The article explores how capital investment affects job separation in a model of matching between workers and firms. By including capital investment, firms can better adjust to changes in productivity, leading to more significant fluctuations in the job market. The study shows that adding capital investment to the model improves its ability to explain fluctuations in unemployment and job openings in response to productivity changes. Additionally, the model can explain why job openings tend to increase during economic upswings, a pattern that previous models struggled to capture.