Assignment On Unemployment in Australia
Added on 2020-04-01
21 Pages4154 Words372 Views
Running head: UNEMPLOYMENT IN AUSTRALIAUnemployment in AustraliaName of the StudentName of the UniversityAuthor note
1UNEPLOYMENT IN AUSTRALIA IntroductionIn the labor force, when some members are unable to find jobs to sustain their lives thenthey are identified as unemployed person in the economy. Those who remain unemployed arenot for same reason. When people are willing to work but are not able to find in the prevailingmarket wage then it is called involuntary unemployment. Sometimes, people remain unemployedby their choice. This type of unemployment is named as voluntary unemployment. State ofunemployment depends on the health of the economy. In times of economic boom, more jobs arecreated and hence unemployment is low. At times of recession or depression, the economycontracts due to declining aggregate demand. During this time, many people lose their jobs,contributing to unemployment.Australia has gone through rapid economic development with changing scenario andscope of the economy. Dependence of the economy has increased on the service sector whilegrowth in primary and manufacturing sector is comparatively declined limiting job opportunities.New job opportunities are opening up in a wide variety of services. Service including health,hospitality and education are accounted for maximum number of job creation. In agriculture, theadaption of advanced technology contributes to reduction in labor employment. Manufacturingsectors as well has a tendency of adapting labor saving technology to reduce production cost.Another factor responsible for job loss in Australia is the growing competition with importedmanufacturing. In this essay unemployment trend in Australia for the last five years are analyzed. InAustralia, some common types of unemployment are structural unemployment, cyclicalunemployment and frictional unemployment. When unemployment continued for a
2UNEPLOYMENT IN AUSTRALIA comparatively long period then it is called long-term unemployment. The overall scenario ofunemployment is viewed in light of its impact on the economy and consequent governmentpolicies to mitigate unemployment and move towards ensuring a full employment condition. Major Unemployment types in AustraliaBased on the influencing factors unemployment in an economy are of different typessuch as seasonal unemployment, cyclical unemployment, Structural unemployment, frictionalunemployment and disguised unemployment. Seasonal unemployment is found occupation thatlargely dependent on seasons (Goodwin et al., 2013). For example, in agriculture there is acertain crop cycle including specific time. After completion of the crop cycle, farmers dependingon only one seasonal crop, faces seasonal unemployment. Cyclical unemployment is inevitablefor an economy. Every economy has gone through business cycle fluctuation. In recession ordepression phase the economy contracts leading to contraction to economic activities and hencecontraction of employment opportunities. The unemployment resulted from business cyclefluctuation is called cyclical unemployment. In order to make economic progress, majorstructural changes often take place. Labor force unable to adapt such changes loses their jobsduring this time. Some industry often considers revising production technology. Laborerslacking sufficient skill become unemployed. Frictional unemployment is unemployment at timesof switching from one type of jobs to other (Davar 2016). This arises because of economicbottlenecks. Disguised unemployment is a situation where a person engages in jobs withoutmaking any marginal contribution. This means withdrawing this person does not make anychange in total output.
3UNEPLOYMENT IN AUSTRALIA Causes of unemployment in Australia Some common causes of unemployment in Australia are:Shutdowns of Industry: An obvious factor leading to unemployment in Australia is shutdown ofmany supporting industries. Those who lose jobs in this phase are not fully absorbed because ofinsufficiency in job opportunities (Argy and Nevile 2016). These industries include textile,agriculture, manufacturing like automotive and so on. Infrastructure: In the infrastructure, sector public and private spending declined in harder tomesfor the economy. This resulted moving out of people having skills like engineers moves tooverseas causing unemployment to local laborers. Off shoring: Off shoring is a major contributor of unemployment in Australia. This began fromwhen government stated offering incentives in terms of tax payment because of movingindustries or jobs there (Mavromaras, Sloane and Wei 2015). Mostly manufacturing and textilejobs are going off shore. Recession: In time of recession, companies adapt tightening policies where worker are lay offfrom their current jobs leading to unemployment in the economy.Immigration: Australian government allows immigration of mining laborers and internationalstudents (Carvalho 2015). This increases the strength of the labor force while contributing tounemployment for local laborers.
4UNEPLOYMENT IN AUSTRALIA Trends in Australian Unemployment Figure 1: Trends in Australian Unemployment in last five years(Source: tradingeconomics.com)The current rate of unemployment in Australia is 5.6%. The unemployment rate remainssteady and same with in the earlier month. The statistics for new job creation is Australia is54,200 (McLachlan 2013). As against the new job creation, the number of unemployed declinedis only 1,100. Labor force participation rate has increased slightly. Recent participation rate forlabor force is 65.3. In the previous year, this figure was 65.1 percent. The labor-forceparticipation rate attained highest level since 2012 and reached beyond expectation. Employmentin the economy jumped from 54,200 to 12,269,000 (Wilkins and Wooden 2014). This isconsidered as the biggest achievement in terms of employment creation. The employmentestimate for the period was 15,000. Both full time and part time employment in Australiaincreases. Increases in part time employment is greater than that of full time employment. Full
5UNEPLOYMENT IN AUSTRALIA time jobs increased from 40,100 to 8,392,300. Employment in part time jobs increases from14,100 to 3,876,700. Overall unemployment decreases by 1,100 to 727500. People are more interested in fulltime jobs than in the part time jobs because of greater job security. Number of people searchingfor full time jobs increases by 6,400 from 501600. People looking only for part time jobs havedecreased by 7,500 (Hawthorne 2016). Dependency ratio that is ratio of employment topopulation shows an improvement and becomes 61.6 percent from 61.4 percent. Condition of labor market Condition of labor market strengthens in the last few years. In 2016, level of employmentin the economy has increased by 1.9 percent. This is above the rate of average growth since thelast ten years. Employment growth though accelerated in the second half of 2015, the growthslows down in the first quarter of 2016 (Furlong 2016). The growth in employment between June 2015 and June 2016 was basically driven byhigh growth of part time employment. The part time employment grew by 3.7 percent andbecame 3,740,000 in 2016. There is a modest rate of growth of 1.1 percent for the same period.Increase in part time jobs is reflected in the increases in monthly hours worked. The level of unemployment in Australia fell by 3.1 percent. Unemployment rate declinedfrom 6.1 percent in 2015 to 5.8 percent in 2016. The improvement in unemployment rate showsshift towards traditional labor-intensive technology. The growth is mostly in service-basedindustries. New employment opportunities are created in 12 out of 19 major category industries(Boz, Durdu and Li 2015). Large increase is observed in social assistance, health care, retailtrade and construction.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Economics For Business - Assignment Samplelg...
|15
|3531
|80
Cyclical unemploymentlg...
|11
|1363
|459
Economics Assignment | Unemployment in Australia Assignmentlg...
|14
|3168
|220
Australia's Unemployment (pdf)lg...
|15
|3557
|37
Unemployment in Australia: Trends, Causes, and Government Policieslg...
|15
|3327
|313
Macroeconomic Performance - PDFlg...
|14
|3520
|54