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This is the solution of Australian economic assignment help in which we discuss the Australian government policies for unemployment
Unemployment is the most crucial issue being faced by the economies and the common people all over the world. Large numbers of population is going through a difficult phase of unemployment which highly somehow affects the globalization economic conditions of the country as well. Unemployment is generally defined as the situation in which an individual of working age is willing to work in be in full time employment but is unable of getting any job. It mainly represent the amount of people who are not doing any of the work but are willing to get engaged in any of the job. The unemployment is been stated in terms of percentage and is computed by dividing the number of people who are not employed by the total number of work force.
The work force is generally the group of the people who are willing to work excluding the retired, disabled and the one who are not looking for any job for specific reason. The major group being identified in the unemployed is the young generation who are not either receiving the jobs or not finding the suitable jobs for them. Therefore, the current assessment is been carried out with the purpose to define the unemployment in detail and identify the relevant aspects of the same. It would entirely focus on the unemployment crisis of Australia along with the unemployment rate in the country. The assessment would also identify the types of unemployment being found in the country and the major causes of the same.
Furthermore, the study would also highlight the Australian government policies with respect to the unemployment specifically. It would even include the information about different regions of Australia such as Tasmania, NSW, Qld, SA, and WA in the assessment and helps in gaining an enhanced understanding about the unemployment and the related facts of the Australian economy.
According to Meng.et.al (2013) unemployment has become a widespread issue which could impact the economic conditions in terms of productivity and development of the whole. The rate of unemployment is been signified as the percentage of the overall workforce which is not been employed anywhere and is searching for the suitable work or to be employed. It has been generally seen that there are two types of people who fall in unemployed category on who is willing to work but not having any of the opportunity or job and the other is the one who have an opportunity but seeking to have better options is termed as also unemployed only. Unemployment had taken a drastic phase as had increased with the higher increasing rate in the recent times which requires to be improved extensively. In context to the Australian economy impacts, it has been seen that the unemployment rate had been raised to the highest peak currently. As per the data of Australian Bureau of statistics, the unemployment rate had gone up to 6.4% which was at the highest levels in past 12 years mainly due to the increased number of population searching for work.
Although, the rate of unemployment in Australia is expected to fall approximately about 5.6% from 5.7% in the year 2016 and meet the market levels effectively. It has been identified that this the lowest jobless rate in part 5 years as the country lost 3900 jobs and the unemployment rate of Australia has been averaged at 6.93% since many years till 2016 which reached the highest peak of about 11.10% in the year 1992 which then reduction of 4% in the year 2008. The unemployment rate is generally recorded by the Australian Bureau of statistics which looks after the data and information about the work force and the fluctuation in the number of people either employed or unemployed (Uddin.et.al, 2016).
Increase in the unemployment is been considered as one of the biggest economic and social challenges being faced by many of the economies. It mainly affects the young generation along with the growing number of people who are kept out of the labour market for more than two years. It has been identified that the Australian had creates more than 15000 jobs in a month and records an annual rate of 1.5% but due to the increase in the working age population the annual rate increased to 1.75% which lead to an unavoidable growth in the unemployment.
Some of the major regions of Australia such as Tasmania, NSW, Qld, SA, and WA are also highly impacted due to the rise in the unemployment rate in the country. Out of these, Tasmania is been recorded with the highest rate of unemployment reaching to 7.6% from 7.3% on a season ally adjusted basis in some of the previous months. The unemployment rate in Queensland had rose from 6.3% to 6.8% specifically. Moreover, the statistics of New South Wales depicts the rate of unemployment increased from approximately 5.7% to to 5.9% and Western Australia recorded a rise of 5.2% from 5% while in the South Australian region the rate had declined to 7.2% from 7.3% particularly. Argy and Nevile, (2016) stated that there are immense number of factors which have contributed in the increments in the rate of unemployment such as weak labour demand on regular basis which leads in slow growth of employment as compared to the supply of labour and the structural influences which affects the effectiveness and efficiency which is been matched with the unemployed workers to vacant jobs.
The employment rate affects the Australian economy to the great extents as it reduces the income levels of the people and the value in the economy. It is been seen that the population going through a long term unemployment leads towards the social and economical issues in the country. It incurs the lower levels of income of the family which reduces the purchasing and consumption power as well and thus affects the economic condition directly. The low income levels would lower down the demands of goods and services and would largely impact on the economic growth as well (Shimer, 2012). The reduction in demands of expenditures would influence the governmental tax patterns and collections which directly lead to the insufficient funds for the social factors and the infrastructural activities.
