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Economics For Business - Assignment Sample

   

Added on  2021-06-14

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Running Head: ECONOMICS FOR BUSINESSEconomics for BusinessName of the StudentName of the UniversityCourse ID

ECONOMICS FOR BUSINESS1Unemployment is signified by inability some labor market participants to obtain a job tosupport minimal standard of living. The nature and types of unemployment varies among nationsdepending on specific structure of the economy. Therefore, in analyzing unemploymentconsideration needs to be given on structure of the targeted country. Australia has passed withrapid change in its economic structure (Christiano, Eichenbaum and Trabandt 2016). The shareof service industry has increased significantly while that of manufacturing sector declined.Manufacturing sector of Australia hiring a significant proportion of labor force, a decline inmanufacturing causes unemployment among many people. Construction and mining are twosector that generate huge unemployment in Australia. A declining trend in both the sectorfollowing a global slowdown and housing market crisis worsen the labor market condition inAustralia. The nature of jobs has also been changed overtime. The implication of unemployment is not limited to economic domain. The unemploymentproblem extends far beyond. Persistent unemployment imposes budgetary, financial and socialimplication. The unemployed people are unable to supply necessary support to sustain daily life.The uncertainty resulted from unemployment of current generation trickled down to nextgeneration (Rothstein and Valletta 2017). Unemployed persons are unable to send their childrento school and lack of formal education creates further unemployment. The worsening conditionof health and education leads to social deterioration. The paper critically analyzes dynamics of unemployment in Australia. Theunemployment problem of Australia is discussed along with causes of unemployment,unemployment among different groups of people, unemployment in different states andgovernment policies to achieve full employment in Australia.

ECONOMICS FOR BUSINESS2Several factors explain causes of unemployment in a nation. Like other nations, inAustralia also unemployment is caused by structural and cyclical reasons. Structuralunemployment is the outcome of skill shortage. This occurs when workers lack skills required toperform specific type of jobs. One example of structural unemployment in Australia is theunemployment resulted in manufacturing industry from adaptation of automation technology(Keynes 2016). An advanced knowledge and skills are required to sustain jobs in the industry.Those who lacked such skills became unemployment. Business cycle fluctuations another factorresponsible for time to tome unemployment in Australia. The business cycle phases aredescribing by period of expansion and recession. During recession following a slowdown ineconomic activity labor demand decline causing unemployment to increase significantly.Production and output expands during phase expansion. As demand for labor increases,unemployment falls. Unemployment caused by cyclical fluctuation is termed as cyclicalunemployment (Gregory and Smith 2016). The economy experienced recessionary pressureduring early 1990s and in 2008 resulted from global financial crisis. Another short-termunemployment is frictional unemployment. People experiences a short-term unemploymentwhile shifting between two jobs. In addition to these forms of unemployment, other labor marketproblem includes hidden unemployment, disguised unemployment and underemployment.

ECONOMICS FOR BUSINESS32013201420152016201720185.205.305.405.505.605.705.805.906.006.106.20Unemployment rateYearUnemploymentFigure 1: Unemployment in Australia(Source: data.worldbank.org 2018)The last five years of Australian labor market is characterized by several upswings anddownswings. Starting with 2013, the measured rate of unemployment in the last quarter was5.8%, one percentage point lower than that exited one month back. Nearly 712,500 peopleaccounted to be unemployed in the labor market during this year. Owing to improvement in labormarket condition the underutilization rate decreased. Underutilization though had declined but isfailed to mark any improvement in the rate of labor force participation. The number of employedpersons increased. More than 1800 persons added to the group of employed people. There was aconsiderable increase in full time employment and decline in part time employment. This trendwas reverse female participant in the labor market (Carvalho 2015). Full time employment forfemales declined completely that pf part time employment increased. The labor market conditionworsens in 2014 with rate of unemployment hiked to 6.3%. There were 777700 unemployedpersons in labor market as against 712500 in 2013 (abs.gov.au 2018). The increased

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