Impact of Unemployment on Australian Economy: Analysis from 2008 to 2018

Running head: ECONOMICS FOR BUSINESS
Economics for business
Name of the Student
Name of the University
Author Note

1ECONOMICS FOR BUSINESS
Table of Contents
Introduction:...............................................................................................................................2
Unemployment in Australian economy:....................................................................................2
Concept of Unemployment in Australia:...............................................................................2
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

2ECONOMICS FOR BUSINESS
Introduction:
The Australian economy possesses a mixed-market structure that helps the country to
become a developed one. As of 2017, the amount of nominal gross domestic product (GDP)
of this large economy was 1.32 trillion while the number of total population was 24.4 million.
Since 2008, nominal GDP of Australia has fluctuated due to various external macroeconomic
factors while total population has increased steadily during the same period. This report has
tried to analyse the impact of unemployment on Australian economy from 2008 to 2018.
Unemployment in Australian economy:
Concept of Unemployment in Australia:
Unemployment is a macroeconomic situation, where a person seeks to get a job at the
existing market wages but remains unable to find one. By calculating unemployment rate,
this macroeconomic indicator sometime represents economic condition of a country.
Australia has adopted a unique concept of unemployment through considering the standard
international definition. In this country, people are considered as unemployed if they did not
work for minimum one hour in the last seven days and furthermore they are looking for a job
actively and can accept a new job to start from the next week (Marks, 2018). Moreover, the
country considers that unemployment can be of three types, which are, frictional, cyclical and
structural. Frictional unemployment occurs when a person changes job by leaving the old one
and finding the new one. This type of unemployment exists for short period and for this, the
government does not experience any significant problem (Moore, 2017). Cyclical
unemployment, on the other side, occurs due to business cycle. During the period of
contraction, the number of unemployed people within the economy increases while the
opposite situation occurs when the economy experiences expansionary phase. The Australian
economy also experiences structural unemployment due to technological advances, as
workers lose their jobs due to lack of skills. The last two forms of unemployment influence