HI5003 Economics for Business

Added on -2020-02-24

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Economics for Business 1Economics for Business
Economics for Business 2Table of ContentsIntroduction......................................................................................................................................3Unemployment................................................................................................................................4Types of unemployment..................................................................................................................4Frictional unemployment:............................................................................................................4Structural Unemployment:...........................................................................................................4Cyclical Unemployment:.............................................................................................................5Seasonal Unemployment:............................................................................................................5Reasons for unemployment in Australia..........................................................................................5Statistical data showing unemployment in Economy:.....................................................................7Actions taken by the government to overcome unemployment:...................................................12Conclusion:....................................................................................................................................14References:....................................................................................................................................15Table 1: Employment and unemployment growth in past 5 years Source: QueenslandGovernment (2017)..........................................................................................................................8Table 2: Australia Unemployment chart Source: (Trading Economics, 2017).............................10Table 3: Unemployment in OECD Countries Source: (OECD, 2016)..........................................11Table 4: Youth Unemployment in OECD Countries Source: (OECD, 2016)...............................12
Economics for Business 3IntroductionUnemployment is one of the major topics of economics. This report is aimed to study indicationsshowing that the rate of jobless people has started rising and getting the job becomes harderacross Australia. This is specifically seen in the youngsters. An increase has been seen in thenumber of jobless people in Australia. The unemployment rate among youngster is 16.8% andthis is expected to stay at three times the general rate. When compared with other countries, thesituation is worse in Europe.In the recent years, economic environment of Australia has observed significant changes.Unemployment occurs when a capable person is searching for the work and is unable to find orget the one. The scale of unemployment is decided by the rate of unemployment of a specificnation in terms of the entire labor force. The most important reason for the unemployment isrecession. When an economy started decreasing, then the level of occupation also likewise falls.The rate of unemployment around the globe is positive, while it is high in some nationsspecifically in least urbanized and developing countries. Still it is low in few nations alike to thedeveloped countries. The rate of unemployment depends on the conditions of economy. Ifeconomy of any nation is performing well, then unemployment rate will be low and if not, thenrate of unemployment will be high. Not only economy but also other parameters ofmacroeconomics also affect the rate of unemployment. This essay also explains the variousaspect of unemployment in Australia and shows the figures and rate of unemployment over thelast five years.
Economics for Business 4UnemploymentSeveral activities are performed in an economy for the proper functioning and growth of thecountry. The parts of the population which are actively looking for the employment but are notable get the work as per the skills and quality, than it is the situation of unemployment (Sharp,2013). It is that part of population, which is out of the job for a certain period of time. The ratioof the unemployed population to the total population is known as unemployment rate. All thecountries are facing problem of unemployment at higher rate after global economic crisis of2008. It recovered in the following years, but still it is same after 10 years of recession at around5% at the end of year 2005. It was 5.4% in year 2012 and expected to remain 5.7% in year 2016-17 (Jericho, 2014). It is responsible for various problems in Australian economy.Types of UnemploymentFrictional Unemployment:Frictional unemployment is a condition, where a person already working is seeking for a newwork for improved opportunities. Individual seeking for first job but due to disparity of theinterest, skills and consideration for the work, working population move from one job to anotherfor better opportunities (Mankiw, 2014). Other condition for the fictional unemployment is whenbusiness finds that the person applying for work is not competent with the skills of performingthe required work.Structural Unemployment:Structural unemployment is the condition, in which the ability of a worker does not meet theneeded specific skills required in the industry. This results in gap between the required skills andavailable resources. There are several reasons for such difference like changing technology,obsolete of requirement over a period which consequences to incompetency of the workforce for

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