cyclical unemployment

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Related to Unemployment types: Disguised unemployment

Cyclical unemployment

Unemployment caused by a low level of aggregate demand associated with recession in the business cycle.

Cyclical Unemployment

Unemployment that increases when economic growth decreases and vice versa. Cyclical unemployment increases when demand for products is insufficient for businesses to justify the expense of keeping so many employees on staff. Likewise, the unemployment decreases when demand rises.

cyclical unemployment


cyclical unemployment

the demand deficient UNEMPLOYMENT that occurs as a result of a fall in the level of AGGREGATE DEMAND and business activity during the RECESSION and DEPRESSION phases of the BUSINESS CYCLE.