Science, Tech, Math › Social Sciences Cyclical Unemployment Print Christopher Furlong/Getty Images News/Getty Images Social Sciences Economics Employment U.S. Economy Supply & Demand Psychology Sociology Archaeology Ergonomics By Mike Moffatt Mike Moffatt Professor of Business, Economics, and Public Policy Ph.D., Business Administration, Richard Ivey School of Business M.A., Economics, University of Rochester B.A., Economics and Political Science, University of Western Ontario Mike Moffatt, Ph.D., is an economist and professor. He teaches at the Richard Ivey School of Business and serves as a research fellow at the Lawrence National Centre for Policy and Management. Learn about our Editorial Process Updated on March 17, 2017 Cyclical unemployment occurs when an economy's output deviates from potential GDP- i.e. the long-term trend level of output in an economy. When an economy's output is higher than the level of potential GDP, resources are utilized at levels higher than normal and cyclical unemployment is negative. Conversely, when an economy's output is lower than the level of potential GDP, resources are utilized at levels lower than normal and cyclical unemployment is positive. Put simply, cyclical unemployment is unemployment associated with business cycles- i.e. recessions and booms. Terms related to Cyclical Unemployment: Read More Why 0% Unemployment Isn't Actually a Good Thing By Mike Moffatt Unemployment Frictional Unemployment Structrual Unemployment About.Com Resources on Cyclical Unemployment: Would 0% Unemployment Be a Good Thing? Types of Unemployment Globalization, Unemployment and Recessions. What is the Link? Writing a Term Paper? Here are a few starting points for research on Cyclical Unemployment: Journal Articles on Cyclical Unemployment: Sectoral Shifts and Cyclical Unemployment Cyclical Unemployment: Sectoral Shifts or Aggregate Disturbances? Sectorial Shifts and Cyclical Unemployment Reconsidered Cite this Article Format mla apa chicago Your Citation Moffatt, Mike. "Cyclical Unemployment." ThoughtCo, Apr. 5, 2023, thoughtco.com/cyclical-unemployment-definition-1147992. Moffatt, Mike. (2023, April 5). Cyclical Unemployment. Retrieved from https://www.thoughtco.com/cyclical-unemployment-definition-1147992 Moffatt, Mike. "Cyclical Unemployment." ThoughtCo. https://www.thoughtco.com/cyclical-unemployment-definition-1147992 (accessed April 25, 2024). copy citation