NYS Department of Labor - what is the type of unemployment that goes along with the business cycle?
I'm trying to understand different types of unemployment for a class project and I need to know what kind of unemployment happens because of the business cycle. Like when the economy goes up and down, what do they call that type of unemployment? I've been looking through NYS Department of Labor resources but they don't really explain the economic theory behind it. Anyone know the answer to this?
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Malik Johnson
That would be cyclical unemployment. It's the type that fluctuates with economic recessions and expansions. When the economy contracts, businesses lay people off, creating cyclical unemployment. When it expands, those jobs typically come back. NYS Department of Labor sees this pattern regularly - during recessions they process way more UI claims, during booms the claims drop significantly.
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QuantumLeap
•Thank you! That makes perfect sense. So when NYS Department of Labor sees huge spikes in unemployment claims during economic downturns, that's mostly cyclical unemployment?
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Isabella Santos
yep cyclical unemployment is what you're looking for. differs from structural unemployment which is when jobs disappear permanently due to technology changes or frictional unemployment which is just normal job switching
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Ravi Sharma
If you're doing research on this topic, you might want to look at NYS Department of Labor's historical unemployment data. They publish quarterly reports that show how unemployment claims correlate with economic indicators. During the 2008 recession and again in 2020, you can see clear examples of cyclical unemployment in action - massive spikes in UI claims that weren't due to structural changes in the economy but rather temporary economic contractions.
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QuantumLeap
•That's a great suggestion! Do you know where I can find those historical reports from NYS Department of Labor?
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Ravi Sharma
•Check the NYS Department of Labor website under their research and statistics section. They have data going back decades showing unemployment trends.
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Freya Larsen
This brings back memories of my economics classes! The business cycle creates that roller coaster effect on employment. I remember during the last recession how overwhelmed NYS Department of Labor was with all the claims flooding in. My brother lost his construction job and it took months to process his UI claim because of the volume.
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Omar Hassan
wait so cyclical unemployment is different from seasonal unemployment right?? i always get those confused when talking about my landscaping work
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Malik Johnson
•Yes, they're different! Seasonal unemployment happens at predictable times each year (like your landscaping work in winter). Cyclical unemployment is tied to the broader economic cycle and can happen at any time depending on economic conditions. NYS Department of Labor tracks both types separately in their statistics.
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