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Chapter 20: Problem 2

What is the relationship between frictional unemployment and job search?

Short Answer

Expert verified
Frictional unemployment is the result of job search. The time taken to match job seekers with suitable jobs results in short-term unemployment, known as frictional unemployment.

Step by step solution

01

Understanding Frictional Unemployment

Frictional unemployment is the short-term unemployment that arises from the process of matching workers with jobs. It occurs because job search takes time, as workers need to find out about the wages, working conditions, and other details of the available jobs, and employers need to evaluate the skills, reliability, and other characteristics of the job seekers.
02

Understanding Job Search

A job search is the process by which workers find appropriate jobs given their tastes and skills. It involves the actions and practices performed in order to find a course of employment.
03

Relating Frictional Unemployment and Job Search

Frictional unemployment and job search are closely related. Frictional unemployment occurs as a result of job search. When people are in the process of searching for a job, they are not working, thus they are considered unemployed. The more effective the job search, the shorter the period of frictional unemployment.

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