Recessions often result in increased unemployment levels, which can reduce the overall demand in an economy. The type of unemployment created by a recession is commonly referred to as "cyclical unemployment." This type of unemployment arises due to the business cycle.While economists have eight different classifications of unemployment, two of the most discussed, outside of cyclical unemployment, are frictional unemployment and structural unemployment. Frictional unemployment occurs as people leave their jobs. It takes time for individuals to find other work, resulting in short-term unemployment. Meanwhile, structural unemployment occurs due to changes in an economy, such as the development of a new technology creating major shifts in the labor landscape.