Which type of unemployment occurs when people are unemployed between finishing one job and starting another?

• A. Seasonal unemployment
• B. Cyclical unemployment
• C. Frictional unemployment
• D. Structural unemployment

Answer: (C)

Frictional unemployment is the short-term unemployment that happens as people move between jobs. When someone finishes one job and is in the process of searching for the next, they are temporarily without work. It's a natural part of a dynamic labor market and usually lasts a short period because people tend to find new employment fairly quickly as vacancies exist and information about opportunities flows. This differs from seasonal unemployment, which follows regular yearly patterns; cyclical unemployment, which comes from a downturn in the economy; and structural unemployment, which arises from a long-term mismatch between skills and available jobs. So the situation described fits frictional unemployment.