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See picture (a) The following was reported in the local newspaper: There is enormous churn in the labour market, with anywhere from 300,000 to 400,000

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(a) The following was reported in the local newspaper: "There is enormous churn in the labour market, with anywhere from 300,000 to 400,000 people joining and leaving positions each month. However, with people being hired in construction different to those losing their jobs in manufacturing replaced by automation, it is possible that rising unemployment will create a fall in demand resulting in decline in economic growth". Determine and explain the types of unemployment referred to in the above statement. (3 marks) (b) Assume the economy is recovering from a recession. The Minster of Employment expects to see the official unemployment rate fall, but instead the unemployment rate increases. Which of the groups defined as "not in the labour force" could explain the increase in the official measure of the unemployment rate, and why? (2 marks)

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