What happens to level of employment during recession?

Question

economics

Answer 1

The unemployment level goes up.

Answer 2

Unemployment usually increases (if unemployed seeks job).

Explanation is simple - during recession there is fall in demand thus less goods/services are demanded and consequently less labor required to produce these goods/services.

So this surplus of labor-force becomes unemployed.

Then they are ready to work for lower wages - this increases supply (through lower costs) and with increase in supply more labor is required to keep production on equilibrium level of GDP.