Essay On Macroeconomic Performance

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Macroeconomic performance plays a crucial role in a country’s vicissitude. Its main goals are to achieve maximum employment, price stability, economic growth and balance of international payment. Recently, unemployment in Australia has attracted much attention from home and abroad. The unemployment rate in Australia has edged up to 6 percent, the highest level in more than ten years. In this report, I will outline the current situation, reasons and impact of unemployment in Australia. Then I will discuss the groups that may be impacted by a high unemployment rate. Next I will draw out and discuss relevant economic theories in the news articles.

An overview of current unemployment situation in Australia
The employment situation in Australia is not optimistic now. According to the data of the Bureau of Statistics in January, more than 7,000 full-time jobs were removed out of the job market and only 3,400 part-time positions were added, which meant that lots of people became unemployed (Kwek, 2014a). The participation rate remains around 64 percent. It is estimated that the unemployment rate will go on edging up in 2014. There are many reasons that contribute to the high unemployment rate in Australia. Due to the weak imports caused by soft domestic demand and the reduction in the investment in mining industry, mining companies began to reduce the staff. For example, more than 1300 mining workers at the Forge Group were laid off (Kenny, 2014). In addition, lacking confidence in the future economy, some large companies of non-mining industry, such as Qantas, Toyota and Holden, began to lay off their workers, which aggravated the situation. The high unemployment rate can have negative influence on social stability and ec...

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...(Cecioni, Ferrero and Secchi, 2011).

Employment situation and economic fluctuation can affect the stability of the country. Australia is experiencing the highest level of unemployment in more than 10 years now. The reasons that contribute to the situation include less confidence in future economic conditions and the reduction on mining investment. A high unemployment rate can damage social stability and hider economic growth. The demand of labour decrease and the quantity of labour employed decreases. In order to stop unemployment aggravating, the GDP growth rate should be above 3 percent. The government have tried to solve the problem of unemployment with expansionary fiscal policy and monetary policy. However, the results are not satisfactory. The government can stimulate employment by increasing government spending and forward guidance for the public.
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