Economics Assignment: Australia's Recession and Unemployment

This economics assignment discusses Australia's recession on a per capita basis and the issue of unemployment. It analyzes two articles that highlight the macroeconomic factors affecting the economy. The assignment explores key points, concepts, and economic principles related to these issues.

Running head: Economics assignment
ECONOMICS ASSIGNMENT
Name of the student
Course name
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Economics assignment
Table of Contents
Article 1: Australia’s economy just entered recession on a per capita basis...................................2
Introduction......................................................................................................................................2
Key points in the articles.................................................................................................................2
Key concepts and economic principles............................................................................................3
Conclusion.......................................................................................................................................4
Article 2: Unemployment edges down to 5pc despite a cooling economy......................................5
Introduction......................................................................................................................................5
Key points in the articles.................................................................................................................5
Key concepts and economic principles............................................................................................6
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8

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Economics assignment
Article 1: Australia’s economy just entered recession on a per capita basis
The name of the articles is Australia’s economy just entered recession on per capita basis
and Stephen Letts have written the article. The article was published in 6th march 2019.
Introduction
The study is going to highlight the issues of growth rate in Australia in the last quarter.
The study will consider two articles on the issues in doing the analysis. The main aim of this
study is to highlight the pros and cons of the macroeconomic factors and the issues that are being
highlighted within the economy.
Key points in the articles
The economy of Australia have witnessed economic growth of 4% at the start of 2018
and in the second quarter of 2018, the growth of the economy, decreased to about 1% in the
second half of the economy. The economists however, forecasted that the economy of Australia
would be having a growth of 2.8% and the slow growth in the economy have dragged down the
growth rate of economy to 2.2%, which was well below the predicted growth.

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Economics assignment
Figure 1: GDP per capita in each quarter
(Source: ABC News, 2019)
It has been seen that in each and every quarter the growth was not at all constant in
nature. This happened mainly because of soft consumption spending from household and fall in
the dwelling industry. The main argument behind this struggling growth is struggle that the
government sectors were facing and private sectors were not at all contributing to the economy.
Key concepts and economic principles
One of the major principles that were found is that government consumption expenditure
for health services, care for the aged persons and disability services increased by 1.6%. This is
one of the important aspects in the sense that it will definitely put pressure on whole economy, as
the GDP measured in per capita income is one of the important standards in measuring standard
of living. The major concept is that the increase in the living standard or per capita GDP is going
to have deep impact on determining long run growth of the economy.

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Economics assignment
Figure 2: Household disposable income
(Source: ABC News, 2019)
The income of the household is falling and this one of the main reason behind the fall in
the overall living standards of the country. The income-saving ratio is falling and gross
disposable income is witnessing fall in the recent years. The principle of money neutrality is not
at standing at its position.
Conclusion
The article is showing that the average wage of residents of Australia are falling in
nature. On the other hand, along with falling disposable average income the medical expenses is
increasing in Australia. However, the economy can be improved if the government takes
initiative to increase employment related activities that will increase the income of the residents.
In order to minimize the gap of GDP, the Australian government need to increase government

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Economics assignment
expenditure on goods and services so that employment opportunity increases. Household
disposable income need to increase through increased level of participation.

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Economics assignment
Article 2: Unemployment edges down to 5pc despite a cooling economy
The name of the article is Unemployment edges down to 5pc despite a cooling economy
and Stephen Letts have written the article. The article was published in 24th Jan 2019.
Introduction
The article is claiming the fact that in spite of the economy is getting cooled down, the
Australian job market is not being able to capture the insight as the unemployment has increased
by 5% in December. On the other hand, the number of part time jobs has increased and full time
employment has decreased by huge margin. The current situation of the economy regarding
unemployment within the economy is not increasing and they are not improving.
Key points in the articles
In the Australian economy, about 21000 new jobs has been created and among that bulk
amount of part time jobs has been created. Only 3000 full time jobs has been shed of. Another
important aspect that has been reflecting that the participation rate is high but the number of
person searching for jobs are also increased as the people are not getting enough improvement in
their job looking abilities. Moreover, the economy is also looking at improving tools to measure
unemployment. The article is also claiming that Victoria is also having low rate of
unemployment rate of 4% and the WA is having highest unemployment rate of 6%.

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Economics assignment
Key concepts and economic principles
Figure 3: Unemployment rate of Australia
(Source: ABC News, 2019)
After the global financial crisis took place in 2009, the rate of unemployment is
increasing in the sense that the economy is not increasing their resources allocation and the
economy is mainly looking to incorporate the development of resources. The economy is facing
tough challenges in order to increase the employment as the employees are not getting desired
level of jobs based on their skills and potentiality.

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Economics assignment
One of the main argument regarding the fact that in order to increase the development of
resources, the economy will be able to indulge in a better position regarding the improvement in
the employment growth. It is important for both private and public to increase their consumption
expenditure wisely so that they can increase the resource development of the resources.
However, it has been discovered that in order to increase the development of resources, the
economy will have to depend on both private and public (ABC News, 2019). Through the
increase in the consumption expenditure it will definitely allow the economy to indulge the
improvement in the policies that will not only increase the concentration employment scenario
but it will also indulge the development within the economy.
Conclusion
The article 1 has claimed the fact that recently Australian economy has witnessed high
recession in the per capita income and the economy is not being able to upgrade human and
capital resources in order to reap the benefits. The health expenditure increased by 1.6%. An
important aspects that has been seen is that household income is falling and the wage is having
flat line. On the other hand, the article 2 is claiming the fact that in spite of cooling of economy,
the unemployment rate has increased in the economy by 5%. The economy of Australia should
improve the condition of unemployment through the incorporation of better industrialization
policy that will increase the production within economy. One of the important strategy that the
Australian economy need to take in order to increase the productivity is increasing rate of
industry. Increasing the skills and potentiality of the human resources based on the resources
available within economy in order to grow in future is important so that the labors can be
absorbed within best industry.

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Economics assignment
Reference list
ABC News. (2019). Australia just entered recession on a per capita basis. [online] Available at:
https://www.abc.net.au/news/2019-03-06/gdp-q4-2018/10874592 [Accessed 11 May 2019].
Altman, J., 2018. The Indigenous hybrid economy: A realistic sustainable option for remote
communities?.
Denny, L. and Churchill, B., 2016. Youth employment in Australia: A comparative analysis of
labour force participation by age group. Journal of Applied Youth Studies, 1(2), p.5.
Foerster, A.C., Peel, J., Osofsky, H.M. and McDonnell, B., 2017. Keeping good company in the
transition to a low carbon economy? An evaluation of climate risk disclosure practices in
Australia. An Evaluation of Climate Risk Disclosure Practices in Australia (May 12, 2017), 1.
Ravenhill, J. ed., 2017. Global political economy. Oxford University Press.
Unemployment edges down to 5pc despite a cooling economy. (2019). ABC News. Retrieved 14
May 2019, from https://www.abc.net.au/news/2019-01-24/december-employment-and-
unemployment-figures/10744278