Economics for Business Tri1 2016-Unemployment
Table of Contents:
Table of Contents: 2
Introduction: 3
What is Unemployment Rate? 3
What are the types of unemployment? (600) 6
Cyclical unemployment 6
Classical unemployment 7
Frictional unemployment 7
Seasonal unemployment 7
Structural unemployment 7
Why is unemployment a major macroeconomic issue? 8
Government Policy of Australia towards unemployment: 10
Unemployment in various states of Australia: 11
Conclusion 12
References: 14
Introduction:
Unemployment is one of the main issues that indicate the development of an economy and when there is an increase in unemployment, the economy is said to be heading for an recession or depression. In the Australian economy, there has been an increase in unemployment from 4.5% in 2008 to nearly 6% over the last few years and this has been due to the shift in the orientation of development from the mining sector to services sector and other sectors like tourism and construction (Scutt, 2016).
In this paper, we are discussing the term unemployment and its difference from labour participation rate; the various types of unemployment in an economy, what is the macroeconomic problem of unemployment in an economy and how structural unemployment becomes a problem both for individuals and for the society as a whole. We also discuss the governmental policies towards reducing the unemployment rate in the Australian economy and the differences in the rates of unemployment in various states of Australia. The various types of unemployment in an economy includes cyclical unemployment, frictional unemployment, seasonal unemployment and structural unemployment. Here taken this issue of unemployment in this paper, we try to analyse why the rate of unemployment is high in the Australian economy from the period of global financial crisis and why there are regional differences among the various states in Australian when we compare the rates of unemployment in these states.
(I.C. JPS 1568)