Unemployment Effects and Remedies - PDF
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Unemployment Effects and Remedies 1UNEMPLOYMENT EFFECTS AND REMEDIES FOR THE AUSTRALIAN ECONOMYOVER THE LAST HALF DECADEby (Name)The Name of the Class (Course)Professor (Tutor)The Name of the School (University)The City and State where it is locatedThe Date
Unemployment Effects and Remedies 2Unemployment Effects and Remedies for the Australian Economy over the LastHalf Decade IntroductionIn spite of the fact that unemployment has been falling in the last half of the past decade, a significant number of Australia are still unemployed with an estimated 490,000 workers being categorized as underemployed. Therefore, a critical lack of long-term and suitable employment still remains an issue for more than one million Australian; which in turn results in the imposition of high social cost on families across the country [ CITATION Oxf16 \l 1033 ]. According to a survey conducted by Newspoll via the Australia Institute, a significant number of unemployed Australians (63%) are willing to work in entry-level jobs as long as they are guaranteed regular compensation. The Australian Government has in recent years tried to enact new fiscal policies with the aim of reducing the unemployment situation in Australia. One such fiscal policy deals with increment of workers’ mandatory leave days. This fiscal policy is founded on the principal that individuals are more productive when they are well rested and relaxed [ CITATION Cha18 \l 1033 ].Another data survey by Newspoll showed that more than 50% of Australian would be willing to accept an increment in leave days if it meant forgoing a 4% income increment. According to the economic researcher Saunders, the greatest poverty drive in Australia is not illiteracy but wide spread unemployment. OECD recognized that the average number of children born in families with unemployed guardians or parents was three times more than those brought up in full employment households[ CITATION Str17 \l 1033 ]. The unemployment rate realized a twelve year low in 2017 as a result of job creation in Australia through government incentives aimed at improved infrastructure development. In Addition, the Australian Government is trying
Unemployment Effects and Remedies 3to combat unemployment through the introduction of labor market flexibility. According, to government officials, the improvement of workplace flexibility will better employee-employer relationships within business establishment resulting in better work place performance[ CITATION OEC17 \l 1033 ]. Fiscal and NBN Policy for UnemploymentThe Australian Government stated in last 2016 to make legislations that would result in increased labor market flexibility. These legislations were part of fiscal policies directed towards unemployment reduction by improving the satisfaction of employees and employers within the workplace setting[ CITATION Mic17 \l 1033 ]. Labor market flexibility seeks to eradicate traditional barriers that prevent employers from conducting successful work reorganization, and cause decline in job security. One of the ways that the Australian Government is doing this is through the removal of unfair dismissal legislations meant to favor small businesses and their respective owners [ CITATION War17 \l 1033 ]. Even thou labor market flexibility has created employment opportunities for part-time employees it has however created new problems for employees. The major problem associated with labor market flexibility is precarious employment; which refers to a situation where employees are offered employment that is devoid of holiday pay and sick pay. As such, the part-time jobs linked to labor market flexibility are plagued with diminished security of tenure. This leads to reduced disposable income in the Australian economy but considerable more than what would be witnessed if the market had far less part-time works. Labor market flexibility is great for solving short-term unemployment problems but it does not create long-term job security in the labor market [ CITATION Oxf16 \l 1033 ].
Unemployment Effects and Remedies 4Another government lead initiative meant to boost employment has been the deregulationof the Australian labor market. This fiscal policy resulted in uneven distribution of work across Australian which lead to wide spread unemployment due to refusal by businesses to hire more employees[ CITATION Gar17 \l 1033 ]. Therefore, policy makers are trying to create balance byshifting labor market dynamics to favor the movement of workers to areas with over-abundance of work, or move employment opportunities to marginalized and economically deprived regions of Australia [ CITATION Sav17 \l 1033 ]. A study has should that an average full-time employed male Australian works roughly 44 hours a week which is significantly higher than the 32 hours recorded in 1982. Business analysts believe that the demand for increased productivity should be met by increasing the labor resource but not increasing the work hour; more times doesnot guarantee a greater yield it just creates a theoretical illusion of efficiency. Moreover, the number of individuals who work more than 45 hours a week has increased with the introduction of labor market flexibility, and the deregulation of the labor market. A report filled by the Australian Institute pushes for an alternative to the ideology of flexibility one that is based on a voluntary allotment of an employee’s work hours to another individual. This system is set to create better employment results compared to government lead incentives that favor business owners by making employee dismissals easier [ CITATION Sav17 \l 1033 ]. Research has shown that if individuals worked according to their personal preferences, the leave hours taken by full-time employment workers would undoubtedly create at least 100,000 full-time jobs for unemployed Australians to take up. This type or work redistribution would also be observed in terms of financial stability: The income would shift from individuals with too much work to individuals with little or no work [ CITATION War17 \l 1033 ]. The relocation of funds has been used in some parts of Australia like Sydney to boost economic
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