Unemployment Rate in Australia

Added on - Dec 2020

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Unemployment
EXECUTIVE SUMMARYIn Australia unemployment is one of the most vital issue that it is presently facing.Unemployment rate in Australia have raised to 5.4 percent and about 14,000 jobs havedisappeared. In this report, unemployment issue in the nation for last 10 years is been examinedand its effects on country's economy is been studied. Due to various factors like innovativetechnology or fully automation in various industry people are losing jobs. As unemploymentissue have increased in nation it has severe impact on its economy. Such as overall spending inthe economy would reduce and people would take loans or credit for their daily necessity.Aggregate demand and economic growth rate can be raised with the help of government fiscalpolicies for reducing unemployment within Australia.
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................1INTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONUnemployment rate in Australia have risen from 4.2 percent in 2008 to 5.4 percent in2018. Overall of 12,000 new jobs were added in May 2018, below the expectations of 18,000jobs. Unemployment in Australia is defined as a person having no work or job or unemployedfor 52 weeks. In this report unemployment issues in Australia in last 10 years is been examinedand its impact on Australian economy is been studied. The concept of unemployment is notprecise. In countries like Australia this can be true, where through formal economy, productionof goods and services are done and for low wages people work. Immense level of social andeconomic damage has been caused by long term unemployment. Due to higher unemploymentrates in the nation, there would be political instability in Australia.Government have reduced the power of trades unions who would bargain for wages whichare above level of market clearing and cause real wage unemployment. With this policygovernment will solve real wage unemployment situations in Australia by reducing andrestricting influence of trade unions, and has implemented various policies towards reducingunemployment from the nation. Unemployment is a major event that occurs in a persons' life. Itcan have a destructive impact on a person's life and in economy of a country.Unemployment can be a loss of priceless resources that are productive to the economy.Major negative effect of Long term unemployment's is wastage of skills. Demand side policiesand supply side policies are being made for controlling unemployment in the country. Demandside policies involves monetary and fiscal policies, cutting interest rates, increasing aggregatedemand, etc. Supply side policies involves subsidies provided to firms for encouragingestablishing new industry in depressed regions, training and education, flexibility in labourmarket, etc.MAIN BODYStandard international definition of unemployment is adopted by Australia, which statesthe meaning of unemployment: as for at least one hour in a week people are unemployed andactively seek for work and accept any job for low wage (Carvalho, 2015). People who really dowant to work, but have given up continuously looking for a job, are excluded fromunemployment measurement. Those who have been unemployed for 52 weeks or more aretermed as long term unemployed. Large changes have been experienced by the Australian1
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