FRICTIONAL UNEMPLOYMENT

Frictional unemployment depends on the duration and the imperfection of the matching process between vacancies and workers searching for a better job. Such a mismatch can be related to many factors. Among others, it can depend on personal skills, remuneration, work-time, and location. The rate of frictional unemployment depends on the frequency and the period of time spent by workers in switching from one job to another. It follows that frictional unemployment is a short-term variable that can be reduced but not totally eliminated via the implementation of structural policies aimed at reducing the inefficiencies and the obstacles to the free functioning of the labour market, as well as the introduction of more efficient services providing a better allocation of resources (i.e. employment offices).

Editor: Bianca GIANNINI
© 2011 ASSONEB