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

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 6 months ago

1. can frictional unemployment ever be zero.(Explain) 2. can structural unemployment ever be zero(Explain)

1.a) Please explain the reason why frictional unemployment occurs in the economy. b) Frictional unemployment occurs...

1.a) Please explain the reason why frictional unemployment occurs in the economy. b) Frictional unemployment occurs even when wages are flexible and there are enough jobs to go around. Provide two reasons why we have frictional unemployment (In the class, I introduced 5 reasons why we have frictional unemployment). c) Select one of three reasons why we have wage rigidity and explain why it causes structural unemployment in the economy.

"A healthy economy can never have a zero unemployment rate." Do you agree or disagree with...

"A healthy economy can never have a zero unemployment rate." Do you agree or disagree with this statement? Explain. At least 175 words

QUESTION 2: UNEMPLOYMENT AND INFLATION Even when the economy has a strong economic growth rate there...

QUESTION 2: UNEMPLOYMENT AND INFLATION Even when the economy has a strong economic growth rate there will always be some unemployment in the economy. (i) Identify the types of unemployment that are being referred to above. (ii) Discuss an appropriate government policy response to decrease the unemployment types identified in (i). 300-400 words please

UNEMPLOYMENT Pick an industry that typically has strong cyclical (peaks when the economy is strong) or...

UNEMPLOYMENT Pick an industry that typically has strong cyclical (peaks when the economy is strong) or counter-cyclical (peaks when the economy is weak) employment. Find an online article that supports your identification of the industry. Why do you suppose this industry has cyclical (or counter-cyclical) employment? Example: The Secondary Education Industry has a strong COUNTER-Cyclical employment relationship. When the economy is very strong, individuals enter the workforce directly and bypass education. However, when the economy is weak and people lose...

Eliminating frictional unemployment would be good for the economy. true or false

Define: Full employment Frictional employment Structural employment 1. Why are frictional unemployment and structural unemployment consistent...

Define: Full employment Frictional employment Structural employment 1. Why are frictional unemployment and structural unemployment consistent with full employment?

Are the costs of unemployment more severe for frictional or structural unemployment? Why? Are the costs...

Are the costs of unemployment more severe for frictional or structural unemployment? Why? Are the costs of unemployment more severe for frictional or structural unemployment? Why?

Why EI (Employment Isurance) increase a frictional unemployment? Why not cyclical unemployment, the number of discouraged...

Why EI (Employment Isurance) increase a frictional unemployment? Why not cyclical unemployment, the number of discouraged workers and structural unemployment?

1. What is the difference between "cyclical unemployment" and "frictional unemployment"? Which are we generally referring...

1. What is the difference between "cyclical unemployment" and "frictional unemployment"? Which are we generally referring to when the phrase "unemployment" is used in the news, etc.? 2. Do you think technological advances will add to "structural unemployment" in the future? Why or why not?

Question