What type of unemployment occurs due to workers transitioning between jobs?

Frictional unemployment is the type of unemployment that occurs when workers are in between jobs or are in the process of transitioning from one position to another. This form of unemployment typically arises from voluntary circumstances, such as individuals leaving a job to pursue a new opportunity or fresh graduates entering the workforce for the first time. It reflects the natural flow of labor as people seek roles that better match their skills, interests, or career goals.

Frictional unemployment is generally seen as a normal part of the labor market and is typically short-term in nature. It can also be influenced by conditions such as the time taken to find a suitable job or the geographic mobility of workers seeking employment.

In contrast, structural unemployment results from shifts in the economy or changes that affect specific industries or job functions, while cyclical unemployment is related to the overall economic cycle, such as recessions and booms. Seasonal unemployment directly relates to changes in demand in specific industries during certain times of the year. These other types of unemployment do not specifically capture the essence of individuals transitioning between jobs as frictional unemployment does.