Economic Conditions at the Cycle Bottom Employment rebounded by 0.1 percent in August 2008, its rst gain in four months. All of the increase was in full-time jobs. The unemployment rate in August 2008 was 8.7 percent, up from 8.6 percent a month earlier. Source: Canadian Economic Observer, September 2008 21. a. How did the unemployment rate in August 2008 compare to the unemployment rate during the recessions of the early 19805 and early 19905? b. How can the unemployment rate rise when employment rises? Compare the unemployment rate in August 2008 to the estimated natural unemployment rate. What does this imply about the relationship between real GDP and potential GDP at this time