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Yes, it is possible for the unemployment rate to increase even when the total
amount of employment also increases. This situation can arise due to various
factors, including the behavior of discouraged workers.

**Discouraged Workers:**
Discouraged workers are individuals who have given up actively looking for
employment because they believe there are no suitable job opportunities available
for them. When these discouraged workers stop actively seeking jobs, they are no
longer counted as part of the labor force. As a result, they are not included in
the official unemployment rate calculation.

Now, consider the following scenario:

Suppose there is a significant increase in available jobs, leading to a higher

demand for workers. As a result, many previously discouraged workers decide to re-
enter the labor market and start actively seeking jobs again. Some of these workers
might find jobs quickly, while others might face challenges in finding suitable
employment.

In this situation, even though more people are finding jobs and the total
employment increases, the number of people actively seeking jobs (labor force) also
increases due to the re-entry of discouraged workers. If the rate at which these
workers are finding jobs is slower than the rate at which they are re-entering the
labor force, the unemployment rate can still increase.

This is because the unemployment rate is calculated as the ratio of unemployed

workers to the labor force (unemployed workers + employed workers). If the labor
force grows more rapidly due to the re-entry of discouraged workers, and the
increase in employed workers is not enough to offset the rise in the number of
unemployed workers, the unemployment rate can go up even when total employment is
increasing.

In summary, the behavior of discouraged workers, along with changes in the labor
force participation rate, can lead to a scenario where the unemployment rate
increases despite an increase in total employment.