Question

How do frictional and structural unemployment differ?

Answer 1

Frictional unemployment occurs when individuals are in the process of changing jobs or searching for new ones, while structural unemployment is caused by a mismatch between skills and available job opportunities. Frictional unemployment is temporary, while structural unemployment is long-term.

Step-by-step explanation:

Frictional unemployment occurs when people are temporarily out of work because they are in the process of changing jobs or are searching for new ones. It is a natural part of the economy and is usually unavoidable. Examples of frictional unemployment include individuals who have recently graduated from college and are searching for their first job, or someone who has moved to a new city and is looking for employment in their new location.

On the other hand, structural unemployment is a result of a mismatch between the skills and qualifications of workers and the available job opportunities. It occurs when there is a long-term decline in demand for certain industries or occupations. For instance, the rise of automation and technology has led to structural unemployment in industries such as manufacturing, where jobs have been replaced by machines.

Answer 2

Structural Employment results from industrial reorganization, typically due to technological change, rather than fluctuations in supply and demand.

Frictional Unemployment on the other hand, is when a worker is in the process where they move from one job to another.

Hope this gives a better understanding.