Question

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.
a. Structural
b. Natural
c. Frictional
d. Cyclical

Answer 1

Answer: c. Frictional

Explanation:

Frictional Unemployment is known to be a type of unemployment which exists between the time an unemployed person is looking for a paid job and the time used in getting the paid job. It is also due to changing from one job to the other because employees’ desire well paid jobs in which they can make maximum use of their skills and as a result they look for better offers. This type of unemployment last for a limited period of time.  Thus, it is also known as search unemployment.