What type of unemployment is due to economic downturns?

The type of unemployment that arises due to economic downturns is cyclical unemployment. This form of unemployment is closely related to the fluctuations in the business cycle. During periods of recession, when economic activity slows down, companies may reduce their workforce or halt hiring altogether, leading to higher levels of unemployment.

Cyclical unemployment is primarily driven by the decline in demand for goods and services, which in turn leads to a decrease in production and employment opportunities. As the economy recovers and begins to grow again, cyclical unemployment tends to decrease as businesses start to hire more workers to meet the increasing demand.

In contrast, frictional unemployment occurs when individuals are temporarily between jobs or are entering the labor force for the first time. Structural unemployment arises from changes in the economy that create a mismatch between workers' skills and the needs of employers, while seasonal unemployment is related to seasonal work patterns. None of these types directly result from an economic downturn, making cyclical unemployment the correct choice in this context.