Which type of unemployment occurs when individuals are transitioning between jobs?

Frictional unemployment refers to the temporary period when individuals are transitioning between jobs. This type of unemployment arises from the time it takes for workers to search for and find new employment that matches their skills and preferences. It is often considered a natural part of the labor market, as people may leave jobs for various reasons—including seeking better opportunities, relocation, or entry into the workforce after completing education.

In contrast, structural unemployment is related to changes in the economy that create a mismatch between the skills of the workforce and the skills needed for available jobs. Cyclical unemployment is tied to the economic cycle, where unemployment rises during economic downturns. Seasonal unemployment occurs when jobs are not available at certain times of the year, often seen in industries like agriculture, tourism, or retail, where demand fluctuates based on the season. Each type of unemployment has different causes and implications, but frictional unemployment specifically addresses the transitional phase workers experience when moving from one job to another, making it the correct choice in this context.