The unemployment occurring due to recession is termed as cyclical unemployment.
Explanation:
Generally, unemployment is classified as three types. They are cyclical, frictional and structural unemployment. The frictional unemployment is the period when the experienced or fresher takes time to find a new job without any job in their hand.
The structural unemployment is the unemployment where the skills required by the employer is different from the skills acquired by the employee leading to unemployment.
The third type i.e. Cyclical occurs during the recession time when the economy falls of a country forcing the management to reduce their man power in order to maintain financial balance. As this is cyclic nature so it is termed as cyclical unemployment.
