5 Things You Should Know About Frictional Unemployment in the Tech Industry


Frictional unemployment is a term that describes the job seeker who applies for a job and doesn’t get an offer. Frictional unemployment means that every time you apply for a new job in the same field, it can get harder to get hired because of your existing work history. There are ways to combat this issue so that you aren’t stuck with a pile of rejection letters on your desk.

1. Frictional unemployment is real and it’s everywhere

It’s a word that gets thrown around a lot, but what does it really mean? You’ve probably heard the term “frictional unemployment” before—especially if you’re in the tech industry. If your job is hiring, or if you’re looking for work, then it’s worth knowing what frictional unemployment is and how it affects those who are trying to find a new position in the field.

5 Things You Should Know About Frictional Unemployment in the Tech Industry

Frictionally unemployed people may have skills that are out of date, they might be too picky about where they work next (maybe they want more money or better perks), or perhaps they just don’t have enough experience yet to feel comfortable applying for higher-level jobs. Frictional unemployment can happen at any time during someone’s career path; it doesn’t just affect tech workers!

But despite all this talk about “friction,” remember: Frictional unemployment isn’t something that only happens during recessions or bad economic times—it happens all over the place! The most common example is when someone moves from one city/state/country with friends and family who’ve already established themselves somewhere else; this person will likely take some time before finding another job because he/she wants time off after moving away from home (and those close relationships).

2. Frictional unemployment is not a bad thing

Frictional unemployment is not a bad thing. It’s just a natural part of the labor market and a normal part of the job search process. If you’ve ever been on Tinder, you know it can take hours to find “the one.” When you’re trying to find your dream job, sometimes it takes weeks or even months before you figure out exactly what it is you’re looking for and then finally land an interview. Frictional unemployment is just part of that process—it doesn’t mean anything’s wrong!

Another way frictional unemployment differs from structural unemployment is in its duration: if we’re talking about frictional unemployment, then by definition it isn’t permanent; after all, once people do find their dream jobs they stop searching—they stop being unemployed!

3. The tech industry has a severe frictional unemployment problem

Now that you understand the basics of frictional unemployment, it’s time to tackle what happens when this type of unemployment is present in a specific industry. And no, I’m not talking about how the tech industry has a big frictional unemployment problem.

If you’re reading this article, then you likely already know something about the tech industry and its rapid growth—not just in terms of job postings but also salaries and other benefits as well. But do you know why there are so many more jobs available now than ever before? It’s simple: people who work in this field can command higher salaries than those who don’t.

Because those salaries are higher, it means that if someone wants to switch from one company or role to another within this sector (or even outside), they’ll need some time for training before becoming fully productive again at their new job or business venture.

4. The more skilled the worker, the higher the impact of frictional unemployment

The fourth thing you should know about frictional unemployment is that it’s a bigger issue for skilled workers than unskilled ones. Think of all the professions that require training and education: dentists, doctors, engineers…the list goes on. These workers are typically more likely to leave their jobs as soon as an opportunity presents itself. For example, if an engineer finds a better-paying job with a different company and has no intention of staying at his current company forever anyway, he’s going to take the higher salary offer because he needs the money now—it doesn’t matter if this means that his replacement will be harder to find or not. On top of this, employees who are highly skilled tend to have greater negotiating power than those who aren’t because they’re more likely able (and willing) to walk away from their current employer if they don’t get paid what they feel like they’re worth when looking at all available options.

5. Companies can reduce frictional unemployment in their organization

The fifth and final point is that companies can reduce frictional unemployment in their organization. Here’s how:

  • Employee satisfaction. If your employees are happy, they will stay with you longer. One way to keep them satisfied is by keeping a good work-life balance so that they don’t feel burnt out from the job or overworked. Another strategy is giving them feedback on what they need to improve upon and making sure that their goals align with those of the company; if there’s not a connection between these two things, then it’s unlikely that an employee will stick around for long.
  • Employee retention/motivation at work: This point goes hand-in-hand with employee satisfaction—if you want people to stay at your workplace for longer than six months (or even just one year), then it’s important that everyone feels like they’re doing meaningful work with respect from management and coworkers alike

Frictional unemployment should be understood and addressed by managers

But you should also know that frictional unemployment is real and it’s everywhere. Frictional unemployment is not a bad thing; it can actually be quite useful. For example, if you’re looking for a job in the tech industry and want to find one as quickly as possible, then you need to understand how frictional unemployment works.

The more skilled a worker is with their tools or trade—the higher their level of education—the greater impact on their earning potential from frictional unemployment..


The tech industry is a great place to work, and it’s only getting better. But with all the new challenges that come from rapid growth, companies need to be aware of how frictional unemployment affects their employees. This means increasing their focus on training programs for new hires and investing more time into hiring people who are already trained. By doing this, companies can ensure they have the best possible team members in place when they need them most!