Macroeconomics Unemployment Example Assessment

Hungary highly suffers from frictional unemployment, which indicates that new people entering the open Hungarian labour market are not able to find new workplaces as fast. The article mentions, that "The number of economically active people rose by 10k in one month, but only half of them were able to find a job..." This may occur due to high-entry barriers of jobs in Hungary or people striving to get higher-paid jobs, thus taking longer to find one. There is also the possibility
of firms and employers abstaining to hire people. However, frictional unemployment is present in
any economy. In fact, rising frictional unemployment may indicates that the citizens are striving to
achieve better positions, and can be beneficial to the economy in the long run. Nonetheless, there are ways governments attempt to reduce frictional unemployment, arguing that people may not
have enough incentive to look for a job and may be living off unemployment benefits…