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by Edwin Mwai|2012
The period of frictional unemployment refers to the time frame when an individual is undergoing a transition from one job to another job that is seen as being more desirable given the perks that come with it. Due to the fact that it is associated with looking or searching for better employment opportunities, it has also come to be used interchangeably with search unemployment.
Frictional unemployment may be as a result of employers as well as employees, the two being susceptible to the forces of supply and demand of the work force. If there is even the slightest mismatch between these two, the result is frictional unemployment. This phenomenon does not last forever, as individuals become unemployed only for better employment opportunities to present themselves. In a nutshell, frictional unemployment is the transitional unemployment which comes naturally in the event that an individual is making a transition from one job to a more desirable one.
Needless to say, this form of unemployment is a phenomenon that will never end, even in the developed world in the strictest sense. There is no economy that can be considered as having reached the state of full employment thus the existence of frictional unemployment. Change is inevitable and it is only human for one to quit one’s current job for a more better job.
Some situations that better illustrate the phenomenon of frictional unemployment may include fresh graduates looking for employment opportunities and passing out on them until a suitable offer presents itself, the non hiring of new employees by companies due to the existence of a mismatch in the job opportunities available and the desired skills or many employers who are forced by the seasonal nature of their business to hire on a temporary basis leading to frictional unemployment during the off-peak season, forcing the employees to search for other suitable job opportunities.
Causes of Frictional Unemployment
There are a number of causes of frictional unemployment some of which include: One of the causes are the numerous employees who are awaiting entry back to their jobs like new mothers say on maternity leave. The other cause of frictional unemployment which is seen as the among the primary sources of this form of unemployment are factors that have to with the skills, location, the work environment, preference, remuneration et cetera which are seen to have an effect of bringing a sense of general dissatisfaction among the employees. The other cause of frictional unemployment happens when there are new graduates entering the job market, and who may not be able to be absorbed in the work force immediately due to some eligibility criteria set by the employer in terms of years of experience and skills possessed. The last cause of frictional unemployment may be triggered by the unique relationship between the employers and their employees which is seen as being heterogeneous to some extent.
Things to do to Reduce Frictional Unemployment
There are some things that are said to cause a reduction in the levels of frictional unemployment including the removal or reduction in discrimination in employment, the provision of value laden and state of the art training facilities from elementary to institutions of higher learning, reduction in the difference between the net and gross income, action being taken and punishment being meted on any biased approach present in the work environment when it comes to the location of the job. Other things to do to reduce frictional unemployment include the provision of quality educational advice to students in institutions of higher learning with regard to the job and market expectations in terms of skills and job demands as well as the provision of extra facilities to not only enhance availability but also promote flexibility.
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