Describe how growth in the labour force participation can cause the unemployment rate to rise. 2 marks

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An increase in the labour force participation rate (LFPR) will usually tend to increase the unemployment rate in the short term to the extent that the higher LFPR is a consequence of more people looking for work. For example, an increase in , or much less generous system should increase the size of the labour force relative to the age population. While these people are in the job search phase, they are technically classified as unemployed until they eventually secure employment, resulting in a higher unemployment rate as measured by the total number of unemployed as a proportion of the force.