Feather, (2012) discussed that there are different types of unemployment which could be identified in various regions of Australia and different other countries. The different types of unemployment which are seen in the countries are: cyclical, classical, structural, long term, hidden, frictional, seasonal, etc. The Australian government had thus come across the seasonal unemployment, structural unemployment and cyclical. The structural unemployment takes place when the labour market is unable to provide job to each and every individual seeking for the work. A mismatch exists amid the skills of the unemployed individual and the skills required for the available job vacancies. It is been considered to be the long lasting form of unemployment which is been caused by the fundamental shifts in the economy and is been affected by different factors such as competition, technology and governmental policyanalysis . The seasonal unemployment is basically a short period unemployment being caused due to the seasonal variation in the demands and supply of the labour force along with the goods and services in the economy. Moreover, the cyclical unemployment takes place when there is less adequate amount of cumulative demand in the economy in order to provide required jobs to the one who are willing to work (Hobson, 2013). The cyclical unemployment is been considered as the factor of the unemployment which is been related to the cyclical trends in the production and growth parameters which takes place in the business cycle particularly.
\As per Katz, (2014) when the business cycles are at the highest peak, the cyclical unemployment would be lower as the total output of the economy is maximized. Whereas, when the output declines, as measured through GDP then the business cycle is lower and thus the unemployment is increased.
In context to the Australian economy, the cyclical unemployment is been caused due to the large drop off in demands. It is generally initiated with the lower personal consumptions. When the demands of goods and services among the customer’s declines, the business revenue would also decline and ultimately the organization would have to lay off the labour force to maintain its profits margins to the desired levels. Thus, it largely leads to the unemployment in the economies. It has been identified that these unemployment had resulted in large number of issues in the country and had influenced the common public as well as the entire economy. It has been even found that the long term unemployment had damaged the wellbeing of Australia to the great extent.
The long term unemployment had been increasing with the increased rate since many years and had been influencing the common people and their living extensively. An individual facing unemployment for longer period of time is unable to feed his/her family and are unable to even find their basic food, shelter and clothing which had made the government of Australia more concerned. It has been observed that the increase in the unemployment is been considered as one of the biggest economic and social challenges being faced by many of the economies (Milner.et.al, 2013). It mainly affects the young generation along with the growing number of people who are kept out of the labour market for more than two years. It has created immense issues for the country as well as the population.
The unemployment in Australia had led to many of the issues such as financial impact, psychological impacts, social impacts, health consequences, etc. However, it has become very much important for the Australian government to take effective actions against the crucial issue which have been impacting its economic liberty to the large extent. It has been even found that the issue of unemployment had made remarkable impacts over the country. As per Mavromaras.et.al (2013) the unemployment had caused higher levels of humanity and had affected both the mental and mental ill health at the whole. The unemployment had usually impacted the socio economical condition and the people to the large. With the decrease in the income levels there has been a drastic decline in the purchase levels and the other living. People from lower or middle classes are suffering through a critical phase and struggling to live their daily livelihood which must be focused by the government.
It has been found that the government of Australia had initiated with some of the basic policies for the unemployment specifically with the purpose to diminish the impact over the economy. The policies are been framed with the purpose to maintain the balance in employment and diminish the rate of unemployment for the betterment of society and the economic conditions specifically. The framework of policy creation had assisted in creating a situation where the unemployment had been reduced steadily and sustainably. It has been found that with the implementation of the policies, the labour market of Australia had become much flexible so that to provide uniform opportunities to the people (Mitchell, 2013). There are various policies being levied by the Australian government to reduce the unemployment such as monitory policy, general economic policies, fiscal policies, etc. so that to facilitate the economic condition with effective measures of improvement. It has been also found that the government had made various other initiatives towards the society like providing adequate education and training to assist in the reduction of structural unemployment. It has also provided with the geographical subsidies in order to help the enterprises to invest in the downward areas. The government has even made the labour market much flexible so that to facilitate the employers to easily hire and fire the employees and sustain a minimal number of unemployment. The initiation of lower minimum wage had also contributed in the reduction of the real wage unemployment and had helped the government in achieving the desired goals.
