Define the friction unemployment also discuss why a certain amount of frictional unemployment probably necessary in a well-functioning economy by providing examples. (Give Ans in one day)
Answers
Explanation:
Frictional unemployment is the result of voluntary employment transitions within an economy. Frictional unemployment naturally occurs, even in a growing, stable economy. Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time constitute frictional unemployment. It does not include workers who remain in their current job until finding a new one, as, obviously, they are never unemployed.
Frictional unemployment is always present in the economy. It contributes to the overall employment picture and is part of natural unemployment, which is the minimum unemployment rate in an economy due to economic forces and movement of labor. Natural unemployment also reflects the number of workers who are involuntarily unemployed, whether due to a lack of skill or replacement by technology.
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