Cyclical Unemployment: Definition, Cause, Types, Effects & More

Cyclical unemployment rises and falls with economic cycles, peaking during recessions and ebbing as the economy strengthens.

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Economists study cyclical unemployment patterns to develop policies for mitigating its impact during economic downturns.

The stages of cyclical unemployment include reduced demand, decreased production, layoffs, rising unemployment, and eventual decline with economic recovery.

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Cyclical unemployment stems from diminished labor demand due to economic slowdowns, causing layoffs and a surplus of job seekers.

The Great Recession of 2008 serves as a prime example of cyclical unemployment, marked by a housing crisis leading to job losses and economic decline.

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