Why can we never expect frictional unemployment to be zero even when the economy is strong?

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Expert Solution

It can be mentioned that frictional unemployment is the unemployment where right people are not selected for the right jobs and it can never be zero even if the economy is strong because it would take time for the industries and companies to find the right person and right job and only has communication can reduce the issue but it cannot make the frictional unemployment 0 and that is the reason why in many cases we see many vacant jobs but still people remain unemployed on the whole and apart from that the economy continuously develops and What happens is that there is a shift from unskilled to skilled and with level the level of skill might mismatch the development criteria and because of the lack of people,companies are supposed to continue with the existing employees as a result of which frictional unemployment again exists with development and that is the reason why frictional unemployment can never be zero even in a developing economy or a strong economy

Rahul Sunny answered 3 weeks ago

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