What type of unemployment typically rises during economic recessions due to reduced demand for goods and services?

The type of unemployment that usually increases during economic recessions is called cyclical unemployment. This happens when there is less demand for goods and services, leading businesses to make less money. When companies earn less, they may cut back on hiring or even lay off workers, resulting in more people being unemployed. For example, if a factory makes toys and fewer people are buying toys during a recession, the factory might need to reduce its workforce. This means more workers will be looking for jobs, which raises the overall unemployment rate during tough economic times.