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In a recession, companies and private households usually keep their money together. The consequences of a recession include rising unemployment figures and more people working short-time. Both lead to lower demand. Because if citizens earn less money, they also consume less. This, in turn, is bad for companies, which as a result sell less and are left with their inventories. The lack of income can lead to further layoffs, so that unemployment continues to rise.
Even people looking for a new job face problems in a recession. After all, anyone applying for a new job is likely to have difficulties finding a suitable job during a recession – because if companies are in poor financial shape, they stop hiring.