frictional unemployment question (1 Viewer)

[austinbaric]

Does frictional unemployment include parents re-entering the workforce after having a child?

 

[spatula232]

I believe that structural unemployment is more so the UE between jobs that is unintentional; i.e. recently retrenched worker looking for job straight after being sacked and during the time period before he gets a new job, he is unemployed. Is there a particular reason, or just as an example?

 

[Ekman]

Does frictional unemployment include parents re-entering the workforce after having a child?

There is such a thing as paid parental leave, so when couples have a child, they are still considered employed as they still have a job. However if a couple decide to leave their jobs and become stay-at-home parents, then they aren't considered in the unemployment rate, as they are not looking for jobs. If they decide to look for jobs again, I guess they would be considered in the hidden unemployed, or the long-term unemployed, but most definitely not be considered frictional, as frictional refers to unemployment caused when labour moves between jobs, not when labour decides to take a break and come back again.

 

[Study_like_a_nerd]

Individuals on paid leave (i.e. maternity or paternity leave) are still included in the workforce. If the individual decides that they do not want to work they would not be considered unemployed as they are not included in the workforce; they come under the heading, "People who perform full time domestic duties." Even if they decide to re-enter the workforce, they would not be considered to be frictionally unemployed as they are not in the position of changing jobs after being unemployed.