How does an increase in cyclical unemployment typically affect overall economic performance?

Cyclical unemployment happens when there are not enough jobs because the economy is not doing well, often during a recession. When more people are unemployed, they have less money to spend on goods and services, which can lead to lower sales for businesses. As businesses earn less, they may cut back on hiring or even lay off more workers, creating a cycle of unemployment and reduced economic activity. For example, if a factory lays off workers because fewer people are buying their products, those laid-off workers won't spend money on things like groceries or clothing, which further hurts the economy. Overall, an increase in cyclical unemployment can slow down economic growth and lead to a more challenging situation for everyone.