Which term describes unemployment that happens when people change jobs?

Study for the SQA National 5 Economics Exam. Engage with flashcards and multiple choice questions, each featuring hints and comprehensive explanations. Prepare confidently for your exam!

Frictional unemployment refers to the temporary unemployment that occurs when individuals are in between jobs or are transitioning from one position to another. This type of unemployment is often short-lived and can arise from various reasons, such as individuals voluntarily leaving a job to seek better opportunities, moving to a different location, or entering the workforce for the first time. Frictional unemployment is a normal part of a healthy economy, as it reflects the dynamic nature of the labor market and the ongoing process of job matching.

In contrast, cyclical unemployment is linked to economic downturns and fluctuations in the business cycle, structural unemployment results from changes in the structure of the economy that lead to a mismatch of skills, and long-term unemployment refers to individuals who are unemployed for an extended period, typically over six months. All these forms of unemployment have distinct causes and consequences that differ from the transitional nature of frictional unemployment.

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