Question

From the following examples, select the example illustrating frictional unemployment.

Winny is annoyed with her manager at the Tasty Freeze where she has worked all summer. She decides one day just to not go to work anymore and instead goes on a trip with a friend. A city has been hit hard in the recession and the largest construction company lets go of 300 construction workers. Justin works at an oil rig in Texas. He hears there are better jobs in North Dakota, so he uits his in and moves to North Dakota. It takes lustin three months to find

Answer 1

Frictional unemployment is a type of unemployment in which one is unemployed for a short period of time, say one is searching for a job after clearing his highschool so the time it takes to find a job is the time when he is frictionally unemployed. Another case is one when someone is trying to switch jobs i.e. quit a job and than join a new job, so the time frame between quitting a job and getting a new job is called frictional unemployment.

From the options given above the third case where Justin quits his job in Texas and find a new and a better one in North Dakota. But it takes three months to get new job, so during these three months Justin's unemployment will come under frictional unemployment.

For clarification in first case Winny quits her job and goes on a trip but she is not looking for a job so this will be called as voluntary unemployment or not an unemployment. In the second case when 300 construction workers are fired due to recession in the economy then it is the case of cyclical unemployment.