Which term refers to unemployment that recurs to workers entering and existing the job market?

Frictional unemployment is the term that describes the temporary transitions that occur when workers are entering or exiting the job market. This type of unemployment is often a natural part of the job search process, as individuals may leave a job in search of a better opportunity or enter the workforce for the first time. It reflects the time it takes for people to move between jobs, careers, or geographic locations.

Workers may experience frictional unemployment as they seek positions that better match their skills, preferences, or lifestyle. For instance, recent graduates looking for their first job, or individuals moving to a new city and needing time to find employment, are examples of frictional unemployment. It is typically short-term and considered a normal part of a healthy economy, where job turnover occurs.

In contrast, other types of unemployment mentioned are distinct from frictional unemployment. Cyclical unemployment is linked to economic downturns, structural unemployment relates to changes in the economy that create a mismatch between skills and job opportunities, and seasonal unemployment occurs due to fluctuations in demand for certain jobs depending on the season or time of year. Understanding these distinctions helps in analyzing the labor market dynamics effectively.