In economics there’s a notion that unemployment can be deconstructed into three parts: cyclical, frictional, and structural.
Cyclical unemployment is a result of the business cycle, the natural ups and downs of the economy. It’s largely out of our control and takes everyone with it.
Frictional unemployment happens when we graduate from college or leave a prior job; there’s a period of transition while we find the right match. Frictional unemployment is a byproduct of the process and completely natural.
Structural unemployment happens when our systems don’t provide workers with the skills our economy needs. Heard that one about jamming a square peg into a round hole? It’s like that.
This model for unemployment adapts nicely to how we think about all of our problems:
- Is the problem cyclical? Is the situation fundamentally good but everyone is struggling as a result of an unforeseen downturn?
- Is the problem frictional? Are you in a part of the process which is naturally difficult, either because you’re just starting or in transition?
- Is the problem structural? Are you fundamentally mismatched for where you are? Are you a square peg trying to put yourself into a round hole?
Cyclical and Frictional issues are normal, when they happen we batten down the hatches and ride the wave. Trouble comes when problems are structural, often because they’re obfuscated by layers of cyclical and frictional problems. This makes them hard to identify at best.
If all of your cyclical and frictional issues were lifted would you be happy and at peace with where you are? If no, consider finding a new hole, a new place.