Cause-Effect

Frictional unemployment results from temporary transitions made by workers and employers , or from workers and employers having inconsistent or incomplete information ( Frictional Unemployment . This type of unemployment comprises workers who are moving from one job to another and spend a certain amount of time looking for a new job which satisfies their personal criteria . Naturally , a person in between jobs spends resources such as time and money in to acquire information on potential employment opportunities . A portion of the country 's unemployment figures actually accounts for frictional unemployment along with other

types of unemployment and is part of a healthy economy (Moffatt . There are four main causes for the existence of frictional unemployment in the economy and all relate to inconsistent or incomplete information in regard to the employment opportunity (Park 10

Differing abilities and preferences in workers leads to frictional unemployment . Some jobs may be clerical in nature and require only a limited amount of thought and decision-making , such as janitorial work On the other hand , being the CEO of a multinational company requires superior decision-making skills and amazing insight not just of the company itself , but on the industry and economy as well . Some workers would have abilities and skills suited for the former , while some may have considerable faculty for the latter . Moreover , workers who could potentially be the latter would opt , nevertheless , to do nothing more than janitorial work

For example , a person who has taken up international relations as a collegiate degree soon finds employment in a diplomatic mission upon graduation . However , in the course of the mission , the newly hired finds that marketing is an infinitely more interesting subject matter after having established some working relations with marketing professionals . The diplomat mulls over the new insights gained on a career in marketing , and a decision was made to seek an employment opportunity more in line the new-found interest . Cases such as these illustrate how employment opportunity preferences can cause frictional unemployment , and , as Moffatt mentioned in his article , it is the price paid for people to chase their dreams

Another main factor that drives frictional unemployment is that jobs have different skill requirements . Some jobs may be so specialized as to require a very specific set of skills , hence limiting the number of potential candidates to a select few . For example , a job might require a potential candidate to have years of training as a quantum physicist with a solid background in applying such knowledge to risk management It would take time to find a suitable candidate to fill the post , and to find one such candidate that would be wont to spend a considerable background in quantum mechanics and apply such concepts to risk management . When the post requires very specific knowledge and ability it takes more time to create an acceptable match between the employment opportunity and potential employee

The world might be getting smaller due to advances in transportation and communications technology , but geographically , the world is still a big...