Frictional unemployment arises when
A)unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs.
B)labor must be reallocated from industries that are shrinking to areas that are growing.
C)workers must search for suitable jobs and firms must search for suitable workers.
D)output and employment are below full-employment levels.

Question

Quizplus · Accepted Answer

Frictional unemployment is a temporary type of unemployment that arises as a result of the time and effort that workers and employers take to find suitable job matches. This can happen due to various reasons such as workers being in between jobs, recent graduates trying to find their first job, or workers searching for better job opportunities. As a result of this search process, there is always some level of frictional unemployment in the labor market. Choice C accurately describes this process.

Frictional Unemployment Arises When