Macroeconomic Policy Brief Report: Australian GDP and Unemployment

This report provides an analysis of the macroeconomic policy brief concerning the Australian economy. It examines the trends in Australia's GDP, highlighting the peak values in 2012 and 2013 and the subsequent fluctuations, including a decline in 2018. The report discusses the relationship between government purchases, export rates, and the need for fiscal adjustments to stimulate economic growth. Furthermore, it delves into the unemployment rates, presenting the increase from December 2018 to August 2019, while also considering the growth in the employed population and the potential for future declines in unemployment through the utilization of the existing labor force and new job creation. The report emphasizes the importance of enhancing export rates, controlling consumption, and implementing improved fiscal policies to foster economic stability and achieve sustainable growth.

Macroeconomic

TABLE OF CONTENT
PART B: Policy brief report............................................................................................................1
REFERENCES................................................................................................................................3

PART B: Policy brief report
The GDP of Australia was maximum in year 2012 and 2013. In the year 2018 the GDP
rate is low as compare to the peak Australian GDP. There has been minimum appreciation in the
GDP rate. There has been huge gap between the investment activities and the net export of the
country. The net export to and from Australia is not event 1% of the total GDP while the total
investment activities shows 24.14% of the GDP value. The government purchases and enhanced
total consumptions of the goods and products forms the major proportion of the GDP. This is one
of the major reason due to which there is proper alignment between peak GDP value and
maximum export value. The same pattern was observed in the year 2013 when Australian GDP
was satisfactory. However in the year 2018 the gap has been widening and thus there is need
that government must emphasis on reducing government purchases. It will help to increase the
export rate so that along with the spending capabilities of the people their ability to earn can also
be increased. This will assist the government to make satisfactory improvements in the GDP and
to make it competitive to the highest value which was observed in year 2013 as well. In order to
increase the GDP the government must focus on enhancing the export rate and to lower the
government purchase for the increased consumption (Stanford, 2017). Instead of importing
products the efforts must be made to raise the production of goods within Australia. Another
significant approach which can be used by the Australian population is to control their
consumption as per their earnings so that there is balance between GDP rates and consumption
of goods.
The unemployment rate has been gradually increasing in Australia and thus there is need
to emphasis on the issue. The continuous rise in the unemployed labour force cannot be
considered as the good sign for the economic growth of Australia. There has been increase in the
unemployment rate by 0.30% from December 2018 to August 2019. Despite increase in the
unemployment rate it has been also observed that number of employed population is also
increasing. There has been rise in the contribution of the adult population in strengthening labour
force. Though in the short term unemployment rate is increased but the overall movement of
labour force from adult population indicates that in the near future Australia is expected to have
decreasing rates of unemployment. Though creation of new job opportunities for the unemployed
people is one of the critical element of unemployment policy but there is also need to utilise
existing jobs. There are many jobs which demands participation and attention of the unemployed
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adults. The government and social factors must encourage adults so that they are forced to seek
for such hidden jobs (Gunnell and Chang, 2016). This measure will definitely help to lower the
unemployment rates. The improved fiscal policies and creation of new job opportunities will lead
to the creation of jobs for existing population which is not able to approach the suitable jobs as
per their requirements and calibres.
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REFERENCES
Books and Journals
Gunnell, D. and Chang, S.S., 2016. Economic recession, unemployment, and suicide. The
International Handbook of Suicide Prevention. Hoboken: Wiley. pp.284-300.
Stanford, J., 2017. Briefing Note: Labour Share of Australian GDP Hits All-Time Record
Low. The Australia Institute: Centre for Future Work. 13.
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