Frictional unemployment may occur even when the economy is healthy and may ultimately result in a better match between workers and jobs.

Question

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Frictional unemployment occurs when workers are transitioning between jobs or entering the workforce for the first time, and may result in a better match between workers and jobs as individuals find positions that suit their skills and preferences. It is considered a natural and relatively temporary form of unemployment, which can occur even in a healthy economy where overall unemployment rates are low.

Frictional Unemployment May Occur Even When the Economy Is Healthy