Understanding Frictional Unemployment

Frictional unemployment arises from voluntary job transitions, reflecting a dynamic economy's strength.

Frictional unemployment

Calculating frictional unemployment involves dividing job seekers by the total labor force and multiplying by 100.


Entry of new labor market entrants and workers seeking better opportunities are major causes of frictional unemployment.

New Labor Market

Frictional unemployment can lead to talent retention challenges for employers while indicating a robust economy with better prospects.

Talent Retention

To mitigate frictional unemployment, improved information sharing, reduced biases, and increased job flexibility are crucial.

Information sharing

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