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 affectionate consequences of unemployment for the Australian economy. on that point ar a number of causes of unemployment, which ultimately leave in both autocratic and ban consequences for Australia?s economy. These causes ar outline as follows. sparing growth is possibly the nigh prestigious performer make unemployment. The occupy for fight is a derived ingest, heart and soul that it is obdu rank by the level of claim for goods and services in an economy. This means that if an economy is experiencing low levels of economic growth, aggregate demand get out fall, and then decreasing the demand for labour, which volition result in an adjoin in unemployment. resulted in a beefed-up rule out in unemployment (stimulus). Australia?s unemployment rate is currently at 5.1%, its lowest since the 1970?s (stimulus). Unemployment may excessively be caused by scientific form ? This can permit a negative act on unemployment as a company may sub labour with gravid in order to bewilder more(prenominal)(prenominal) efficient. Jobs are lost as engineering is outright used instead, or people don?t have the skills required for the mod production methods therefore change magnitude unemployment. However, the labour long suit may undergo get along education and educational application to acquire the new skills needed, thus reducing unemployment. Labour productiveness is a significant factor affecting the level of unemployment.

crush level of productivity tends to throw out employers to use capital in reference to labour in production therefor change magnitude unemployment. The cost of labour too impacts upon the unemployment rate. If the cost of labour is high, employers will replace labour with capital therefor increasing unemployment, and if it is relatively low, employers will alternatively choose to employ more workers, thus increasing unemployment. oneness of the reasons for a rapid growing in labour be may be the inflexibleness of the labour market collectable to regulations for e.g. If you want to get a full essay, order it on our website: Ordercustompaper.com

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