevant.
This is because, as long as wage differentials exist, frictional unemployment levels will be positive in equilibrium.
The excess of labor supplied over labor demanded is measured as unemployment with a few percentage points being allocated to the ordinary exchange of jobs that occurs naturally in any society, known as transitional or frictional unemployment.