Certified Supply Chain Professional (CSCP) Practice Exam

Which statement about frictional employment is accurate?

1. It is always high during recessions

2. It is temporary and often voluntary

3. It affects mostly unskilled workers

4. It indicates a failing economy

The correct answer is: It is temporary and often voluntary

Frictional employment refers to the temporary unemployment that occurs when individuals are transitioning between jobs, often voluntarily. This type of employment arises as people leave their current positions for various reasons, such as seeking better opportunities, changing careers, or moving to a new location. It is typically short-term, reflecting the normal dynamic nature of the labor market as individuals explore new job prospects that better align with their skills and career goals. The nature of frictional employment highlights that it's a normal part of a healthy economy, rather than a sign of economic failure. During periods of economic stability or growth, frictional unemployment may rise as more workers feel empowered to seek new opportunities. This contrasts with other forms of unemployment, like cyclical unemployment, which is directly tied to the economic downturn or recession. In this context, the other statements do not accurately depict frictional employment. For instance, it is not always high during recessions; instead, it tends to decrease as jobs become scarce. While it can affect workers of all skill levels, it is not limited to unskilled workers. Lastly, frictional employment does not imply that the economy is failing; rather, it reflects a functioning job market where workers are consistently looking for roles that best match their capabilities and aspirations.