Frictional and structural unemployment are always present in a dynamic economy.

Question

Quizplus · Accepted Answer

Frictional and structural unemployment are characteristics of any economy with a changing labor market. Frictional unemployment is caused by the natural turnover of workers between jobs or from entry into the labor force, while structural unemployment results from a mismatch between the skills and qualifications of workers and the available jobs. As the economy grows and evolves, these types of unemployment will always be present to some degree.

Frictional and Structural Unemployment Are Always Present in a Dynamic