Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Australia economic conditions
Australia economic conditions
Australia economic conditions
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Australia economic conditions
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...
... middle of paper ...
...(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.
First, class has determined inequality in labor market, because labor market is directly linked with the main source of income for most people, which provides everyday purchase on food, clothing, transport and housing. In Australian labor market, a large number people are employed in middle working class, for example sales, clerical or service job. However, there are a few people working in the top occupations, such...
"Macroeconomics/Employment and Unemployment." Macroeconomics/Employment and Unemployment - Wikibooks, Open Books for an Open World. N.p., n.d. Web. 04 July 2017.
In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.
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.
Changes in unemployment in Australia is a key issue in this news article. In the last twelve months, unemployment in Australia has dropped from 5.6 per cent to 5.1 per cent which is described as ‘a puzzle’ in the news article. Looking closer, there are some possible explanations for this change in statistics. Previously, unemployment in Australia increased in the time of the recent global economic downturn, although didn’t suffer as poorly as other countries according to data from the Organisation for Economic Co-Operation and Development. However, while unemployment rose, so too did the number of people in other forms of underemployment such as part-time and casual work (OECD, 2010). According to Sappey et. al., the status of employment requires workers to only work one hour per week and so therefore many underemployed workers receive the same employed status in this data as full-time workers (Sappey et. al., 2010, p. 111). According to the OECD, under-employment increased significantly during the downturn, rather than unemployment. Unemployment has dropped in the last twelve months but that does not mean that those who have obtained work have gained full-time employment. In fact, according to the Australia labour market trends of the last twelve months, it is more than likely that those who have become an ‘employed’ statistic rather than ‘unemployed’ have not gained full-time work. This news article quotes figures fro...
What caused the Great Recession that lasted from December 2007 to June 2009 in the United States? The United States a country with abundance of resources from jobs, education, money and power went from one day of economic balance to the next suffering major dimensions crisis. According to the Economic Policy Institute, it all began in 2007 from the credit crisis, which resulted in an 8 trillion dollar housing bubble (n.d.). This said by Economist analysts to attributed to the collapse in the United States. Even today, strong debates continue over major issues caused by the Great Recession in part over the accommodative federal monetary and fiscal policy (Economic Policy Institute, 2013). The Great Recession of 2007 – 2009 enlarges the longest financial crisis since the Great Depression of 1929 – 1932 that damaged the economy.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
It is the role of every government to safeguard its people in all matters including controlling the economy. Every economy faces different challenges including the business cycles that may emanate from the global market. In this paper we try to examine measures taken by the UK’s coalition government in trying to ensure that the economy benefits every citizen and reduces the overall burden to it. We consider the recent comprehensive review on spending.
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.
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.
Analysis of the labor market in the economy reveals a reduction in vacancies while the number of job seekers significantly increases over the past few decades (Dickerson, 2008, p.1). Particularly, the youth employment looks worrying with a serious downward trend with so many of them unemployed. The numbers of free people who are full educated or trained have also decreased. The unemployed in the economy are either inactive or unemployed. The annual changes continue to show a rise in unemployment of young people both for student and others. With lack of government employment as well as training programs, many individuals opt to seek for self-employment (Dickerson, 2008, p.1). Statistic continues to show that there has been an increase of workless people in comparison to the vacancies available. The general picture, therefore, remains that labor market constantly fails to meet the needs of people regarding employment. Although this is the case, there has been some variation across regions with Scotland and Wales in the UK showing decreased performance. There remains a risk that employment will increase in the coming years. The present concern is long-term unemployment, specifically with regards to the youths who are most disadvantaged in the labor market (Dickerson, 2008, p.1).
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
When I took the scores of macroeconomics I thought I was going to get the same old spiel of how the economy works. Little did I know I will discuss economics and going to Depth and he and other economical situations will be brought up in resolved
Unemployment issue can lead to a lot of impacts to the economic growth. Higher unemployment rate will lead to increase government borrowing. When people are without their job, they would paid less in the income tax. So, it will cause a drop in tax revenue because there are lesser people paying income tax and spending less. Due to the loss of earnings to the unemployed, the government need to spend more subsidy for them in housing benefits and income support.