what is cyclical unemployment 
cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn unemployment typically rises during recessions and declines during economic expansions moderating cyclical unemployment during recessions is a major motivation behind the study of economics and the goal of the various policy tools that governments employ to stimulate the economy investopedia jiaqi zhouunderstanding cyclical unemploymentcyclical unemployment relates to the irregular ups and downs or cyclical trends in growth and production as measured by the gross domestic product gdp that occur within the business cycle most business cycles eventually reverse with the downturn shifting to an upturn followed by another downturn economists describe cyclical unemployment as the result of businesses not having enough demand for labor to employ all those who are looking for work at that point within the business cycle when demand for a product and service declines there can be a corresponding reduction in supply production to compensate as the supply levels are reduced fewer employees are required to meet the lower standard of production volume those workers who are no longer needed will be released by the company resulting in their unemployment 