Macroeconomics

Running head: MACROECONOMICS
Macroeconomics
Name of the student
Name of the university
Author Note

1MACROECONOMICS
Table of Contents
Answer 1 (a):...................................................................................................................................2
Answer 1 (b):...................................................................................................................................3
Answer 2:.........................................................................................................................................4
Answer 3:.........................................................................................................................................6
Answer 4:.........................................................................................................................................9
References:....................................................................................................................................11

2MACROECONOMICS
Answer to question 1 (a):
Job growth is a statistical measurement through which the government of any country can
track creation of new jobs on a monthly basis (Adelino, Ma and Robinson 2017). Hence, this
figure measures economic expansion of the country and consequently represents health of the
national economy.
Labour force participation rate, on the other side, measures the proportion of working-age
population, which actively engages within a country’s labour market. They can be engaged
through working or seeking for a job (Elsby, Hobijn and Şahin 2015). Thus, participation rate
gives the indication of available supply of labour compare to the working age population for
producing goods and services. Hence, this rate provides the distribution of the total working
force of a country.
The unemployment rate is another concept related with labour market. This rate
represents the share of total labour force, which is jobless, in terms of percentage. This rate is
considered as a lagging indicator, which implies measurable economic factor. This factor
changes when the economy starts to follow a specific trend (Theut Riis, Thorlacius, Knudsen
List and Jemec 2017). Thus, this unemployment rate rise when the economy experiences poor
conditions and jobs become scarce. On the contrary, if the economy follows a healthy rate as
well as huge number of jobs, then this rate could be decreased. In this context, it can be
mentioned that labour force participation rate and unemployment rate has opposite relation.
Thus, these three indicators has close link through which labour market of Australia can
be described. Through job growth, the economy can increase its labour force participation rate in
job market. This in turn can reduce the unemployment rate and represent a healthy labour market

3MACROECONOMICS
(Mokyr, Vickers and Ziebarth 2015). Thus, according to the given scenario, more jobs are need
to create for reducing the unemployment rate.
Answer to question 1 (b):
The official unemployment rate is used in Australia to understand its labour market
condition. This situation occurs when someone wants to work though becomes unable to find
one. The job growth in this country fails to achieve the target, as full-time employment level
declines. The number of part-time job increases considerably and this reduces the rate of jobless
workers (Beveridge 2014). Labour market in Australia has reached almost near to its full
employment level. Therefore, unemployment rate is not reducing further, as many people are
entering into the job market for seeking job. As a result, work force participation rate also
becomes high. However, overall the number of part-time work becomes high compare to full-
time work.
Full employment implies an economic situation, where the economy can successfully
utilises all available labour resources efficiently. Full employment considers both skilled and
unskilled labours. Job growth considers both part-time and full time work while unemployment
rate of Australia also considers the same (Frey and Osborne 2017). Thus, job growth cannot
affect official unemployment rate due to full-time positions compare to part-time ones.