Give differences between structural and frictional unemployment

Give differences between structural and frictional unemployment

  • Unemployment that is frictional is chosen, whereas that which is structural is typically forced.  People who voluntarily quit their jobs and then don’t find new work right away usually fall into the frictional category. Those who are fired, laid off, or otherwise terminated are usually seen to be in the structural class.

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  • Structural unemployment refers to a situation where people become unemployed due to changes in the structure of the economy e.g. retrenchment while frictional unemployment refers to short-term unemployment that occurs during the time when labour leaves one job to another.
  • Structural unemployment is brought about due to the exhaustion of some inputs for example minerals such as copper while frictional unemployment is due to working conditions which force labour to look for new jobs.
  • Structural unemployment can cause by an upgrade in technology/ automation while frictional unemployment is caused by discontents
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