Is Unemployment Counter-Cyclical? (True or False)

Unemployment is considered 'counter-cyclical'. This means that it generally moves in the opposite direction of the business cycle. During economic expansions, when businesses are growing and hiring, unemployment tends to fall. Conversely, during recessions, when businesses are contracting and laying off workers, unemployment tends to rise. This relationship is a fundamental concept in macroeconomics and helps explain the dynamics of the job market.