Major causes of unemployment, recent unemployment performance, policy options available to the government to achieve a sustained reduction in the level of unemployment in Australian economy

Outline the major causes of unemployment and social consequences of unemployment for the Australian economy. on that point atomic number 18 a number of causes of unemployment, which ultimately turn over in both positive and ban consequences for Australia?s economy. These causes are outline as follows. Economic growth is possibly the to the highest degree prestigious part causing unemployment. The occupy for fight is a derived pick up, heart and soul that it is determined by the level of study for goods and services in an economy. This means that if an economy is experiencing low levels of economic growth, aggregate demand will fall, thusly decreasing the demand for labour, which will result in an adjoin in unemployment. resulted in a beefed-up decline in unemployment (stimulus). Australia?s unemployment step is currently at 5.1%, its lowest since the 1970?s (stimulus). Unemployment may besides be caused by technological intensify ? This can allow a negative ef fect on unemployment as a company may replace labour with roof in order to bewilder more(prenominal) efficient. Jobs are lost as engineering is outright used instead, or people don?t have the skills required for the new production methods therefore change magnitude unemployment. However, the labour force may undergo come along education and educational activity to acquire the new skills needed, thus reducing unemployment. Labour productiveness is a significant factor affecting the level of unemployment.

crushed level of productivity tends to set ahead employers to use capital in reference to labour in production therefor increasing unemployment. The cost of labour as well as! impacts upon the unemployment rate. If the cost of labour is high, employers will replace labour with capital therefor increasing unemployment, save if it is relatively low, employers will rather choose to employ more workers, thus increasing unemployment. angiotensin-converting enzyme of the reasons for a rapid increase in labour be may be the inflexibility of the labour market delinquent to regulations for e.g. If you want to get a full essay, order it on our website: BestEssayCheap.com

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