Which type of unemployment is characterized by a temporary unemployment experienced by individuals between jobs?

Frictional unemployment is the type of unemployment that occurs when individuals are temporarily out of work while transitioning from one job to another. This can happen for various reasons, such as voluntary job changes, recent graduates entering the labor force, or individuals re-entering the workforce after a period of absence. It reflects the time it takes for a job seeker to find a position that matches their skills and preferences.

This form of unemployment is generally considered a natural and unavoidable part of a healthy economy, as it indicates mobility within the labor market. Workers are moving to better positions that hopefully provide more satisfaction or better remuneration, which can ultimately contribute to economic productivity.

In contrast, other types of unemployment such as seasonal unemployment are linked to specific times of the year, structural unemployment arises from mismatches between skills and job requirements, and real wage unemployment occurs due to wages being set above the market equilibrium, leading to a surplus in the labor supply. These distinctions highlight why frictional unemployment specifically concerns brief periods of job transition rather than broader economic mismatches or seasonal fluctuations.