frictional unemployment


Also found in: Dictionary, Wikipedia.

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. (1)
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.
Cyclical unemployment corresponds to business cycles, structural unemployment occurs when the jobs that are available do not match with the skill sets of the unemployed workers, and frictional unemployment corresponds to the turnover of labor.
But, given the structural changes in the workforce to which I refer later, I wonder whether a higher rate of frictional unemployment may not have been a factor in the higher overall rate of unemployment.
In short: 1) improving the organisation and diminishing frictional unemployment; 2) decreasing the marginal disutility of labour; 3) increasing the marginal physical productivity of labour; and 4) increasing the price of non wage goods (Keynes, 1957).
"It is a main factor of constructively intervening to solve a key problem in the job market represented in the lack of communication channels between supply and demand, whichhas generateda form of unemployment known as 'frictional unemployment' resulting from the absence of friction or communication between the two sides of the employment process," Rizk said in a statement to SANA.
One can hypothesise what ratio of unemployed to vacancies is a measure of frictional unemployment, or what share of vacancies reflects lack of skills among the unemployed.
They provide powerful motivation for theories of frictional unemployment.
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. He also imputed rentals to household capital, institutional capital, and government capital.
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).