Unemployment and its Causes in Sri Lanka and Australia

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
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1ECONOMICS ASSIGNMENT
Answer to 1
In present times, unemployment remains a major issue in Sri Lanka. In fact, the number
of the unemployed people is increasing on a daily basis. The issue is however prevalent between
the age group of 20 to 30 years. The primary reasons for the unemployment have been the
outmoded system of education and the lack of required skills of the people (Velnampy,
Achchuthan & Kajananthan, 2013). Further, the Sri Lankans prefers private jobs to government
sector jobs. Another reason for unemployment has been the lack of the computer knowledge
among the people.
Answer to 2
The unemployment is measured as percentage of the people in labor force that remains
unemployed. Measurement of the unemployment rate requires identification of the people
forming the labor force that represents the sum total of the employed and unemployed (Feng &
Hu, 2013). However, in Sri Lanka, unemployment is measured as a rate that considers measuring
number of the people looking actively for the job as the percentage of labor force. The rate of
unemployment decreased to 4 percent from 4.20 percent in the fourth quarter of 2017.
Answer to 3
The causes of unemployment in the Australian economy are as follows:
 Unemployment was due to the shutdown of the industry
 Decrease in the spending of infrastructure during the harder economic times