Cyclical unemployment (周期性失业 zhōu qī xìng shī yè) refers to a type of periodic unemployment caused by a downturn in the business cycle. During recessions, the aggregate demand falls, and firms lay off workers to cut costs, causing a rise in cyclical unemployment. Cyclical unemployment is directly related to the macroeconomic situation and is an important focus of economic policy.
Part 1: Breakdown of Words
- “Cyclical” (周期性 zhōu qī xìng) as in “cyclical variation” (周期性变化 zhōuqī xìng biàn huà) and “cyclical downturns” (周期性衰退 zhōu qī xìng shuāi tuì). In this case, “性” (xìng) serves as a suffix, meaning a kind of property of something.
- “Unemployment” (失业 shī yè) as in “unemplyment rate” (失业率 shī yè lǜ) or “unemployment benefit” (失业救济金 shī yè jiù jì jīn).