Question

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called

1. structural unemployment

2. frictional unemployment

3. cyclical unemployment

Answer 1

Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called
ANSWER: 2) frictional unemployment
Frictional unemployment is the unemployment that occurs when people spend their time in looking for better job opportunities and the time taken in moving from one job to another. It is mainly voluntary in nature and it arises because of the time needed for people to find job openings.

Structural unemployment occurs when the person is unemployed because of the lack of demand for a type of labor when companies are looking for a certain type of worker.

Cyclical Unemployment is the unemployment that occurs because of changes in the business cycle. Therefore, when there is a recession,unemployment increases because demand for goods fall and there is less production which requires less employees. Similarly, when the economy improves, employment increases.