Frictional unemployment is the type of unemployment which exists in any economy due to people being in the process of moving from one job to another. It  occur when people are switching between jobs or are redundant and searching for jobs.

For example, if you graduate from university, you can’t necessarily expect to find a job straight away which matches your skills. This period of searching for a job is known as frictional unemployment.

One way this type of unemployment can be reduced is by retaining workers. They are some jobs that are temporary and considered part time. Workers are laid off at completion of the job, which means the workers are back to being unemployed. But by retaining workers after completion of the task, this type of unemployment will be reduced.