What type of unemployment occurs when there is a gap between leaving one job and starting another?

The type of unemployment that occurs when there is a gap between leaving one job and starting another is known as frictional unemployment. This form of unemployment is typically short-term and results from the normal labor market turnover, where individuals are transitioning between jobs. People may leave a job voluntarily for various reasons, such as pursuing better opportunities, relocating, or personal circumstances. During this transition period, they are temporarily unemployed as they seek new employment.

Transitional unemployment, as suggested in the chosen answer, is not a widely recognized term in economic literature; thus, it does not accurately describe this phenomenon. The other types of unemployment listed represent different causes: technological unemployment arises from advancements in technology leading to job displacement, while structural unemployment is due to fundamental changes in the economy that create a mismatch between the skills of the workforce and the needs of employers. Frictional unemployment, in this context, clearly captures the essence of being between jobs for a short duration.