Question

The term that applies to the situation in which employees are terminated or empty positions are left unfilled once someone leaves an organization is ___________.

Answer 1

The term used to describe the level of unemployment seen even in a healthy economy is 'frictional unemployment.' It refers to the time lag in matching job seekers with new jobs and is considered a natural part of a dynamic labor market.

Step-by-step explanation:

The term that describes the remaining level of unemployment that occurs even when the economy is healthy is known as frictional unemployment. This phenomenon takes place because even in a dynamic and healthy market, there will always be a natural time lag between people leaving jobs and finding new employment.

Factors contributing to frictional unemployment include workers taking the time to find a job that best fits their skills and preferences, or potentially relocating to a new area for work. While frictional unemployment indicates that job seekers and vacancies exist, it highlights the necessary process of matching the right individuals with the right jobs, which is not instantaneous.