In Canada between June and July in 2016, the number of full-time jobs increased by 63,200 while part-time jobs fell by 108,800. The unemployment rate increased from 6.4 percent to 7.2 percent. The labor force participation rate increased from 66.5 percent to 66.6 percent.

a) Explain the link between the rise in the participation rate and the rise in the unemployment rate.

b) If all the workers who entered the job market were discouraged searchers, explain how the R5 unemployment would have changed.

c) Think of this question independently from the article above.

A high unemployment rate tells us that a large percentage of the labour force is unemployed but not why the unemployment rate is high. What unemployment measure tells us if (i) people are searching longer than usual to find a job, (ii) more people are involuntary part-time workers, or (iii) more unemployed people are discouraged searchers?