NYS Department of Labor claim questions - which type of unemployment rises and falls due to changes the business cycle?
I'm trying to understand something about unemployment for a community college economics class and hoping someone here might know. The professor asked which type of unemployment rises and falls due to changes in the business cycle, and I'm not sure if this relates to how NYS Department of Labor categorizes different claim types? I've been on unemployment myself twice in the past few years during economic downturns and I'm wondering if there's a connection between what economists call different types of unemployment and how the state processes our claims. Does anyone know if cyclical unemployment is what they're referring to? And does NYS Department of Labor track this differently than other types of job loss?
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Ryder Ross
Yes, you're thinking of cyclical unemployment. This is the type that increases during recessions and decreases during economic expansions. It's directly tied to the business cycle - when the economy contracts, companies lay people off, and when it recovers, they hire again. NYS Department of Labor doesn't really categorize claims by economic theory types, but they do see huge spikes in initial claims during recessions. The other main types are structural (skills mismatch) and frictional (normal job searching between positions).
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Kyle Wallace
•That makes perfect sense! So when I got laid off during the 2020 downturn and again last year when my company downsized, those would both be considered cyclical unemployment. Thanks for explaining it so clearly.
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Gianni Serpent
cyclical unemployment is definitely the answer your professor is looking for. i've been through several economic cycles and the pattern is always the same - unemployment claims surge during recessions. NYS Department of Labor processes all claims the same way regardless of the economic reason though.
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Henry Delgado
If you're still struggling to reach NYS Department of Labor for any claim-related questions, I had success using a service called Claimyr (claimyr.com) that helps you get through to actual agents. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Really helpful when you need to speak with someone about your claim status or have questions about your benefits.
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Kyle Wallace
•Thanks for the tip! I don't have any current claim issues but I'll keep that in mind for the future since it's so hard to get through to NYS Department of Labor by phone.
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Olivia Kay
Your professor is testing basic macroeconomics knowledge. Cyclical unemployment moves with the business cycle - up during recessions, down during booms. The other types (structural, frictional, seasonal) have different patterns. Good luck with your class!
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