Cyclical unemployment refers to the unemployment that occurs as a consequence of the economic cycles or business cycles. This type of unemployment occurs when the economy goes through contractions or recessions. The term "cyclical" means that the unemployment rate rises and falls in tandem with the business cycle. Synonyms for cyclical unemployment include economic recession unemployment, cyclical joblessness, and macroeconomic unemployment. The unemployment experienced during this period is typically temporary and results from a decrease in demand for goods and services. The impact of cyclical unemployment is often felt by both the employed and unemployed, as it can lead to market instability, weak demand for goods, and increased levels of poverty.