- (economics) A type of unemployment explained by the demand for labor going up and down with the business cycle.
- attributive form of cyclical unemployment, noun.
cyclical unemployment - Investment & Finance Definition
Unemploy-ment that rises or falls in conjunction with the business cycle. As economic growth slows and corporations’ profits decline, cyclical unemployment rises because corporations lay off workers in order to reduce costs. The opposite is structural unemployment, which remains constant irrespective of what the economy is doing.