cyclical unemployment


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cyclical unemployment

n
(Industrial Relations & HR Terms) unemployment caused by fluctuations in the level of economic activity inherent in trade cycles

cyclical unemployment

Unemployment resulting from downward fluctuations in economic activity within trade cycles.
References in periodicals archive ?
If inflation reacts to an increase in cyclical unemployment, the detected connection can be reversed, and the increase in cyclical unemployment can be specified efficiently with the help of inflation.
In the context of this paper, it is important to distinguish between three essential types of unemployment: (i) frictional unemployment; (ii) cyclical unemployment; and (iii) structural unemployment.
In this way, prolonged cyclical unemployment causes permanent shrinkage of the labour force.
where [u.sup.c.sub.it] captures cyclical unemployment (output gap), [u.sub.it] is the log of the current unemployment rate and [u.sup.n.sub.it] is the natural or trend level of the unemployment rate; correspondingly, [s.sup.c.sub.it] represents the cyclical self-employment rate (self-employment gap), [s.sub.it] Is the observed self-employment rate and [s.sup.n.sub.it] is the natural self-employment rate.
Cyclical unemployment is when workers lose their jobs during economic downturns as measured by Gross Domestic Product (GDP), which usually accounts for high unemployment rates.
The unemployment problem chiefly affects low-skilled workers, an important influx of immigrants may increase a country's low-skilled unemployment rate, and low-skilled workers' cyclical unemployment may determine structural unemployment.
The cap covers all welfare payments except the state pension and benefits linked to cyclical unemployment rates - principally Jobseekers' Allowance - and is a key part of the Chancellor's strategy to drive down state spending over the long term.
OBR forecasts 1.5 million more jobs over the next five years and earnings to grow faster than inflation Welfare cap set at PS119 billion for 2015/16, rising to PS127 billion by 2018/19, only state pension and cyclical unemployment benefits excluded ENERGY ?
The cap covers all welfare payments except the state pension and benefits linked to cyclical unemployment rates - principally Job Seekers' Allowance - and is a key part of the Chancellor's strategy to drive down state spending over the long term.
In the gap model specification, [u.sub.t] - [u.sup.*] captures cyclical unemployment (called unemployment gap) and [y.sub.t] - [y.sup.*] captures cyclical output (called output gap).
For instance there are the differences between frictional unemployment versus cyclical unemployment versus structural (or long-term) unemployment (Myrick, 2012; Holzer, 1993; Schwartz, Cohen & Grimes, 1986; Gilpatrick, 1966).