Frictional Unemployment

Frictional unemployment occurs when individuals are temporarily out of work while transitioning between jobs. This can happen when someone is recent college graduate seeking their first job, or when a worker voluntarily leaves a position to find a better fit. It reflects the time needed to search for employment that matches one’s skills and preferences. It’s a normal part of a healthy economy, indicating that workers are moving towards more suited job opportunities, and typically, it doesn’t last long.