Frictional unemployment refers to the short-term and temporary unemployment that occurs when workers are transitioning between jobs, often actively searching for new opportunities that better match their skills and preferences. It is a natural part of a dynamic labour market and does not indicate economic inefficiency.

• Search unemployment: This arises when workers reject initial job offers to spend time seeking more suitable positions that offer better pay, conditions, or career prospects.
• Casual unemployment: Experienced by workers in irregular employment patterns, such as actors, construction workers, or freelancers, who face intermittent periods without work between assignments.
• Seasonal unemployment: Occurs due to fluctuations in labour demand tied to specific times of the year, for example, higher demand for lifeguards in summer leading to joblessness in off-seasons.

Note: While sometimes classified separately, voluntary unemployment—where individuals choose not to accept available jobs at prevailing wage rates—can contribute to frictional unemployment as workers hold out for preferred roles.