How Is Unemployment Measured?

Australia has been able to lower its unemployment rate in recent five years. The study explains the unemployment rate in Australia, reasons of unemployment, existence of youth unemployment, scenario of west and south Australian

Australia’s economic status can be assessed using a range of economic indicators such as unemployment rates, Gross Domestic Product (GDP), inflation rates and interest rates. The economy can affect Australian business’s greatly causing them to flow through the business cycle. The business cycle purpose is to describe the overall trends of the economy and can show growths of high or negative. The four stages in a business cycle are: expansion, this is when the economy has high demands; peak, this is the turning point of the expansions before the economy falls down. A contraction is when the demand for goods and services are low; and trough, is the opposite of a peak. To evaluate Australia’s current economic status factors such as unemployment

This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade.

An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.

Unemployment is currently measured in the United States by counting those who "do not have a job, have actively looked for work in the prior four weeks, and are currently available for work" (Leonhardt). This means that a great deal of people are not counted as unemployed because they are discouraged and have not looked for work in the past four weeks. Or, the person was injured in some way and they are "not currently" available for work. This does not mean that the people in either of these groups do not actually wish to find work, but it does mean that they are not counted because of an archaic system that has been used by

The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.

Employment in Australia is on the rise with most people who are willing and able to work now having the opportunity to do so. Economists consider 5% unemployment which was the value in January recorded by the Australian Bureau of Statistics. Greater number of jobs created because of factors such as the mining boom and the recovery effect in Queensland because of the floods will further lower the unemployment rate. This will have the effect of consumers having more disposable income thus requiring an increase in long term interest rates.

The demand and supply of workers in Australia is affected by government initiatives which are as follows:

In comparison to Australia, India’s unemployment rate is 3.46% (2016). Unemployment is a social issue in India. India is focused more on primary, secondary sectors which is different compare to Australia due to difference of

Unemployment refers to the numbers of people not working and can be measured by the claimant count and labour force survey. There are different types of unemployment and each of them requires different policies to overcome them.

The article ‘ Strong jobs figures put rate cut in doubt’ described that there is an increase in employment in the last one month which might help in putting hold to rate cut by Reserve Bank of Australia. There are positive signs in Australian job market with increase in 44000 employed people showing signs of recovery and better production levels. This will also increase private consumption giving rise to increased demand.

The unemployment of BHP Billiton workers may result in the unemployment rates of South Australia to raise up to 9% in the next six months

The second macroeconomics variables we choose is unemployment rate. Based on the materials shown above, among 2004 to 2008 years, the unemployment rate decrease which means the many people get the job during these years. Unemployment rate can be resulted when the employees leave their job to find a better one. Another reason causes the unemployment is the unemployed persons lack the skills or experience to obtain a job. Moreover, the youth who just graduated need longer time for seeking a suitable job that fits their new skills and qualifications. These show the in short-period of unemployment situation. Among these years, the local economy in good condition which had founded many companies such as utilities companies, financials companies, industrials that create many job opportunities. The foreign direct investment increase also creates the job opportunities in Australia. The high level of Australia exports of goods and services within these years results the good economy condition in Australia, the unemployment rate decline each year.

The duration of unemployment as provided by the Bureau of Labor Statistics was an average of 28.1 weeks in June. The trend seem to be improving overall because the average duration of unemployment for May was 30.7 weeks, and a year ago it was 31.4 weeks (BLS 2015). The difficulty of finding a job seems to go up after the first month after being unemployed. The people who are unemployed for 15 to 26 weeks have the least trouble finding jobs (BLS 2015). After 27 weeks, more people have difficulty finding jobs (BLS 2015). A possible explanation is that unemployed people look like worse candidates the longer they are unemployed, so they have a harder time to find work as time goes on. Initially, people may also be discouraged from being laid

In the past quarter the unemployment rate in South Australia has remained steady at 5.6% (Australian Bureau of Statistics, 2009) but this figure is volatile and may increase next month. The youth unemployment rate, however, in South Australia remains at 21.9% with the Western and Northern suburbs having significantly higher