Three friends, Tom, Jerry and Mary were having coffee in the GOSSIP CAFÉ and were discussing their job prospects.

Tom told his mates that he has just resigned from his current job because he worked long hours and did not have enough time to spend with his kids. He said he is looking for a new job with normal hours and family friendly policies.

Jerry, who was feeling a bit down, mentioned that after graduating with an Information Technology degree a year ago she still can't find a job because the economy is in a contractionary phase.

Mary joined in and said that since she moved to the countryside a year ago she still can't find a job because there are not many jobs available in that area.

To lighten the mood, Tom told them things will get better as the unemployment rate decreased last month by 0.2 percent to 5.9 percent. Mary did not share Tom's optimism and told them that the decrease in the unemployment rate is not good news because it was due to a fall in the participation rate.

a. Which type or category of unemployment best describes Tom, Jerry and Mary situation. Explain.

b. Explain what Mary means when she said that the fall in last month's unemployment rate is not good news.