cyclical unemployment


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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

see UNEMPLOYMENT, BUSINESS CYCLE.

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.
References in periodicals archive ?
The resulting cyclical unemployment is currently estimated at 50 000 persons.
In the following three-paper section, Summers and his co-authors focus on cyclical unemployment.
Although the shortage of labour was somewhat more appreciable last year, it is still very limited, as is reflected in substantial cyclical unemployment and thus low underlying pressure on wages (see Diagram 135) The overall picture of a gradually improving but still slack labour market, and a rising but still small proportion of firms reporting shortages, suggests that wage increases will remain modest in 2005 and 2006.
Demand would be less, cyclical unemployment higher and inflation substantially below the inflation target at the end of 2006.
US cyclical unemployment performance has at least been decent by the standards of its peers, then.
Those of us who fear that the Fed's approach has greatly deepened the US economy's malaise and is turning America's cyclical unemployment into permanent long-term structural non-employment have lost the domestic monetary-policy argument.
Brainard also was Associate Professor of Applied Economics at the MIT Sloan School of Management, where her research made important contributions to the debate on the relationship between offshore production, trade, and jobs and the measurement of structural and cyclical unemployment.
The cap covers all welfare payments except the state pension and benefits linked to cyclical unemployment rates - principally Jobseekers' Allowance - and is a key part of the Chancellor's strategy to drive down state spending over the long term.
The cap covers all welfare payments except the state pension and benefits linked to cyclical unemployment rates - principally Job Seekers' Allowance - and is a key part of the Chancellor's strategy to drive down state spending over the long term.
5 million more jobs over the next five years and earnings to grow faster than inflation Welfare cap set at PS119 billion for 2015/16, rising to PS127 billion by 2018/19, only state pension and cyclical unemployment benefits excluded ENERGY ?
Although the gap model is the most common approach in the literature, it has an important drawback as there is no unique method of determining potential output and cyclical unemployment.
For instance there are the differences between frictional unemployment versus cyclical unemployment versus structural (or long-term) unemployment (Myrick, 2012; Holzer, 1993; Schwartz, Cohen & Grimes, 1986; Gilpatrick, 1966).