HI5003 Economics for Business: Assignment

DEMAND AND SUPPLY OF CERTAIN RESOURCES IN AUSTRALIA
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Topic : DEMAND AND SUPPLY OF CERTAIN RESOURCES IN AUSTRALIA
Pash, C. (2017). The 6 jobs Australian recruiters say will be in demand in 2017.
Business Insider , 1-4. https://www.businessinsider.com.au/the-6-jobs-australian-recruiters-say-
will-be-in-demand-in-2017-2017-1
The essence of the story in the article
The story in the artcile focuses on supply and the demand of labor in Australia as a
nation. The story outline six field of specialization which are mostly demanded by austrlian
employers. The article was released by the Hay a recruiter as a quarterly report showng jobs
which are highly demanded in australian in the current year 2017 (Pash 2017). The content of the
artcile expresses the six fields as finacial analysts, payrollers, site managers, sales admnistration
officers, development offiicers and operation engineers as well as data analysts. Accoring to the
artcle, there are human resoucrce suppliers who in are indictated as the Austrlaian laborers and
places Australian employers on the demand side. By placing the two parties as suppliers and
buyers, it meets the topic of demand and supply of certain Asutarlian resources.
According to the ccontent of the article, the most interested parties include Austrlaian
employers who are required to utilize human resource in relation to the six fields. Another
interested parties are the labores in Asutralia who are able and willing to offer their services to
the employers at the prevailing wage rates. Moreover, the content futher outlines areas of interest
based on the strong demand in renewable energy sector, human resources business partnering as
well as disable case load administration (Doiron and Kalb 2015). According to the writers
school of thought, it is evident that this year (2017) the labor market is full of various job
qualifictions which should attract employers.

Every employee is thus requiered to move steps further above job description and create
a competetive advatage in order to secure a job in the Australian labor market. The writer of the
article then comes up with a list of competetive advantages an employee should have in order to
be able to secure jobs aby adding value to their employers (Gregory and Duncan 2011). The list
requires employees to have qulaification such as discpline, efficiency gains, digital lieteracy and
expoerience. The bottom line of argument in this case is that only capable job seekers will be
able to secure opportunities but people of such skills are rare in labor market and attract higher
wage compensation.
Economic analysis of the article
The content of the article as stated above can be analysed using economic concept
theories and models. The best economic theoritical concpet to applied in this case is demand
and supply as well as equilibrium as indicated below:
As already stated in section one of the paper, the artcile clasified the most interested
people into two, the supliers and buyers. The supply and demand theory states that the higher
the price the lower the demand within a given market. moreover,the lower the price the higher
the demand and this applies to the supply theory (Levitan, Mangum and Marshall 2012).

Applying demand and supply theory to the issues outlined in the content of the aticle
means shows that demand and supply of the six identified fields will rise leading to high prices.
When prices are high most of the laborers will be willing to offer their skills to Australian
employers. From the identified overhead issues above, there is a clear evidence of the existence
of excees demand in the job market in future (Nickell and Bell 2015). This can also be expressed
in other terms as labor shortage in Australia. Taking for instance the issue of para planners and
fiancial planners job candiates who are required by Autsrlian employers to have a digree in their
field of specialization along with ADFP or CFP are short in supply. Apart from this category of
candidates, there is a high demand for quantitative risks analysts and childhood teachers who as
well are in short supply in Australia leading to higher prices. Based in these few sectors as
outlined in the article, there is an overall labor shortage in Australia which comes as a result of
the additional requirements needed by the employers. According to demand and supply, the
lower the demand the higher the prices and this is evident in Australia (O’Brien et.all 2011).
Recently the National Disability Insurance Scheme created a large demand for child care
managers and this has resulted into an increased wages for such individual workers.
My view on the story
According to the above analysis, I will give recommendation to each stakeholders.
There is need for Australian employees to develop their qualifications according to employers’
demands. Australian employees should not concentrate only on job descriptions and experience
but rather create unique qualifications which are required by employers in the six fields. This is
because most of the employers in the identified six fields require employees with additional
benefits to the organization. Moreover, the organization should up their skills in risk
management, financial planning which are required by banking sector. Employees are also

encourage to improve their skills in industrial robotics and organizational management. Based on
the high demand on child care, Australian job seekers should acquire experience in childcare
education. With up skills in each of the six highly demanded fields, workforce participation will
move up as employees will have skills for in various industries as shown below:
Recommendation to employers
Based on the above analysis it is recommended for employers to conduct internal
workforce improvements and job upskills. This will help them have qualified workforce rather
than looking for employeesform the job markets with required qualifications. Employers instead
of looking for worskers with the required job qualifications, should organise internal job upskills
through workshops, seminars as well as trainng conferences to provide supplementary value to
their task force (Segal and Bolton 2009). The employers should try to improve their employees

to their required job standards by bringing trainers as well as contraicting various training
institutions in order to help improve workforce performance.
Conclusion and support analysis
The above analysis supports this conlusion in that the qualifications and experince
required by employers in the six field identified. There is short supply despite the excess demand
by the employers for qualified employees in the six fields. The shortage is as a result of
employees who are currently in australia to do not have qaulifications which can enble them do
suplementary work. The employers as already stated, require workforce team who can take
suplementary work and add value to their organizations. Based on this, many people in the
australian job market are not employed as they lack values to add to their employers.

References
Doiron, D. and Kalb, G., 2015. Demands for child care and household labour supply in Australia.
Economic Record, 81(254), pp.215-236.
Gregory, R.G. and Duncan, R.C., 2011. Segmented labor market theories and the Australian
experience of equal pay for women. Journal of Post Keynesian Economics, 3(3), pp.403-428.
Levitan, S.A., Mangum, G.L. and Marshall, R., 2012. Human resources and labor markets. New
York: Harper & Row.
Nickell, S. and Bell, B., 2015. The collapse in demand for the unskilled and unemployment
across the OECD. Oxford review of economic policy, 11(1), pp.40-62.
O’Brien‐Pallas, L., Baumann, A., Donner, G., Murphy, G.T., Lochhaas‐Gerlach, J. and Luba,
M., 2011. Forecasting models for human resources in health care. Journal of Advanced Nursing,
33(1), pp.120-129.
Pash, C. (2017). The 6 jobs Australian recruiters say will be in demand in 2017. Business Insider
, 1-4. https://www.businessinsider.com.au/the-6-jobs-australian-recruiters-say-will-be-in-
demand-in-2017-2017-1
Segal, L. and Bolton, T., 2009. Issues facing the future health care workforce: the importance of
demand modelling. Australia and New Zealand Health Policy, 6(1), p.12.