The unemployment which exists in any economy due to people being in the process of moving from one job to another.
- With unemployment at 4.4% of the available workforce, the country is scarcely above what economists term ‘frictional unemployment’.
- If unemployment was previously kept to zero by forcing everyone to keep a job even if they didn't want it, it should rise, even in a madly growing economy, as frictional unemployment is allowed to grow to its natural rate.
- There is likely to be some frictional unemployment even when there is technically full employment, because most people change jobs from time to time.
Definition of frictional unemployment in:
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