Since layoff is necessary to allow obsolete firms to decline or disappear in favor of new firms that tend to conform to the changes of individual preferences, a frictional unemployment emerges.
Obviously, unemployment caused by regulations (e.g., minimum wage, unemployment benefits, labor unions) is considered as involuntary unemployment. Economists do not deny this. But some still subscribe to the idea that frictional unemployment could be labelled involuntary unemployment as well.
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