Potential Solutions For High Youth Unemployment

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Question How can the high levels of What are potential solutions for high youth unemployment in Australia be solved, and what are its implications on inequality for young Australians? I. Introduction High levels of unemployment have many negative effects, including rising inequality, which is a major issue in developed economies such as Australia (REF). Income, and wealth inequality are the two main types of inequality examined in economics. Income Distribution Income distribution refers to how the total income of a nation is distributed between the population. An economy with high income inequality will have the majority of the income distributed to a minority of the population (REF). Income distribution can be graphically illustrated …show more content…

Economies attempt to maintain unemployment as low as economically sustainable (referred to as the natural rate of unemployment), because high unemployment creates several issues in an economy (REF). Both unemployment and underemployment are heavily linked to high levels of inequality, as such young Australians are more likely to experience inequality (REF). The focus of this inquiry will be on inequality and unemployment in young Australians. II. Issues High unemployment (and underemployment) have several costs on Australian society. One of the key impacts of high unemployment are the heightened levels of inequality (REF). As young Australians experience higher unemployment (and underemployment) than the average Australian, they also experience significantly higher levels of inequality (REF). Economy High levels of youth unemployment (and underemployment), leads to the economy functioning inefficiently (functioning below the Production Possibility Frontier [PPF]) (REF). Furthermore, a high rate of unemployment means that young Australians lack the appropriate skills required in the workforce, thus more time and money is required from the employer to train the young Australians to be able to participate in the workplace (REF). High levels of youth unemployment result in individuals possessing lower disposable incomes, consequently there is lower aggregate demand. As demand for labour is derived demand, the high levels of youth unemployment will result

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