Editing Unemployment (section)

===Frictional unemployment===
{{Main|Frictional unemployment}}
[[File:US beveridge 2004 through fall 2010.gif|thumb|The [[Beveridge curve]] of 2004 [[vacancy (economics)|job vacancy]] and unemployment rate (from the US Bureau of Labor Statistics)]]

Frictional unemployment is the time period between jobs in which a worker [[search theory|searches]] for or transitions from one job to another. It is sometimes called ''search unemployment'' and can be voluntary, based on the circumstances of the unemployed individual. Frictional unemployment exists because both jobs and workers are [[heterogeneity in economics|heterogeneous]], and a mismatch can result between the characteristics of supply and demand. Such a mismatch can be related to skills, payment, work-time, location, seasonal industries, attitude, taste, and a multitude of other factors. New entrants (such as graduating students) and re-entrants (such as former homemakers) can also suffer a spell of frictional unemployment.

Workers and employers accept a certain level of imperfection, risk or compromise, but usually not right away. They will invest some time and effort to find a better match. That is, in fact, beneficial to the economy since it results in a better allocation of resources. However, if the search takes too long and mismatches are too frequent, the economy suffers since some work will not get done. Therefore, governments will seek ways to reduce unnecessary frictional unemployment by multiple means including providing education, advice, training, and assistance such as [[daycare center]]s.

The frictions in the [[labour market]] are sometimes illustrated graphically with a [[Beveridge curve]], a downward-sloping, convex curve that shows a correlation between the unemployment rate on one axis and the vacancy rate on the other. Changes in the supply of or demand for labour cause movements along the curve. An increase or decrease in labour market frictions will shift the curve outwards or inwards.