Frictional Unemployment

Even in a healthy economy with plenty of jobs, some people will be unemployed at any given time simply because finding the right job takes time. Workers need to search, apply, interview and decide, while employers need time to find and select suitable candidates.

For example, a recent graduate who spends two months looking for their first job, or an accountant who leaves one company and spends a few weeks finding a better position, is frictionally unemployed.

Frictional unemployment is generally considered normal and even healthy, because it reflects people moving to jobs that better match their skills and preferences, which can improve productivity.

It can be reduced by making it easier for workers and employers to find each other, for example through job websites, employment services and better information about vacancies. Because some frictional unemployment always exists, an economy never reaches zero unemployment, even at full employment.