Unemployment caused by delays in matching available jobs and workers is called ________ unemployment.
A) structural
B) cyclical
C) discouraged
D) frictional
E) seasonal

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by the time it takes for workers to search for and find a job that matches their skills and preferences, and for employers to find and hire the right workers. This type of unemployment is unavoidable in a dynamic economy with constantly changing job opportunities and labor market conditions. Structural unemployment, on the other hand, arises from a mismatch between the skills and requirements of available workers and the demands of available jobs. Cyclical unemployment is caused by fluctuations in aggregate demand and economic activity. Discouraged and seasonal unemployment are subsets of frictional unemployment, with discouraged workers giving up on their job search and seasonal unemployment being caused by seasonal variations in demand for labor.

Unemployment Caused by Delays in Matching Available Jobs and Workers