What type of unemployment occurs when individuals voluntarily leave their jobs to seek better opportunities?
Understand the Problem
The question is asking to identify the type of unemployment that arises when individuals choose to leave their jobs in pursuit of better job opportunities. It requires knowledge of different unemployment types.
Answer
Frictional unemployment.
The type of unemployment that occurs when individuals voluntarily leave their jobs to seek better opportunities is called frictional unemployment.
Answer for screen readers
The type of unemployment that occurs when individuals voluntarily leave their jobs to seek better opportunities is called frictional unemployment.
More Information
Frictional unemployment is considered a normal part of a healthy economy. It is typically short-term as individuals look for jobs that better suit their skills and desires.
Tips
Sometimes frictional unemployment is confused with structural unemployment, but the latter involves a mismatch of skills in the labor market rather than voluntary movement.
Sources
- A Guide to Frictional Unemployment for Employers and Employees - coursera.org
- Frictional vs. Structural Unemployment: What's the Difference? - investopedia.com
- Frictional Unemployment | Higher Rock Education - higherrockeducation.org
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