00:01
Here we're taking a look at a concept of unemployment known as job quits, which most of us are probably familiar with.
00:07
Though as the bls defines it, it is a voluntary separation initiated by an employee.
00:12
We'd like to define this in terms of its unemployment classification.
00:16
So we know that we have three different classifications for unemployment.
00:19
That is frictional, structural, and cyclical.
00:22
Defining these real quick, we know that frictional is just a normal occurrence within unemployment, right? people can maybe unemployed because they choose to be unemployed or because they just want to take some time off or they want to find a more satisfying job, right? structural unemployment exists when there's a mismatch of skills.
00:40
So this would be when somebody's skills that they, a skill set that they currently have is no longer useful within an industry and they're forced to learn new skills in order to find another job.
00:51
Now, cyclical unemployment, this just occurs during an economic downturn.
00:54
So that is when firms can no longer afford to have whatever employees that they do have...