What is the type of unemployment characterized by individuals being in between jobs?

Frictional unemployment refers to the period when individuals are temporarily out of work while transitioning from one job to another. This type of unemployment is typically a normal part of the labor market and occurs for various reasons, such as recent graduates entering the workforce, individuals voluntarily leaving their jobs to find better opportunities, or those relocating for personal purposes. The key characteristic of frictional unemployment is that it arises from the voluntary movement of workers as they search for jobs that better align with their skills, preferences, or circumstances.

In contrast, structural unemployment results from changes in the economy that make certain skills obsolete, cyclical unemployment is tied to the economic cycle and overall demand for labor, and seasonal unemployment happens in industries that only hire at certain times of the year. Understanding these distinctions is crucial for analyzing labor market dynamics and implementing effective employment policies.