Frictional unemployment occurs when job seekers lack information about where jobs exist.
Frictional unemployment refers to the temporary unemployment that occurs when workers are in the process of transitioning between jobs. It is a natural and inevitable part of a healthy labor market, as workers may leave their current jobs to seek better opportunities or may be entering the job market for the first time.
In many cases, job seekers may not know about all the available job opportunities, making it difficult for them to find suitable employment. This lack of information can be due to various reasons, such as not having access to the right networks, not knowing where to look for job postings, or not being aware of the skills that are in demand in the job market.
Therefore, frictional unemployment occurs when workers are between jobs and are looking for new employment opportunities, but may not be aware of all the available opportunities due to a lack of information.