Which type of unemployment arises when individuals are temporarily out of work while transitioning between jobs?

The type of unemployment that occurs when individuals are temporarily out of work while transitioning between jobs is called frictional unemployment. This happens when people leave one job to look for another that might better fit their skills or preferences. For example, if a teacher decides to leave their school to find a position at a different school that offers more opportunities for growth, they may be unemployed for a short time while searching for that new job. Frictional unemployment is usually considered a normal part of a healthy economy because it reflects the movement of workers seeking better employment. Therefore, it is generally short-term and not a sign of economic trouble.