What type of unemployment is caused by economic downturns?

What type of unemployment is caused by economic downturns?

Step 1: Understand what unemployment means. It is when people who want to work cannot find jobs.
Step 2: Learn about different types of unemployment. There are several types, including cyclical, structural, and frictional unemployment.
Step 3: Focus on cyclical unemployment. This type happens when the economy is not doing well.
Step 4: Recognize that during economic downturns, people buy fewer goods and services.
Step 5: Understand that when demand for goods and services decreases, companies may need to lay off workers.
Step 6: Conclude that cyclical unemployment is specifically caused by these economic downturns.

No concepts available.