Reducing Frictional Unemployment

Frictional Unemployment is a form of unemployment where there is a mismatch or lack of information between jobseekers and employers. It is noted the frictional unemployment rate can never go down to zero as there will always be instances when workers will be in between jobs in their quest to search for better paying jobs or positions that give them better opportunities. On the other hand while employers may entertain applicants when jobs are available they will always seek for workers who have the best skills and high level of experience who can effectively contribute to the success of the organization.

One reason as well for frictional unemployment is when appropriate employers and effective workers are not able to meet in the same location. For example, a new business endeavor in a previously suburban location which attempts to modernize and improve the lifestyle of people similar to the city may not have the potential employers who can perform the tasks required by employers. The reason for this may be that the skills required for the job openings are way too advanced than most jobs held in the location. Employers will then have to resort to accepting employees from other locations in order to meet the demands of the business venture.

In order to reduce the incidence of frictional unemployment, proper exchange of information must be used to make details of jobs and possible workers available. Suitable training facilities must never be taken for granted in schools and colleges. Discrimination toward employment of individuals must not take place as well in the form of race, work experience, age, and other factors. Accurate educational advice should also be provided among college students so that they are informed about the measures they must do in order to get jobs the soonest possible time.