In addition to this, it has also been seen that a large number of population rejects the jobs and continues collecting the welfare benefits of the unemployed. Thus, reducing the benefits and making specific restriction to the welfare would also help in reducing the unemployment in the country. It has been identified that the government of Australia had implemented the monitory policy with the intention to influence the interest rates which would affect the levels of unemployment. However, the monetary policy of Australia had affected the interest rates by the reserve bank and is monitored by the monetary supply of Australia which helps in achieving the goals specifically like external stability and sustainable economic growth. As per the opinion of Master, (2016) the government of Australia had been working with the G20 partners in order to lead the international actions on the issues of unemployment and had executed the policies which aims to enhance the growth of potentiality in Australia. It also created an economic environment in which nearly about 2 million jobs are projected to be generated in the coming next 10 years. Moreover, it has been identified that private sector had played an important role in driving growth in the employment sector. The economic strategy of government is mainly concerned with the improvement in the business opportunities along with the strengthening of the capabilities of businesses to compete globally. With the expansion of the business, there would be an increase in the employment opportunities as well and thus would help in reducing the unemployment rate in Australia.
The Australian government had also provided priorities to the fiscal consolidations at the measured pace, readdressing the government expenditures in the quality infrastructural investments along with the implementation of reforms which enhanced the innovation in the jobs and motivated the people to move towards the jobs. In addition to this, the Australian government had also initiated in the reduction of tax and regulation on the business which made them expand their operation and opened new avenues for the people seeking jobs. The government had even initiated with the enhancement in the operation in the workplace laws by reforming the regulations and making the business grow.
Kramer, (2014) stated that the government of Australia had planned to stiffen the rules for the unemployment benefits as who is actually liable to have the unemployment benefits so that to motivate the jobless people having excuses to stay off the job and avail the benefits from the government. Unemployment had proved to be serious issues for the economy and made the government to focus on the same. However, by implying various policies and making effective initiatives the government of Australia had been facilitated in reducing the unemployment to the great extent and attains a growth in its economic conditions as well. It has been found that the development of effective policies had helped the government in creating a situation where the unemployment had been reduced progressively and sustainably. It has been even found that with the implementation of the policies, the labour market of Australia had become much flexible so that to provide uniform opportunities to the people.
The policies being levied by the Australian government to reduce the unemployment such as monitory policy, general economic policies, fiscal policies, etc. had facilitated the economic condition with effective measures of improvement. Even it has been recognized that the other regions of Australia such as Tasmania, SA, NSW, Qld and WA had also levied various policies with the purpose to reduce unemployment and raise the economic standards of the country. These regions had implied low minimum wage policy to reduce the unemployment and make people acquire the opportunities to work. Even many of the unemployed people had been facilitated with effective benefits to encourage the people and make them work for a better living. The authorities had even offered an amount of approximately $501.00 per fortnight as an allowance for a new start to an individual with the purpose to motivate them to move towards the employment (Clarence and Heikkilä, 2013).
In addition to this, the policies such as work place training, apprenticeship schemes, government subsidies, benefits and tax reforms, etc. had been made in order to decrease the levels of unemployment and contribute in the growth and development of the economic condition of the country and provide the population with better living. The initiatives had even helped the people improve their skills and knowledge with the help of governmental subsidies or training development program and meet the requirement of the job vacancies to the higher extent. Additionally, it has been even found that initiatives made by the government towards the society like providing adequate education and training to assist in the reduction of structural unemployment had proved to be much effective and profitable to the local public. With the decrease in the unemployment, the Australian economy would be highly benefited in acquiring greater expansion and sustainable living standards to the people.
With the above assessment it could be concluded that a large number of population had faced the issues of unemployment which highly somehow affected the economic conditions of the country as well. The assessment had revealed that unemployment is the situation in which an individual of working age is willing to work in be in full time employment but is unable of getting any job. The rate of unemployment is been signified as the percentage of the overall workforce which is not been employed anywhere and is searching for the suitable work or to be employed. It has been identified that the Australian economy had experienced a rise in the unemployment rate to the highest peak currently. Even it has been seen that the employment rate had affected the Australian economy to the great extents as it reduced the income levels of the people and the value in the economy. Furthermore, it has been observed that the unemployment had largely affected the young generation along with the growing number of people who are kept out of the labour market for more than two years. It has created immense number of issues for the country as well as the population. Thus, with the decrease in the unemployment, the Australian economy would be highly benefited in acquiring greater expansion and sustainable living standards to the people.
- Argy, V.E. and Nevile, J. eds., 2016. Inflation and Unemployment: Theory, Experience and Policy Making. Routledge.
- Clarence, E. and Heikkilä, S., 2013. Successful methods for getting the long-term unemployed into work: a short overview.
- Feather, N.T., 2012. The psychological impact of unemployment. Springer Science & Business Media.
- Hobson, J.A., 2013. The Economics of Unemployment (Routledge Revivals). Routledge.
- Katz, L., 2014. Long-term unemployment in the Great Recession.Members-only Library.
- Kramer, T., 2014. Factors affecting monetary policy in Australia. Ecodate,28(2), p.2.