Definition, Meaning & Synonyms

cyclical unemployment

noun

/ˈsɪk.lɪ.kəl ˌʌn.ɪmˈplɔɪ.mənt/

Definition

Cyclical unemployment is a type of unemployment that occurs during periods of economic downturns or recessions when the demand for goods and services decreases, leading to a reduction in the workforce.

Examples

During the recession of 2008, many workers experienced cyclical unemployment due to the decline in consumer spending.
As the economy recovers, those who faced cyclical unemployment may find new job opportunities in growing industries.

Meaning

It reflects the relationship between unemployment and the economic cycle. As the economy slows down, the demand for labor decreases, resulting in higher unemployment rates. Conversely, when the economy improves, cyclical unemployment typically decreases as more jobs are created.