New college graduates still looking for their ﬁrst jobs would be classiﬁed in the BLS data as

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the temporary unemployment of people transitioning between jobs or entering the labor force for the first time. Thus, new college graduates still looking for their first jobs are considered frictionally unemployed. Option B (not yet in the labor force) is incorrect because these graduates are actively seeking employment. Option C (cyclically unemployed) is incorrect because this refers to unemployment caused by fluctuations in the business cycle, while option D (structural unemployment) is incorrect because it refers to long-term unemployment caused by changes in the composition of industries or a mismatch between skills and available jobs.

New College Graduates Still Looking for Their ﬁRst Jobs Would