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, they have the essential need to earn money. To earn money, they must work either in areas related to their interests or qualifications. However, people will face different challenges during their job search sessions, such as many candidates competing for a vacant position; the salaries offered are lower than expected salaries and the economic crisis or falling which causes unemployment. Unemployment is what we will look at in this report. Dwidedi (2010) stated that unemployment is defined as few vacancies available to meet the number of people who want to work and can work based on the current salary they can get for the 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 from the fact that it takes time for workers to search for the job that best suits their tastes and skills” (p. 601). The frictional unemployment rate will never be zero and therefore full employment will never be achieved. New entrants, such as new graduates, and new entrants, such as housewives, will also lead to frictional unemployment. The duration of frictional unemployment is determined by unemployment insurance benefits and the speed of information (Mouhammed, 2011). According to Arnold (2011), the main cause of frictional unemployment is imperfect information, that is, the lack of information needed to immediately match a candidate to a vacant position. T...... middle of paper ......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 of unemployment and public policy. Journal of Applied Business and Economics, 12(5), 100-110.Sexton, R.L. (2008). Exploring the Economy (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 Today (7th ed.). Mason, OH: South-Western Cengage Learning. Walterskirchen, E. (1991). Unemployment and labor market flexibility: Austria. Geneva, Switzerland: International Labor Office.