Australian Labor Market (Doc)
Added on 2020-02-24
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Running Head: Australian Labor MarketThe demand and supply of labor in AustraliaStudent NameInstitutional AffiliationCourse/NumberInstructor NameDue Date
Australian Labor Market2The demand and supply of labor in AustraliaIntroductionLabor is an important resource in the production of goods or services in an economy (Rouse, 2011). It is therefore essential for the policy makers to ensure that there is sufficient supply of labor. The Australian economy has been challenged with the issue of bringing its unemployment level to manageable level since it is very high (Valenzuela, 2013). This means that the demand for labor in Australia exceeds its supply. Demand for labor is given by the workers who are looking for both full time and part time employment; the number of unemployed persons in Australia is high. Despite the fact that the economy is experiencing growth in the current years, this has not been reflected on the labor market; businesses are not expanding and thus are not demanding additional labor (McGrath, 2014). In this paper, some of the factors that are responsible for increasing the labor demand will be identified and also some factors that are discouraging supply. In the article “Unsustainable labor challenges leave Australia's vegetable supplies to rot” obtained from the Sydney Morning Herald written by AnnaPatty in 2017, the writer is showing us that wage is one of the factors that discourages supply of labor. This report will thus be important to the unemployed people to understand the reasons for the persistence of unemployment. It will also help the employers in making wise employment decisions as it will acquire knowledge on how to improve the workers productivity. The government will also be able to make policies towards addressing some of the problems that will be identified to accelerate the unemployment problem.Economic AnalysisThe article notes that labor is an important resource for promoting production. In this article, it is noted of the many farmers that have experienced great losses owing to the insufficiency of laborers. The losses have been incurred because the workers who are supplied inthese farms are lower than the labor demand. The sustainability of the agriculture industry is at risk because they will not be able to produce more as they will be afraid that they won’t be able to get enough laborers to pick, package and get the fruits to the market. The productivity is also undermined because the businesses cannot expand as additional workers may be required for the same. One of the major solution introduced to help solve the challenge of low labor supply is thatof facilitating the Working Holiday Maker (Martin, 2017). These young people from countries
Australian Labor Market3neighboring Australia are allowed to offer their low skilled labor in an industry like the horticultural industry (Moir, 2017).The reliance of this Working Holiday Maker is becoming a major challenge as some of the farmers are unable to recruit the low-skilled workers and end up leaving their fruits unpicked.The duration period for such visas is 88 days and these workers are not willing to be committed to continue working after these days are over. The article noted that these workers are not willingto extend their visas as it leads to exploitation. This industry is an important contributor to the Australian GDP, insurance on food security and the earning of foreign exchange from the exportation of these products (Patty, 2017). The most important factor for inadequacy of laborersin this industry is payment of low wages and difficult working conditions. The Australians thus claims that this is a low status job that they cannot engage in. they also notes that there is no job security from involvement in such a job.The article also noted that even the Working Holiday Makers are not enough; the reason given was that these workers are limited to flow from certain countries and restrictions on others.It is proposed by the horticultural farmers that the government should lower such restrictions andallow more laborers to from many countries to give a sufficient supply. The policies by the government are also discouraging the flow; the government has increased tax on these workers; farmers argue that the tax should be lowered so as to attract more workers.
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