Frictional unemployment includes
A) unemployment caused by a lack of education so that workers do not possess necessary job skills.
B) unemployment caused by industries moving overseas to better meet foreign competition.
C) unemployment caused by normal labor turnover associated with people leaving and entering the labor force.
D) unemployment caused by automation of the work place that displaces unskilled workers.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the temporary unemployment that arises when workers are searching for new jobs or are transitioning between jobs. This is caused by normal labor turnover associated with people leaving and entering the labor force. A lack of education causing workers to not possess necessary job skills (A) is more closely associated with structural unemployment. Unemployment caused by industries moving overseas to better meet foreign competition (B) would be classified as outsourcing, which is another form of structural unemployment. Unemployment caused by automation of the workplace that displaces unskilled workers (D) is known as technological unemployment, which is another form of structural unemployment.

Frictional Unemployment Includes