cyclical unemployment

cyclical unemployment definition - finance
Unemploy-ment that rises or falls in conjunction with the business cycle. As economic growth slows and corporationsÂ’ 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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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