Which type of unemployment is caused by a lack of demand for workers as a result of a shrinking economy?

The answer is "cyclical unemployment".

Cyclical unemployment is a factor of overall joblessness that identifies with the customary good and bad times, or recurrent patterns in development and generation, that happen inside the business cycle. At the point when business cycles are at their pinnacle, repeating joblessness will in general be low since aggregate monetary yield is being amplified. At the point when financial yield falls, as estimated by the (GDP), the business cycle is low and repetitive joblessness will rise.