Frictional unemployment is a term given to the time period during which a person remains unemployed temporarily, having quit his/her job for another more viable job opportunity.
During this time that an individual remains unemployed, he/she is normally looking for another job, hence can be used interchangeably with search employment.
Frictional unemployment is not just as a result of the employee alone but also can be brought about by the employer.
A minor mismatch between labor force demand and supply forces can lead to this form of unemployment.
Frictional unemployment is temporary since the person who has lost his/her job is merely looking for a better job in terms of remuneration and perks.
Quitting one's job for greener grass is normal and prevalent that is why this form of unemployment is common even in developed countries.
After all, there is no country that has achieved full employment where each and every person has a well-paying job.
Sounds perfect but it is actually not an ideal situation for any country to want to be in since it has its repercussions.
Examples of frictional unemployment include employees hired on a temporary basis by a seasonal-basis kind of business, non-hiring of new employees due to a divergence in the job opportunities present and skills required or even fresh college graduates bypassing some jobs in the hope of finding better opportunities.
So what are the major causes of this form of unemployment? Causes of Frictional Unemployment One common cause of frictional unemployment is one of the examples we have identified above regarding fresh college graduates.
They may be qualified for some jobs they think aren't good enough for them therefore overlooking these employment opportunities while in other cases the employers do not hire them due to lack of enough experience or even undesired skills.
Another major cause lies in the definition of frictional unemployment itself which dwells on the reasons people quit their jobs.
As such, primary factors such as remuneration, preference, skills, work environment or location play a huge role in this kind of unemployment.
Another cause that cannot be overlooked is people out of work temporarily due to reasons such as maternity leave after which they'll be absorbed back into employment again.
Lastly, the relationship between employees and their employer, which to a certain degree is varied, is another cause.
How to Reduce Frictional Unemployment Frictional unemployment can be reduced in the following ways: · Reducing the difference between gross and net incomes.
· Provision of ultra-modern training facilities in learning institutions from the elementary to top-level.
· Reducing or complete removal of discrimination in the work environment.
· Taking action against any biases in the job environment.
· More educational career advice in colleges to enlighten students more on the job market in relation to their skills as well as job demands.
During this time that an individual remains unemployed, he/she is normally looking for another job, hence can be used interchangeably with search employment.
Frictional unemployment is not just as a result of the employee alone but also can be brought about by the employer.
A minor mismatch between labor force demand and supply forces can lead to this form of unemployment.
Frictional unemployment is temporary since the person who has lost his/her job is merely looking for a better job in terms of remuneration and perks.
Quitting one's job for greener grass is normal and prevalent that is why this form of unemployment is common even in developed countries.
After all, there is no country that has achieved full employment where each and every person has a well-paying job.
Sounds perfect but it is actually not an ideal situation for any country to want to be in since it has its repercussions.
Examples of frictional unemployment include employees hired on a temporary basis by a seasonal-basis kind of business, non-hiring of new employees due to a divergence in the job opportunities present and skills required or even fresh college graduates bypassing some jobs in the hope of finding better opportunities.
So what are the major causes of this form of unemployment? Causes of Frictional Unemployment One common cause of frictional unemployment is one of the examples we have identified above regarding fresh college graduates.
They may be qualified for some jobs they think aren't good enough for them therefore overlooking these employment opportunities while in other cases the employers do not hire them due to lack of enough experience or even undesired skills.
Another major cause lies in the definition of frictional unemployment itself which dwells on the reasons people quit their jobs.
As such, primary factors such as remuneration, preference, skills, work environment or location play a huge role in this kind of unemployment.
Another cause that cannot be overlooked is people out of work temporarily due to reasons such as maternity leave after which they'll be absorbed back into employment again.
Lastly, the relationship between employees and their employer, which to a certain degree is varied, is another cause.
How to Reduce Frictional Unemployment Frictional unemployment can be reduced in the following ways: · Reducing the difference between gross and net incomes.
· Provision of ultra-modern training facilities in learning institutions from the elementary to top-level.
· Reducing or complete removal of discrimination in the work environment.
· Taking action against any biases in the job environment.
· More educational career advice in colleges to enlighten students more on the job market in relation to their skills as well as job demands.
Source...