There are several types of unemployment - frictional, structural, institutional, seasonal, cyclical and others.In contrast to the wild-type of unemployment to which the first two types, cyclical unemployment does not arise as a result of a lack of jobs, and by slowing down the rate of economic growth, decline in GDP, the industrial crisis.For example, during the Great Depression in the United States has become unemployed every fourth inhabitant of the country.
cyclical unemployment affects all sectors of the economy.The massive bankruptcy of small and even large companies cause unexpected and sudden cuts and layoffs.In addition, the economic downturn does not help people to retraining or upgrading,
does not save change of residence, as the crisis are often covers the entire national economy, or even out to the world level.
cyclical unemployment caused by the economic crisis may be manifested in direct and indirect form.Openly expressed in the dismissal and the complete loss of work, the hidden manifest in the reduction of the working week and working hours, compulsory leave, reduction of wages paid.
cyclical unemployment - the most massive and painful but social disasters, it brings losses in real GDP.American economist Arthur Melvin Okun, comparing GDP and the actual conditions of full employment, concluded that the excess of the natural cyclical unemployment, even 1 percent, leading to a decrease in the actual level of GDP by 2.5 percent, compared with the potential level of gross domestic product.
In terms of cyclical unemployment in the country go to the budget spending to smooth the effects of - payment of benefits, opening employment centers, rehabilitation of the unemployed, the creation of new jobs through the state, the reorientation of fiscal policy and other.
Since the economy is cyclical and involves alternation of ups and downs, cyclical unemployment is significantly reduced at the next rise and can completely disappear.