Introduction
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).
Conclusion
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.
"Macroeconomics/Employment and Unemployment." Macroeconomics/Employment and Unemployment - Wikibooks, Open Books for an Open World. N.p., n.d. Web. 04 July 2017.
For what has been a very, very long time, our elected representatives have sought to achieve “full employment” as a national goal….but full employment has been suspect as a possible cause of inflation, and is therefore weakened by decisions of the Federal Reserve, in an attempt to retard inflation. In terms of causes, unemployment has changed; the character, degree of severity, possible solutions of unemployment over the last ten years or so have been reduced, and has morphed in terms of just who is experiencing the unemployment and the suggestions for answering the problem. It has been the traditional fundamental trades, like manufacturing, viewed as part of the shift in the economy towards the new information age model, as workers transition from a manufacturing economy to a service economy, all the while over-coming the obstacles set forth by our own government.
Definite changes in work patterns have been occurring over the past years. The number of Australians in paid employment is rising, for example from 1966 to 1998 the number of Australians in paid employment increased by 77%, from 4.8 million to 8.5 million. Employment rates for women are moving closer to rates for men, with an increase in the female employment rate across all age groups except the very young and the very old (and conc...
Unemployment is a social problem in Australia, which affects a majority of society in many ways. Not only can it cause financial debt to families, but from there it can cause family breakdowns, social isolation, shame and it can even lead to violence. The Conflict theory perspective explains how unemployment can be caused by class and power by focusing on the inequality within society. The inequality sequentially predicts that the poorer members of society struggle to find employment, to be able to get education to find suitable employment and are.
Firstly, South Australia’s mining industry immensely increases job opportunities in the society. For instance, South Australia is hosting 34 emerging minerals developments indicating the demand for skilled mine workers of around 14,800 personnel as stated by Validakis (2013). On the contrary, mining industry negatively impacts the South Australian economy if it is compared to the other states, as it has reduced the state’s Gross State Product (GSP) growth by 0.16 per cent. This is due to competitions with other states that have larger exposure to mining (Duc, Bailey & Marshall 2013). Nonetheless, about 15,000 new mining jobs in South Australia will need to be filled over the next seven years according to a report from iMINCO (2013). Moreover, the number of jobs is expected to more than double by year 2030.
“The global financial crisis has sharply increased unemployment across the world to more than 210 million people, an increase of over 30 million since 2007, hitting advanced economies especially hard and having long-term social repercussions, including on health and the children of those laid off” (IMF, 2010). This is one of several statements or statistics relating to the negative impacts of the 2008 global financial crisis on employment situation. In general, the unemployment rate, in either developed or developing nations, has grown dramatically in the years following the crisis. While the severely pessimistic signs of labor market have been recorded in the world’s largest economies, those considered as the least and less developed states
The baby boom as well as increased immigration brought unemployment to 5.2% which at the time was a 28- year low, as over 150,000 jobs were created. Economic growth reached almost 5% and Australia’s economy was in a very good place. With unemployment rates as high as 6.3% now, perhaps it is the perfect time to increase population and create larger market sizes, more demand and therefore more jobs.
Government policy environment – a desire to reduce unemployment and make the economy attractive to inward investment as a source of employment and long-term growth
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want to work and can work according to the current pay they can get for a job they chose to work as. There are four major types of unemployment: frictional, structural, cyclical and seasonal unemployment.
Referring to ‘Figure 2’ a trend is shown escalating in business investments form the year 2005 onwards suggesting certain businesses within Australia were benefitting from this boom. In correlation to this, the trends of unemployment were affected as a decrease arose from being 5.0% in 2005 to 4.2% in 2008.
Above summary we can see the world has not prefect employment, but we can pull down unemployment rate. Firstly the government needs to help the unemployed to find work, expanding the network information can allow the unemployed to find work in the information. To attract foreign investors to invest in local business, the government needs to protect their interests, expand production capacity, which means more quotas to the unemployed job. Second is need to improve the quality of education, requires course more effective labour market, including through the development of practical skills.
Research the reasons for the skills shortage in the Australian labor market and discuss government policies that could be used to address this skills shortage.
The economy tend to move from boom to recession, it is difficult for government to maintain and achieve macroeconomics objectives. At this time, there are “conflicts between government macroeconomic objectives”, which is this extended essay main theme. This essay will look at the government macroeconomic objectives, the conflicts between macroeconomics objectives, the best policy or mixture of policies to minimize the conflicts between macroeconomics objectives and recommendations, which are classified as main objectives and additional objectives.
Issues of unemployment are not something new as many countries are struggling to solve this issues including Brunei. Brunei’s population have been rising since 2001 (diagram 1). In diagram 2, it shows that Brunei labour force in 2011 was 185,900 people which are higher compare to those in the previous years (175,700 people in 2007 and 179,600 in 2009). With respect to the rising amount of labour force, both the employment for man and women rises (Diagram 2). However, the unemployment rate in Brunei have been fluctuating since 2007 (3.6%) and in 2011, the unemployment rate is at 1.7% (diagram 3). Despite the lower rate, issues of employment are still issues in many countries. According to the education minister, roughly 20,000 school leavers are trying to find jobs. This number account to 5% of Brunei populations. They aimed to reduce the number by 80% as high unemployment can lessen the people quality of life, slower economic growth and create gap between the rich and poor. Higher number of registered jobseekers does not automatically indicate the rate of unemployment.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public