Definition and Reasons of frictional Unemployment

Frictional unemployment is the time period when a worker is actively seeking for a job or transferring one job to another. It is similar to an individual’s temporary unemployment when a worker is out of the job at one point in time but will then go back as soon as job is available. People who are in between jobs experience frictional unemployment.

Some sample scenarios are listed below:
1. A theater actor will become unemployed between the time his last stage play makes the final performance and the next scheduled stage play is set to begin on Broadway.

2. A construction worker becomes unemployed between the time his last project contract comes to an end and the next project will begin.

3. Farmers will become unemployed by the time summer is over and winter is drawing near.

This form of unemployment exists all the time and getting rid of it is impossible. Even countries with thriving economies will experience at some point that is experienced by many workers. There are many reasons why this occurs. One reason could be that employers are not finding the right people for their job openings or that those workers do not have the appropriate skills required for available jobs offered by employers. It also occurs when fresh graduates do not have the skills and experience yet needed by employers for vacant job positions. There are many factors where workers may be in between jobs. It could be their job preference, location, work schedules, skills, work circumstances or surroundings, level of dissatisfaction, so on and so forth.

Frictional unemployment will always exist as long as workers will seek for better opportunities in their career and employers will continue searching for the best people for the job. Friction in the employment status of an individual may be significant when that individual desires better pay and benefits, and that will only be achieved if he is strong enough to leave a previous job for a better one.