As mentioned earlier the cyclical unemployment is linked with the business cycle. The business cycle, basically measures the change of the Gross Domestic Product with time. The business cycle is composed of four period of time, but the length of time cannot be predetermined. The business cycle begins with the economic slowdown and soon it is pushed into a trough where the economy hits is lowest point. Here the unemployment rate is the maximum. In the expansionary phase of the business cycle, a number of factors work in unison to boost the economy. The economy is on its path of recovery. Production is taking place at full swing and more workers are unemployed to meet the high production needs and hence unemployment is the minimum at this point.
Most commonly, a business cycle lasts for a very short time period, but there may be long-term factors that may trigger the economy into a depression, which is the magnified form of a recession. In this case the economy may be caught up in ling term unemployment.
Cyclical unemployment can be witnessed during the Great Depression in US. The data collected from the National Bureau of Economic Research show that unemployment rose to 25% from zero in 1933. The unemployment rate shot again to 20% in 1938.
A different pattern of unemployment is observed in the 1990s from the data collected from the Economic Report of the President. During this period the unemployment rate ranges from 3% to 10%. It is observed that unemployment is high in times of the recession in 1948,1958,1961,1969,1979,1981 and 1990.