What is frictional unemployment? Here are some definitions.
Noun
(economics) A type of unemployment explained by people being temporarily between jobs, searching for new ones. A labour market is regarded as being in the state of full employment if frictional unemployment is the only kind of unemployment present.
Examples
This is frictional unemployment corresponding to the time it takes young people to find their first job.
We consider a model with frictional unemployment and staggered wage bargaining where hours worked are negotiated for each period.
Certainly, reallocation of labour could not occur with no frictional unemployment.
Usually, frictional unemployment is of rather short duration.
But how can we find out whether the U.S. economy has too much, too little, or the right amount of frictional unemployment?
In the short term, the reallocation of workers between the various sectors may take some time, increasing frictional unemployment.
