Final answer:
A worker unemployed due to insufficient demand for goods and services is experiencing cyclical unemployment, associated with economic recessions. Such unemployment can contribute to poverty and is worsened during periods where the supply of capable workers exceeds demand, particularly affecting those with industry-specific skills.
Step-by-step explanation:
A worker who is unemployed due to insufficient demand for goods and services is experiencing what's known as cyclical unemployment. This type of unemployment occurs during periods of economic downturn or recession, when there is a general decline in demand throughout the economy. As consumer confidence drops and spending decreases, businesses generate less revenue and may be forced to lay off workers, contributing to cyclical unemployment. Unlike structural or frictional unemployment, cyclical unemployment is directly related to the economic cycle and is most often temporary.
When the supply of capable workers exceeds the demand for workers with their skills, this can lead to unemployment. This situation is painful for individuals who may not be able to support themselves and their families, often leading to experiences of poverty. Moreover, types of unemployment like structural unemployment, where individuals lack the skills needed by the labor market, can result in long-term joblessness. Workers with industry-specific skills, such as factory workers, may find it particularly hard to secure new employment in different industries if they become unemployed.