In Canada between June and July in 2014, the number of full-time jobs fell by 59,700 while part-time jobs increased by 60,000. The unemployment rate fell 0.1 percent to 7 percent as some workers left the job market. The participation rate fell to 65.9 percent from 66.1 percent.
a. Explain the link between the fall in the participation rate and the fall in the unemployment rate.
b. If all the workers who left the job market were discouraged searchers, explain how the R5 unemployment would have changed.