What is an economic recession and how does it affect employment?

An economic recession is a period of significant decline in economic activity, typically marked by negative GDP growth, high unemployment rates, and reduced consumer spending. During a recession, businesses may reduce production, cut costs, and lay off workers in response to lower demand for goods and services. Unemployment rises as companies scale back hiring or shut down operations. The labor market becomes more competitive, with fewer job opportunities available. Recessions can have long-lasting effects on employment, as recovery may take time, and some industries may not fully recover.