Cyclical Unemployment

A factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle. When business cycles are at their peak, cyclical unemployment will be low because total economic output is being maximized. When economic output falls, as measured by the gross domestic product (GDP), the business cycle is low and cyclical unemployment will rise.

Economists describe cyclical unemployment as the result of businesses not having enough demand for labor to employ all those who are looking for work. The lack of employer demand comes from a lack of spending and consumption in the overall economy.

Cyclical unemployment is one of five classes of unemployment as recognized by economists. Other types include structural, frictional, classical and Marxian. In most cases, several types of unemployment exist at the same time. With the exception of cyclical unemployment, the other classes can be occurring even at the peak ranges of business cycles, when the economy is said to be at or near “full employment”.

Investment dictionary. . 2012.

Look at other dictionaries:

  • cyclical unemployment — Unemployment caused by a low level of aggregate demand associated with recession in the business cycle. Bloomberg Financial Dictionary …   Financial and business terms

  • cyclical unemployment — (Economics) unemployment that is directly connected with a nation s economy and output level (unemployment grows in times of slow economic growth and falls in times of rapid growth) …   English contemporary dictionary

  • cyclical unemployment — periodic unemployment caused by fluctuations in the business cycle. * * * …   Universalium

  • cyclical unemployment — noun A type of unemployment explained by the demand for labor going up and down with the business cycle …   Wiktionary

  • cyclical unemployment — See unemployment …   Dictionary of sociology

  • cyclical unemployment — Econ unemployment, usually temporary, caused by a lack of aggregate demand, for example, during a downswing in the business cycle …   The ultimate business dictionary

  • cyclical unemployment — periodic unemployment caused by fluctuations in the business cycle …   Useful english dictionary

  • cyclical-unemployment — adjective noun …   Wiktionary

  • Unemployment — World unemployment rates[1] as of January 2009[update] Unemployment (or …   Wikipedia

  • unemployment — noun a) The state of having no job<!pertinent?, which may cause late filial life; joblessness. Unemployment made Jack depressed. b) The phenomenon of joblessness in an economy. Unemployment has been considered a cause of crime. Syn: joblessn …   Wiktionary

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