Final answer:
Frictional unemployment involves temporary job transitions, whereas structural unemployment arises from a mismatch between workers' skills and job requirements. Economic growth usually leads to lower cyclical unemployment and highlights the natural rate of unemployment, consisting of frictional and structural types.
Step-by-step explanation:
Frictional vs. Structural Unemployment
Frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs, entering the workforce, or voluntarily moving for other personal reasons. Examples of frictional unemployment include a recent college graduate looking for their first job, or a person who has quit their job to find a better one.
Structural unemployment happens when there is a mismatch between the skills of the workforce and the needs of the economy. This can be due to technological changes, globalization, or other economic shifts. Examples of structural unemployment include factory workers losing their jobs to automation, or a decline in coal mining jobs due to shifts in energy production towards renewable sources.
After several years of economic growth, one would expect unemployment to be mainly due to the natural rate of unemployment, which includes frictional and structural unemployment, rather than cyclical unemployment. Cyclical unemployment is associated with economic recessions, and sustained growth generally reduces its prevalence.
The levels of frictional unemployment can vary based on communication about job prospects and individuals' willingness to relocate, which may be influenced by history and culture.