Study on Unemployment in Australia
Added on - 28 May 2020
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Running head: UNEMPLOYMENT IN AUSTRALIA LAST 5 YEARSUnemployment in Australia last 5 yearsName of the studentName of the UniversityAuthor note
2UNEMPLOYMENT IN AUSTRALIA LAST 5 YEARSIntroduction:Unemployment in an economy is a persistent factor in all economy and over the time,it fluctuates depending upon the various factors. It stunts the economic development andgrowth of the country and influence the sustainability of the economy (Balewski 2015).Unemployment reduces the disposable income of the households leading them to fail to meetthe autonomous expenditure (Guardiola and Guillen-Royo 2015). When it comes toAustralian economy, the effect of unemployment has been persistent in the economy (Ball,Jalles and Loungani 2015). This essay is meant to analyze the unemployment in Australiaduring the last 5 years and it will discuss the various factors that have caused the economy tohave it. Besides this, the essay will put some recommendations in order to overcome theburden of unemployment.Unemployment rate in Australia:With the rapid expansion of global economy and reduction in death rate around theworld, unemployment has risen over the time in Australia (Saunders, Wong and Bradbury2016). When it comes to Australia, then the economy is one of the most stable andsustainable western economy that has diverged economic structure. Though most of the jobcreation in Australia comes from the mining industry, but recent government spending haspaved the path for new sectors, which is expected to provide more jobs (Fleming andMeasham 2015). According to the figure 1 the unemployment rate of Australia is 5.4%,which is the lowest since 2013. Reduction in the level of unemployment is the directimplication of the fiscal and monetary reform of the country. During 2015, theunemployment rate was the highest, which was originated mainly because of the reduction inthe demand in the world market. Besides this, cyclical unemployment was another leadingfactor that has caused the rise in unemployment (Cuéllar-Martín, Martín-Román and Moral2017). With effective steps from the government, unemployment has felled and if the
3UNEMPLOYMENT IN AUSTRALIA LAST 5 YEARSscenario remains constant, then the government is expecting to generate more than 2 millionjobs within the next decade (Hajkowiczet al.2016).Figure 1: Unemployment rate in AustraliaSource: (Tradingeconomics.com, 2018)Figure 2 depicts that the rate of unemployment for the age group of 15 to 64 years iscomparatively moderate. Downward sloping curve of the figure 2, suggest that the morepeople are coming into the job market and higher level of participation rate of the Australianpeople has helped the government to curtail the unemployment rate for the country(Hawthorne 2016).Figure 2: Unemployment rate in Australia for 15-64 age groupsSource: (Fred.stlouisfed.org, 2018)
4UNEMPLOYMENT IN AUSTRALIA LAST 5 YEARSFamily utilization level of Australia is predictable at 64.9% that highlights the countryhas contained the unemployment level to a steady state (Mavromaras, Sloane and Wei 2015).This level of unemployment acts as the stimulus to the economy according to the Keynesiantheory of capitalism, however, it is higher than the 4% (Keynes 2016). Thus the country needto put more amount of focus to bring it down to the optimum rate of unemployment leadingthe country towards the better sustainability.Types and Issues of Unemployment in Australia:Level of unemployment in the Australian market is present since the time of greatdepression and it varies depending upon the aggregate demand of the mining industry(Cunningham 2015). Though Australia has diverse economy, but most of its employmentgeneration comes from the mining industry. Thus whenever, there is any shock in the miningindustry, the employment level tends to alter. This phenomenon can be seen by analyzing theeconomic performance of the Australian market during the 2006 to 2010. With reduction indemand in the mining industry, employment rose during that session. However, it isimportant to mention that Australian economy performed well compared to the other nationsthose have been facing recession during the 2008 with high demand of the mining products inthe world market (Bamiatziet al.2016). Economists argue that employment is one of thedrawbacks of the globalization and reduction in trade barriers has caused the Australianeconomy to face higher amount of unemployment. In order to analyze the unemploymentstatus of Australia and to discuss the various form of unemployment present in Australianeconomy during the last five year considering the participation rate and female employmentstatus is important.With the help of participation rate, the number of active member in the totalworkforce of an economy can be analyzed. It aids to discuss the scope of job creation in theeconomy and analyzes how well it has performed during the stipulated time (Nguyen 2016).