Question

Bill is a construction worker who was laid off because the market for new homes has been adversely affected in the recession. bill's unemployment experience is referred to

Answer 1

What Bill is experiencing is cyclical unemployment.

Cyclical unemployment is a type of unemployment that occurred due to the ups and downs of business cycles – where it would be low when the economic conditions are good, and it would be high when the economic conditions are bad.

Cyclical unemployment is part of the natural rate types of unemployment, together with structural and frictional.