Unemployment Rate In Australia

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Unemployment refers to a situation where individuals want to work but are unable to find a job, and as a result, labour resources in an economy are not utilised. In March 2016, the unemployment rate within the Australian labour force was 5.6%, however, it slightly increased a year later to 5.8%. Various factors contribute to the unemployment rate’s increase, such as the cyclically weak demand for labour, resulting slow employment growth compared to labour supply. As well as structural influences that affect the efficiency which unemployed workers are matched to vacant jobs. Therefore, the unemployment trends will affect individuals, firms, government and the Australian economy.

The mining boom and the Global Financial Crisis were significant …show more content…

Youth groups (aged 15-24) have experienced the highest rate of unemployment (13.5%) in the last four decades due to the global financial crisis. Rates increase from 12.2% in January to 13% in July, caused by the lack of qualifications and mismatch of skills. Unemployment rates for Indigenous (Aboriginals and Torres Strait Islander) are higher than those of non-Indigenous. For instance, the rate for unemployed Indigenous aged over 55 is 6.2% caused by poor health, discrimination, lack of education and work experience which limit their understanding and participation in the workforce, while non-Indigenous is 3%. The unemployment rate for migrants is 7%, compared with 5% for Australian-born. The ABS has revealed that the Middle Eastern migrants are struggling the most to seek an occupation, with an alarming rate of 17.5% compared to Asian migrants with a 3.6% unemployment rate and 1.9% from Europe. Those who face difficulties said that “64% is due to the lack of Australian work experience, 33% is language difficulties, 15% due to the lack of knowledge and skills. (ABS, 2011). Overall, it is definitely clear that Australia’s state of unemployment is steadily high and below the standard expectation despite undergoing a great recovering from the mining boom and the

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