What type of unemployment results from workers moving between jobs or entering the labor market?

Frictional unemployment results from workers moving between jobs or entering the labor market.

It can occur when a graduate searches for a first job, when a worker leaves one position to find a better match, or when someone relocates and looks for employment. The unemployment is associated with the time needed to find information and match workers with suitable vacancies.

Frictional unemployment can exist even when the economy is healthy and jobs are available. It is therefore different from cyclical unemployment, which rises during economic downturns when aggregate demand falls. Structural unemployment arises when workers’ skills or locations do not match available jobs, while seasonal unemployment follows predictable seasonal patterns.

Public employment services, job-search information, and training can affect how long unemployment lasts. Economists often regard some frictional unemployment as unavoidable in a dynamic labor market because people and jobs are continually changing.