Unemployment And Its Effects On The Economy

1452 WordsJun 25, 20156 Pages
Unemployment occurs when a person who is actively seeking employment but unable to find work. It is often used as measure of the health of the economy and has been one of Australia’s most serious long term economic challenges in recent decades. Economic growth is an ongoing process of increase in the production capacity of goods and services over a period of time. This determines economic wealth and individual living standards. These two economic issues have been a continuous matter within Australia, however the government has been actively addressing it with several policies which are varying in effectiveness. Unemployment has been one of the most persistent of all economic issues, leading to rising debates from economists over the causes of it and policies which should be used to address the matter. Australia’s unemployment rate has continued to be volatile with fluctuations every few years due to several mishaps however, has remained relatively stable for a decade. According to the unemployment rate reported by the Australian Bureau of Statistic, from 1978 to 2015 Australia is averaged to be 6.9 percent, with record high 10.9 percent in 1992 and an all-time low of 4 percent in 2008. During the early 1990s, Australia underwent the effects of the global recession causing a significant upsurge in unemployment rates, its highest level since the Great Depression of the 1930s. The falling aggregate demand, caused by this mishap, prompted cutbacks in production and the
Open Document