Certified Supply Chain Professional (CSCP) Practice Exam

What type of unemployment is characterized as “normal” during job transitions?

1. Cyclical unemployment

2. Frictional unemployment

3. Structural unemployment

4. Seasonal unemployment

The correct answer is: Frictional unemployment

Frictional unemployment is considered "normal" during job transitions because it occurs when individuals are temporarily out of work while they are searching for new jobs that better match their skills or circumstances. This type of unemployment reflects the time it takes for people to leave one job and find another, as well as the voluntary nature of this transition. It's often a healthy sign of a dynamic labor market where workers are moving to seek new opportunities, which can lead to better job satisfaction and productivity. In contrast, cyclical unemployment is related to the economic cycle, structural unemployment arises from a mismatch between workers' skills and the demands of the job market, and seasonal unemployment occurs due to predictable fluctuations in demand for labor at certain times of the year. Each of these types indicates different economic conditions or labor market challenges, whereas frictional unemployment highlights the active role of individuals in the labor market.