The type of unemployment associated with recessions is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) seasonal unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is associated with economic downturns and recessions. It occurs when there is a decrease in demand for goods and services and businesses reduce their workforce as a result. Frictional unemployment is due to people switching jobs or entering the workforce for the first time, while structural unemployment is caused by a mismatch between the skills of workers and the requirements of available jobs. Seasonal unemployment occurs in industries that are only active during certain times of the year, such as tourism or agriculture.

The Type of Unemployment Associated with Recessions Is Called