Frictional unemployment exists because:?

Question

A) new jobs are continuously being created

B) some old jobs are always being destroyed

C) new workers are always entering the labor market

D) all of the above

Answer 1

Definition of Frictional Unemployment: Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations - a, b & c will all potentially cause people to move between jobs. Therefore, the answer is D.

Answer 2

Actually, none of the above. An example of frictional unemployment would be when jobs shift from Ohio to Florida and the workers have a cost (friction) to moving to where the jobs are. Or when jobs migrate from low skill to high skill and there is a frictional cost to obtaining the requisite skills to obtain them.

Answer 3

D

Frictional unemployment occurs when there are people who are currently unemployed, who are looking for jobs and are qualified for them, and there are or will soon be jobs available for them.

Basically, it is a necessary state of unemployment between jobs or when starting a career.