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

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

2. can structural unemployment ever be zero(Explain)

Solutions

Expert Solution

Frictional Unemployment

It occurs when there is a communication gap between employers and potential employees. This is a type of unemployment rate usually occurs because of market turnovers.

Example:

It can be referred to as someone who leaves their current job for another one. Meaning, they're temporarily unemployed.

Talking about another example, a college graduate who is ready to enter into job market, but is yet to find his/her job.

Therefore Frictional Unemployment results from temporary reasons.

Frictional Unemployment is a part of the unemployment rate which has less importance and moreover though the unemployment rate is low, it will never be zero. This is called as "natural rate".

Structural Unemployment

It is state of unemployment when a worker does not find any job to match his/her skill. It arises because of mismatch between the jobs available and skills acquired by the employee.

Structural Unemployment can stop when there are no technological advancements. But it is not possible because the world is constantly evolving and everyday new types of jobs are created, while the old jobs are destroyed.

Hence Structural Unemployment cannot ever be zero because it is inevitable in nature.

Structural Unemployment can be zero only if and when the entire unemployment reaches zero and it is not practically possible.

Rahul Sunny answered 1 year ago

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