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

Question

Quizplus · Accepted Answer

Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search unemployment and can be voluntary based on the circumstances of the unemployed individual. It includes situations where people are entering the workforce for the first time or leaving one job in search of another, hence choice A is correct. Choices B, C, and D describe structural unemployment, which is caused by industrial reorganization, lack of skills, or technological changes, not frictional unemployment.

Frictional Unemployment Includes