Chapter 23, Problem 1BCQ

To determine

The way in which services like Task Rabbit affect frictional unemployment.

Introduction: Frictional unemployment refers to the unemployment when workers are jobless, whether by their own or fired. It is the time period between leaving the old job and joining the new job. Frictional unemployment is the inevitable type of unemployment and one of the major components of natural unemployment.

Explanation of Solution

The matching of job seekers and employers through services like TaskRabbit does not affect frictional unemployment. As frictional unemployment is an inevitable type of unemployment. A limited level of frictional joblessness is generally innocuous also, may even be something to be thankful for. The economy is more gainful if workers take time to discover employment that is all around coordinated to their abilities. Workers who are jobless for a concise period while searching for the right job, does not encounter incredible hardship. In fact, when there is a low unemployment rate, a period of joblessness has a tendency to be very short, proposing that a significant part of the joblessness is frictional.

So, rather creating frictional unemployment, services like Task Rabbit helps to create more meaningful employment opportunities to the workers.