People need money to buy all kinds of goods and services they need every day, and sometimes for goods or services they want to own. To achieve this goal, they have the essential need to earn money. To earn money, they must work in fields related to their interests or qualifications. However, people will encounter different challenges during job search sessions, such as many candidates competing for a job vacancy; the salaries offered are lower than the expected wages and the economic crisis or downturn that causes unemployment. Unemployment is what we will look at in this report. Dwidedi (2010) stated that unemployment is defined as there are not many vacant jobs available to satisfy the number of people who want to work and can work based on the current wage they can get for a job they have chosen to work for . There are four main types of unemployment: frictional, structural, cyclical and seasonal unemployment. The first type of unemployment is frictional unemployment. Mankiw (2008) states that frictional unemployment is “unemployment that results because workers need time to search for jobs that best suit their tastes and skills” (p. 601). The frictional unemployment rate will never be zero, so full employment will never be achieved. New arrivals, such as recent graduates, and returnees, such as housewives, will also lead to frictional unemployment. The period of frictional unemployment is determined by unemployment benefits and information velocity (Mouhammed, 2011). According to Arnold (2011), the main cause of frictional unemployment is imperfect information, which means the lack of information needed to immediately match a candidate to a job vacancy. T...... half of the sheet ......cs. New York, NY: McGraw-Hill Irwin.McEachern, W.A. (2012). Macroeconomics: A Contemporary Introduction (10th ed.). Mason, OH: South-Western Cengage Learning.Moomaw, R.L., Oson, K.W., Applegate, M., & McLean, B. (2010). Economy and contemporary issues (8th ed.). Mason, OH: South-Western Cengage Learning.Mouhammed, A.H. (2011). Important theories on unemployment and public policies. Journal of Applied Business and Economics, 12(5), 100-110.Sexton, R.L. (2008). Exploring economics (6th ed.). Mason, OH: South-Western Cengage Learning.Tragakes, E. (2012). Economics for the IB Diploma (2nd ed.). Cambridge, UK: Cambridge University Press.Tucker, I. (2010). Macroeconomics for today (7th ed.). Mason, OH: South-Western Cengage Learning.Walterskirchen, E. (1991). Unemployment and labor market flexibility: Austria. Geneva, Switzerland: International Labor Office.