________ unemployment refers to the time lag between jobs when an individual is searching for a new job or is switching between jobs.

Question

Question

This question was previously asked in

SSC Selection Post 2024 (Higher Secondary Level) Official Paper (Held On: 21 Jun, 2024 Shift 2)

Answer 1

The correct answer is Frictional

Key Points

Frictional unemployment refers to the time lag between jobs when an individual is searching for a new job or is switching between jobs.
It is a natural form of unemployment that occurs even in a healthy economy.
Frictional unemployment can be influenced by factors such as job search time, availability of job information, and personal circumstances.
It is generally short-term and voluntary, as workers choose to leave their jobs to find better opportunities.
Policies to reduce frictional unemployment include improving job matching services, providing better labor market information, and offering training programs.

Additional Information

Seasonal unemployment occurs when there is a change in the demand for labor due to seasonal factors.
Technological unemployment happens when workers are displaced due to technological advancements.
Structural unemployment arises from a mismatch between the skills of workers and the requirements of jobs.
Understanding different types of unemployment helps policymakers design targeted interventions to reduce overall unemployment rates.