Question

Sean has lost his job at the New York Stock exchange because the country has fallen into a deep recession. What kind of

unemployment is Sean experiencing?

Answer 1

Cyclical Unemployment

Step-by-step explanation:

Cyclical Unemployment refers to a form of unemployment that occurs because of the economic cycle that happen in the country. Every countries have to undergone an ups and Down period in their economic cycle.

During ups period, the amount of demand and disposable income in the market is high. This provide the country with higher job opportunities.

during Down period, the amount of demand and disposable income in the market is low. This resulted in higher amount of unemployment. This is what happened to Sean. Recession is considered as a down period in a country's economy.