Frictional unemployment may occur even when the economy is healthy, and may ultimately result in a better match between workers and jobs.

Question

Quizplus · Accepted Answer

Frictional unemployment can occur due to the time it takes for workers to search for new jobs and for employers to find the right employees. This process of job matching can lead to better outcomes, such as workers finding jobs that better match their skills and preferences and employers finding more qualified and motivated employees. Therefore, frictional unemployment can ultimately result in a more efficient labor market and better utilization of resources.

Frictional Unemployment May Occur Even When the Economy Is Healthy