Which type of unemployment is associated with new entrants in the labor market, such as recent graduates?

Frictional unemployment occurs when individuals are temporarily unemployed while they transition between jobs or enter the labor market for the first time. This type of unemployment is most commonly seen among recent graduates as they leave school and actively seek work. It reflects the natural movement of people searching for positions that match their skills or preferences, indicating a healthy economy where labor is dynamic and people have the freedom to find better opportunities.

In the context of new entrants like recent graduates, frictional unemployment signifies the period during which these individuals search for their first professional role after completing their education. This time frame is typically brief, as they begin to get hired once they find suitable positions that fit their career aspirations. This contrasts with other types of unemployment, which may be more persistent or structural in nature.