Frictional unemployment
Frictional unemployment arises while people search for work or move between jobs, reflecting the time and information needed to match workers and vacancies. It can occur in a growing economy and alongside unfilled posts. Better vacancy information, mobility and recruitment processes can reduce matching delays, although eliminating all search time is unrealistic and not every available job is an appropriate match.
Worked example
An employee leaves one position and spends several weeks finding a suitable new role in the same occupation. The interval can represent frictional unemployment if the person meets the relevant search and availability conditions.
Common mistake
Do not equate frictional unemployment with an inability to work or assume any vacancy automatically provides a suitable job for every jobseeker.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |