Frictional unemployment occurs when individuals are temporarily out of work while transitioning between jobs. This type of unemployment is often voluntary, as people may leave their current positions to seek better opportunities or to relocate. It reflects the time it takes for job seekers to find a suitable match for their skills and preferences.
This form of unemployment is generally short-term and is a natural part of a healthy economy. It can be influenced by factors such as the availability of information about job openings and the efficiency of the job market. Frictional unemployment is distinct from other types, such as structural unemployment or cyclical unemployment.