Unemployment in the Australian Economy

Economics

ECONOMICS 1
Table of Contents
Introduction................................................................................................................................2
Why there is unemployment exist in the developed economy?.............................................2
Measurement of Unemployment............................................................................................3
The gap in the Measurement of the Unemployment..........................................................6
Causes of Unemployment in the Australian Economy..........................................................7
Relationship between Inflation and Unemployment..............................................................7
The Philips Curve...............................................................................................................8
Regions of Australia with different in Unemployment issues...............................................9
Queensland.........................................................................................................................9
Victoria...............................................................................................................................9
Policies that can be implemented by the Australian Government to Decrease the rate of
Unemployment.....................................................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14

ECONOMICS 2
Introduction
The aim of this report is to discuss unemployment in one of the developed economies
that is Australia. The paper is being presented in order to highlight the reasons for
unemployment in the country and the causes of unemployment. The paper has also elaborated
the relationship between inflation and unemployment and its analysis in the context of
Australia. In addition to this, the paper is conducting the analysis of the two regions of
Australia that is Queensland and Victoria with different unemployment issues and their
analysis. In the end, the paper is provided the recommendation related to the type of policies
the government of Australia can implement for decreasing unemployment. Unemployment in
the economy takes place when an individual is actively searching for the job or work and is
unable to get it. Unemployment term is mostly used as the measurement of the economy’s
health. The frequent unemployment measure is the rate of unemployment, which is calculated
by the number of people employed, divided by the number of the labor force. Unemployment
is considered as one of the key economic indicators as it provides the signal related to the
capability or inability of the workforce to willingly get the profitable work to add to the
economy’s productive output. Increased unemployed people reflect less overall economic
productivity of the country (Boland & Griffin, 2015).
Why there is unemployment exist in the developed economy?
Unemployment is said to be one of the measures of the way the workforce is working
at any time and is broadly utilized and deliberated by media, government, and economists to
evaluate the spare labor capacity level in the economy. All the economic players take a low
level of unemployment desirable (Keynes, 2018). The existence of unemployment in the
developed economy is due to the participation of the labor force because it contributes to the
productivity of the economy. According to the analysis, at the end of the great recession

ECONOMICS 3
period, the women workforce started leaving jobs in the developing nations. There was a
decrease in the participation of the female labor force in the United States has since 2009 and
according to the report of April 2015, the participation of the female labor force has again
decreased to 1988 levels of 56.6% (Ospina & Tzvetkova, 2017).
Measurement of Unemployment
Unemployment takes place in the economy when a person is willing as well as
capable to work but do not get the job. The rate of unemployment is unemployed people
percentage in the labor force. Accordingly, evaluating the rate of unemployment is needed to
identify who is involved in the labor force. The labor force comprises those people who are
either unemployed or employed. Identifying who is unemployed or employed comprises
making applied judgments, like how much work that is paid is required by someone in order
to be included in the list of individuals with a job (Reserve Bank of India, 2019).
Source [(Reserve Bank of India, 2019)]