frictional unemployment


Also found in: Financial, Wikipedia.

frictional unemployment

n
(Industrial Relations & HR Terms) those people who are in the process of moving from one job to another and who therefore appear in the unemployment statistics collected at any given time
Mentioned in ?
References in periodicals archive ?
If workers displaced by automation are unable to find new jobs quickly, frictional unemployment will rise, putting downward pressure on wages.
Both frictional unemployment and structural unemployment involve workers who are searching for a job, but, in order to secure a position, workers who are structurally unemployed must do something in addition to just searching.
Unfortunately, however, intuitive understandings can lead to technological unemployment being conflated with frictional unemployment.
Such temporary spells of unemployment are referred to as frictional unemployment.
For instance there are the differences between frictional unemployment versus cyclical unemployment versus structural (or long-term) unemployment (Myrick, 2012; Holzer, 1993; Schwartz, Cohen & Grimes, 1986; Gilpatrick, 1966).
Frictional unemployment arises from the unemployment of individuals who are changing jobs in response to temporary layoffs, workers quitting jobs to find new ones with better pay or job conditions, and persons entering or leaving the labor force.
Frictional unemployment arises from the ever-present movement of people into and out of jobs.
Cyclical unemployment corresponds to business cycles, structural unemployment occurs when the jobs that are available do not match with the skill sets of the unemployed workers, and frictional unemployment corresponds to the turnover of labor.
But, given the structural changes in the workforce to which I refer later, I wonder whether a higher rate of frictional unemployment may not have been a factor in the higher overall rate of unemployment.
Here, it is suggested that even in this period of economic recession there is a need to understand the nuances of frictional unemployment and that firms should be forward looking in anticipation of labour mobility and shifts in the demand for labour.
One can hypothesise what ratio of unemployed to vacancies is a measure of frictional unemployment, or what share of vacancies reflects lack of skills among the unemployed.
They provide powerful motivation for theories of frictional unemployment.