Which of the following types of unemployment occurs when individuals are temporarily out of work while transitioning between jobs?

Frictional unemployment occurs when individuals are temporarily out of work while they are transitioning between jobs. This type of unemployment is typically voluntary and reflects the time it takes for people to find new employment that matches their skills and preferences. It is a natural part of a healthy economy, as workers may leave one job to seek better opportunities, which leads to temporary phases of unemployment.

In contrast, structural unemployment arises from broader economic changes that result in mismatches between workers' skills and job requirements in the market. Cyclical unemployment is linked to the overall economic cycle, where job losses occur due to downturns in the economy. Seasonal unemployment is associated with variations in demand for labor at different times of the year, such as during holiday shopping periods or agricultural harvests. Therefore, frictional unemployment specifically captures the scenario of individuals between jobs, making it the correct choice in this context.