What is the primary factor that influences labor market trends during economic recessions?

The primary factor that influences labor market trends during economic recessions is the level of demand for goods and services. When the economy slows down, businesses often see a drop in sales, which leads them to cut costs. One of the biggest costs for businesses is labor, so they may lay off workers or freeze hiring. For example, during the 2008 financial crisis, many companies reduced their workforce because people were buying less, resulting in high unemployment rates. This cycle of reduced demand and job losses can make it difficult for the economy to recover quickly.