15.2 Job Search

15.2 a. Why Some Frictional Unemployment is Inevitable?

Why does frictional employment exist? It would be more logical for workers to hold on to their existing jobs until they find new ones. But often workers must move for unrelated reasons before they can look for new jobs. Frictional Unemployment is inevitable simply because the demand for goods and services by households varies over time, which in turn causes variations in the demand for the labor that produces those goods and services [10].

Example: When students graduate and join the labor force and start looking for jobs [10].

^{Frictional Unemployment [11]}

15.2 b. Public Policy and Job Search

The government provides various resources that give out information about job vacancies, education, training and self-employment assistance. Governments also have laws regarding continuation of health coverage during the unemployment. Governments also provide welfare, unemployment insurance, workers’ compensation and disability insurance to laid-off workers. The governments have laws regarding wrongful termination of employment [12].

Example: The US Government sponsors CareerOneStop helps with unemployment insurance benefits, job trainings, and finding a job [12].

^{Unemployment Benefits [13]}

15.2 c. Unemployment Insurance

Unemployment insurance is a small source of income for workers who have lost their jobs through no fault of their own. Workers who quit or who are self-employed are generally not eligible for unemployment insurance and must provide their own rainy-day funds to cover situations where no work is available [14].

Example: An individual files his claim in the state in which he worked and subsequently lost his job. After a person is approved, he must either file weekly or bi-weekly claims that test his employment situation and whether or not he remains eligible for payment [14].

^{Unemployment Insurance [15]}