Unemployment - Australia

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Unemployment Unemployment refers to those people who are willing and able to work, actively seeking work but is unable to find suitable employment. In Australia unemployment is measured by a monthly telephone survey of the labour force conducted by the Australian Bureau of Statistics (ABS). These unemployment statistics reflect the number of people who are not working but actively seeking it. To be classified as actively seeking work the following criteria must be followed: regularly checking ads from different sources of available jobs; being willing to respond to job ads, apply for jobs with employers and attend interviews; registering with an Unemployment agency that belongs to the Job Network. The size of the labour force in 2008-09…show more content…
For instance, the GFC (2008) saw a fall in aggregate spending and economic activity. (DIAGRAM?) Structural changes in consumption and production can cause the level of structural unemployment to rise. E.g. introductions of labour saving technology would see an increase in unemployment. The role of wage expectations is a further factor that may cause unemployment, as it pushes up the price of labour relative to capital. Rapid roses in real wage costs will reduce demand for labour, and provide employers with the incentive to replace labour with capital. A lack of efficiency in matching labour skills with available jobs can cause frictional unemployment. Rigidities in the labour market like government regulations (workers’ compensation, unfair dismissal legislation, award system) can also reduce the hiring intentions of employers. If the worker does not have access to education and training, it further results in unemployment due to lack of skill. Full employment is a situation where the quantity if labour demanded equals the quantity of labour supplied. The unemployment rate at full employment is called the natural rate of unemployment; this rate fluctuates due to changes in level of frictional and structural unemployment in the labour market. The natural rate of unemployment is also referred to as the Non-Accelerating Inflation Rate of Unemployment (NAIRU)
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