What is frictional unemployment?
Unemployment and its main types
Unemployment in society is a certain state of the labour market, in which a number of the economically active population, i.e. people who in their characteristics is able and willing to work, can not find a paid activity. However, despite having these characteristics in common; these people differ in the nature of unemployment.
So, specialists in the study of the labor market commonly, there are three main types of unemployment. The first of these is structural unemployment which is connected with the restructuring of the economy, which may result in a reduction in demand for specialists in individual sectors. The second type of unemployment is cyclical: it is a consequence of the General economic decline resulting from the negative phase of the economic cycle. In such a situation reduces the demand for professionals in all branches. Finally, the third main type of unemployment — frictional, which occurs in a situation when some of the workers in the labour market is in search of a new place. In addition, some experts have other types of unemployment, such as seasonal and institutional.
Frictional unemployment is one of the most positive for society, types of unemployment, because it is a consequence of the desire of qualified employees to find a new use. Actually this is a normal market phenomenon, not a threat neither for employers nor for employees.
Overall, among the components of frictional unemployment there are several basic components. The first of these is the so-called vertical component, formed by workers who seek employment with higher qualifications, a higher salary or a higher position. Thus, in this case we are talking about improving their situation in the labour market.
The second component of frictional unemployment — the horizontal component, in which the employee changes his original location to another with preservation of approximately the same level of wages, competencies and positions. The causes of such decision may be different, for example, moving to another city, a reduction from the previous place of work or other.
Finally, the third component of this type of unemployment — people seeking work for the first time, there are young professionals or workers coming into the labour market after a long break, for example, women after maternity leave. This category of workers replaces those who, by contrast, leaves the labour market because of child birth, retirement or other reasons.