Frictional and structural unemployment comprise ___ unemployment.
The correct answer is:
B) Economic
Frictional unemployment occurs during a period when workers are searching for new employment or transitioning from their old jobs to new jobs. It is considered voluntary unemployment because workers choose to remain unemployed rather than take the first job they are offered. Thus, frictional unemployment is usually present in an economic system because some people always search for new jobs.
Contrary to frictional unemployment, structural unemployment is a type of long-term unemployment caused by shifts in the economy. It occurs when there is an oversupply of jobs and people are willing to work, but the people searching for work are not qualified for these jobs. Some causes of structural unemployment are technological advances and decline in an industry.
