During the expansion phase of the business cycle, the economy grows. This means:
More Jobs: When people want to buy more products and services, companies need to hire more workers. For example, if a tech company releases a hit product, they might need to bring in more engineers and support staff.
Fewer People Without Jobs: When there are more jobs available, fewer people are unemployed. This is great news for anyone looking for work.
On the other hand, during the contraction phase:
Job Losses: Companies might stop hiring or even let workers go to save money. For instance, during a tough economic time, a retail store might have to cut back on staff because fewer customers are buying things.
More People Without Jobs: This situation can cause the unemployment rate to climb, making it tougher for people to find jobs.
During the expansion phase of the business cycle, the economy grows. This means:
More Jobs: When people want to buy more products and services, companies need to hire more workers. For example, if a tech company releases a hit product, they might need to bring in more engineers and support staff.
Fewer People Without Jobs: When there are more jobs available, fewer people are unemployed. This is great news for anyone looking for work.
On the other hand, during the contraction phase:
Job Losses: Companies might stop hiring or even let workers go to save money. For instance, during a tough economic time, a retail store might have to cut back on staff because fewer customers are buying things.
More People Without Jobs: This situation can cause the unemployment rate to climb, making it tougher for people to find jobs.