As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when there is a temporary mismatch between the skills and preferences of workers and the requirements of available jobs, such as when individuals are searching for new jobs or firms are looking for suitable employees. This type of unemployment is considered a normal part of a healthy economy.

As Firms Search for the Best Employee to Fill an Opening