ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -US unemployment rate, 1990-2022. The increase in unemployment during recessions (shaded) is called cyclical unemployment.

Detailed explanation-2: -Cyclical unemployment is a type of unemployment where labor forces are reduced as a result of business cycles or fluctuations in the economy, such as recessions (periods of economic decline).

Detailed explanation-3: -Cyclical unemployment is the impact of economic recession or expansion on the total unemployment rate. Cyclical unemployment generally rises during recessions and falls during economic expansions and is a major focus of economic policy.

Detailed explanation-4: -Cyclical unemployment is a lack of employment as a result of changes to an economy’s business cycle.

Detailed explanation-5: -Cyclical unemployment refers to the unemployment which is caused by the changes in business cycles, that is economic upturn or downturn. Cyclical unemployment is a component of overall unemployment and is affected by the economic recession or expansion.