What is the difference between friction and structural unemployment?

The difference between friction and structural unemployment can be deducted from the definition of two types of unemployment. While friction unemployment affects the type of unemployment caused by peace between employment, structural unemployment is the result of a decline in demand for specific goods or services that are typical of industry. Of course, this is the generalization of these two terms, because there are other variables that also define and distinguish two forms of unemployment from each other.

friction unemployment is often voluntary is because it often occurs as a result of the desire of already employed people to find other jobs. They can resign from their work when they move to other cities in finding better jobs, or they can simply experiment with different types of jobs as they try to find their place. Froper unemployment often occurs among recent graduates because they seek to find jobs after graduation. This is unlike the difference in TřECE and structural unemployment, with structural workers more common among established workers.

Structural unemployment can be caused by the introduction of new technology into industry, leading to a reduction in the needs of the services of some employees. For example, the introduction of automation in customer care has reduced the need for the services of customer service agents in the first line. Automated pre -recorded computer messages now correspond to calls and are transferred to human agents only if customers are too complicated for available options. In a sense, this shows the difference between friction and structural unemployment, because structural unemployment is involuntary, while friction employment is usually voluntary.

Sometimes, when there is a reduction in demand for goods produced by a company of view to variables, such as changes in the customer's preferences, competition and inYSOKé costs, the company will look for ways to save money, including the release of some workers. It is a form of structural unemployment and still shows the difference between friction and structural unemployment because it is involuntary. The cause of friction unemployment is sometimes insufficient communication regarding the availability of jobs, which means that job applicants do not know that there are work in their preferred industries. The time between the two types of unemployment also varies and depends on factors, such as the availability of jobs and the ability of workers to adapt to new trends in their selection industry.