Economic Definition of frictional unemployment. Defined.
Offline Version: PDF
Term frictional unemployment Definition: Unemployment attributable to the time required to match production activities with qualified resources. Frictional unemployment essentially occurs because resources, especially labor, are in the process of moving from one production activity to another. Employers are seeking workers and workers are seeking employment, the two sides just haven't matched up. Hence unemployment of the frictional variety increases. This mismatch is largely the result of limited information, which is often compounded by geographic separation between producer and resource. Frictional unemployment is one of four unemployment sources. The other three are cyclical unemployment, seasonal unemployment, and structural unemployment.
« free-trade area | friendly acquisition »
Permalink: https://glossary.econguru.com/economic-term/frictional+unemployment