| Unlike frictional unemployment, long-term unemployment carries with it the loss of human capital and morale, ultimately threatening the employability of the person. |
| This is frictional unemployment corresponding to the time it takes young people to find their first job. |
| But how can we find out whether the U.S. economy has too much, too little, or the right amount of frictional unemployment? |
| If there is an inefficient excess of frictional unemployment, it should be reduced by policies that change search behavior and improve the effectiveness of job markets. |
| Unemployment beyond frictional unemployment is classified as unintended unemployment. |
| In the short term, the reallocation of workers between the various sectors may take some time, increasing frictional unemployment. |
