Which economic phenomenon refers to the temporary unemployment individuals face when changing jobs?

Frictional unemployment refers to the short-term unemployment that occurs when individuals are transitioning from one job to another. This type of unemployment is often considered a natural part of the labor market, as it reflects the time it takes for workers to search for and secure a new employment opportunity that better matches their skills, interests, or career goals. It can arise due to various reasons, such as a person relocating, pursuing education, or simply seeking a better job fit.

In contrast, seasonal unemployment occurs when individuals are out of work due to seasonal changes in demand for certain types of labor, such as agricultural workers during off-seasons. Structural unemployment results from long-term changes in the economy that affect certain industries, leading to a mismatch between the skills of the workforce and the needs of employers. Cyclical unemployment is associated with downturns in economic activity, such as recessions, when demand for goods and services decreases, leading to job losses.

Therefore, the correct identification of frictional unemployment highlights its role in the normal functioning of labor markets, emphasizing the fluid nature of employment as individuals move between jobs.