Macroeconomics Of Unemployment Research Paper

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.

Analyse the causes of unemployment, its effects on the Australian economy and how they are addressed through use of macroeconomic policies.

In any economy, no matter whether it is controlled by the government or by free markets, people need to work in order to support it. The government does not generate tax revenue by magic. There have to be people in that economy earning an income to ensure that the government continues to collect taxes. In a free market economy, the same applies because there are some services which only an organized government can supply (such as protection from extra-national threats), but there also those which the people get for themselves because of the working of the markets. In any scenario, unemployment is, at the very least, a drag on the economy, and it can be much worse. This paper examines how the unemployment rate in the United States is underreported, and how that fact effects the sluggishness of the present economy.

By 2016, Australia assess that mining had raised genuine per capital household extra income by 13%, raised genuine wages by 6% and brought down the unemployment rate by around 1¼ rate focuses. There have additionally been cost. The mining has prompted a huge valuation for the Australian dollar that has weighed on different enterprises presented to exchange, for example, assembling and farming.

Started from late 1800s, Australian mining boom is an inevitable part of modern Australian history. From gold and copper to iron and gas, the several terms of mining boom made great contribution to Australian community and economy including providing source of employment, attracting immigrants and stimulating international trading. The mining boom is considered to be a shock to the Australian economy.“This combination of shocks has boosted the purchasing power and volume of Australian output. It has also led to large changes in relative prices, most noticeably an appreciation of the exchange

Mining generated from 3.4 percent of Australia's Gross Domestic Product in 1982-83 to 4.6 percent in 2002-03. The mining sector has created the Australian economic growth, especially in terms of exports. Lewis (2000 ,2) states that the industry makes up around 40 percent of Australia's merchandise exports each year, contributing around 40 billion dollar annually to the economy. The value of exports from the mining industry has grown by 95 percent during 1994-2004, 45 percent more than the growth in manufacturing industry and 26 percent more than for all industries. Australia globally exports mineral commodities to many countries, for instance, Japan, Republic of (South) Korea and United Kingdom. Japan is the major buyer with approximatly more than 20 percent of the total export value in minerals each year. "Of the countries in this region, Japan is consistently the main destination for Australian minerals and oil for the period 1988-89 to 2002-03. Its share of total exports of minerals and oil was 27% in 2002-03." (2005 Australia Year Book 2005, 509). These developments can be seen that mining industry is important to the Australian economy.

The unemployment rate has decreased a significant amount. A main cause of this is the government working hard to reduce taxes and regulatory burdens within businesses. The government is also working on improving working conditions. Eric Abetz, the Australian Minister for Employment stated that Australia is, “recognizing that it is businesses which create jobs, not government” (Abetz,14). This shows that the government is focusing on the businesses themselves rather than creating new jobs. With the businesses having success, this will lead to creating more jobs for those unemployed. Australia is encouraging everyone in the country to participate in the labor force as they do everything they can to improve it. In January of 2016, Australia’s unemployment rate was just at 6.4%, and since then it has not hit that high number again. Over the past three years the unemployment rate has taken a full turn around. As of July 2017, it is now at about 5.5%.( Figure 2*) Middle Eastern migrants take up most of the unemployment percentage, they find it very difficult to find jobs in Australia. They have a 33% jobless rate within their five years of living in the country. The unemployment rate for them is around 17.5 %, this is compared to the 3.6% for southeastern Asians and 1.9% for

This paper is about how the high unemployment rate has an affect on the economy. The high unemployment rate had an affect on the Gross Domestic Production as well how it had an affect on the economy as well. This paper covers when the Gross Domestic Production went up the unemployment rate had gone down as well. The high unemployment rate also had direct ties to the economy, because if people are not working they are not going to spend money on house hold goods which is what drives the economy.

In the past two decades, the Australian economy has been, and continues to be a very strong and steady economy because of steady GDP growth rates, with an average around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. Because of these macroeconomic values, Australia is ranked third in the ranking of regional economies (Heritage.org). The reasons for Australia’s ongoing success is mainly because of the boom in foreign demand of importing the plethora of natural resources and minerals the country contains, combined with the structural economic policies enacted in the 1980’s (The Economist - Australia’s Economy). Australia is also one of the few countries

Written by Paul Krugman and Robin Wells, Macroeconomics states, “In general, the unemployment rate is a good indicator of how easy or difficult it is to find a job given the current state of the economy” (Krugman and Wells 219). A New York Times article, Strong Unemployment News Bolsters Case for Fed to Raise Rates written by Reuters, talks about how unemployment rate benefits are holding steady with a steady labor market and how job openings are rising, which is encouraging the Federal Reserve to higher interest rates. As explained in Macroeconomics, by Krugman and Wells interest rates refer to, “The price, calculated as a percentage of the amount borrowed , that lenders charge borrowers the use of their savings for one year” (Krugman

the GDP growth of Australia indicates an overall downward trend from 2012 to 2015, which from about 4% in 2012 to approximate 2% in 2015. The main reason may be the decline of global commodity prices so business spending and export earnings stagnate. Specifically, the importance of iron ore to the Australian economy is self-evident.

This study examines the impact of unemployment rates to a developed economies growth rate. This paper will be built off of the most distinguished idea addressing the relation of economic growth and unemployment, Okun’s Law . Okun’s Law that assesses the relation between unemployment and economic growth is one of linearity . Okun’s Law is the idea that there is a natural level of unemployment and when the level of unemployment is above the natural rate, economic growth suffers.

Ever since 2008 global financial crisis, the whole world has been facing endless economic problems. People began to lose their purchasing power because of the rising inflation and high unemployment rate. Most of the people thought the economics of Australia would be catastrophic like the United States and other major European countries. However, some studies pointed out it did not happen. The reverse consequences have occurred, as the table showed the comparison with the other European countries, Australia’s economic status has been improved (Brain, 2010). Brain 's study also mentioned Australian economy could face a stand-alone crisis within the next 5 years, like foreign debt default. The TCF industries in Australia could bring more opportunities for the investors even after the financial crisis.

Money is essential to any individual looking to have a decent lifestyle; labor is the avenue through which this is acquired. The economy goes through various fluctuations in activity causing unemployment to fall, rise, or level out. What this creates is the first type of unemployment, known as cyclical; frictional is the second type, caused by a temporary leave (for whatever reason) by the employee, and structural is the third type, varying with the economic changes in demand. The absence of unemployment at its maximum level is termed full employment, another version of unemployment. The term encompassing the sum of the frictional, structural, and, yet another type of unemployment, surplus unemployment is that of the natural rate of