When does cyclical unemployment take place?

because less spaces for jobs and employment of new people because of the recession

and eventually people start to be let go of by their bosses.

Another answer:1) In a slow or diminishing economy, consumers begin reducing their consumption, causing businesses to lay off workers, 2) employers expenses start rising, so to cut costs they lay off workers, 3) hazardous, discriminatory practices, domestic violence victimization, or toxic working conditions cause people to leave, 4) spouses get re-located causing a working spouse to quit their job to follow the spouse, etc. 5) companies out-source their work to other locations (even out of the country), 6) natural attrition, without hiring to fill the vacancies, etc.