What type of unemployment occurs when an employee leaves one job to start another, with a gap in between?

The type of unemployment that occurs when an employee leaves one job to start another, with a gap in between, is known as frictional unemployment. This form of unemployment is generally short-term and reflects the time period individuals take to transition between jobs.

Frictional unemployment occurs for various reasons, including personal preference, relocation, or seeking better opportunities. It's a natural part of the labor market, as individuals often leave jobs to find positions that better match their skills or career aspirations. This transition period is important as it can lead to better job satisfaction and productivity in the long run.

In contrast, structural unemployment arises from a mismatch between the skills of the workforce and the needs of the job market, rather than the movement between jobs. Transitional unemployment, while it may sound similar, is not typically recognized as a formal category in economic terms and does not specifically describe this gap in employment between two jobs. Cyclical unemployment, on the other hand, is related to the overall economic cycle and occurs during downturns when there are fewer jobs available in the economy.

The correct identification of frictional unemployment thus highlights the natural movement of individuals within the job market and their quest for better employment opportunities.