oboloo Glossary

Employment Cycle

oboloo Glossary

Employment Cycle

An employment cycle is the repeating pattern of changes in the number of people employed over time. This cycle is determined by a combination of key economic and social factors, including changing consumer demand, rising costs of production, wage inflation, and government tax incentives. Understanding an economy’s employment cycle can provide valuable insights into how it may respond to shifts in fiscal policy or global events. Businesses, particularly those in industries directly impacted by changes in consumer demand, should pay close attention to the employment cycle in their respective markets in order to anticipate potential pitfalls or opportunities along their journey.