What type of unemployment is primarily caused by economic downturns, such as a recession?

The type of unemployment primarily caused by economic downturns, like a recession, is called cyclical unemployment. This happens when there is less demand for goods and services, leading businesses to reduce their production and, in turn, lay off workers. For example, during a recession, people may spend less money because they are worried about their jobs, which means stores sell fewer products and may have to let employees go. As the economy starts to recover, companies usually hire back workers, reducing this type of unemployment. Therefore, cyclical unemployment is directly linked to the ups and downs of the economy.