Unemployment and jobs growth:
As we can see from the graph below that following the end of the recession in 1991-1992 the percentage of labor force unemployed was considerably high. After that from 1993 till 2008 the labor market condition had mostly strengthened. The percentage of labor force unemployed has significantly dropped from 11 to 4.2. Around 6 million new jobs were created. However, due to the global recession and financial crisis, since 2009, the labor market condition has started weakening with monthly unemployment rising to a high of 5.8 %. Consequently, job vacancies, worked hours, participation rates have declined substantially. In March 2012 monthly unemployment declined to 4.9%. However, it has risen again to 6% in February …show more content…
Whereas, employment in mining and manufacturing has projected to fall by 40700 and 26100 respectively.
Effects of changes of employment and unemployment level:
Unemployment is occasionally good for neutralizing extreme spending and inflation. Unemployed people get some opportunity or extra time to enhance their skill and get involved in voluntary unpaid work. However, it appears unpleasant as it has reverse consequence on individuals and economy of the government as a whole.
Effect on individuals:
Lifestyle changes drastically due to reduced income. As a result living standards fall, repayment of loans and interest become harder. In addition, previous savings quickly used up and all assets cashed up. Poverty and social imbalance rise.
Non material living standard also gets affected. Unemployment gives rise to family tensions, stress, violence, crime and vandalism. Self-esteem drops down as a result of knock backs, loss of status, low wages. Job seeker lose hope, individuals lose work …show more content…
On the other hand, government expenditure grows on welfare benefits, jobs creation, and provision of health, law and order, labor market training and so on.
Impact of Government policies:
For gaining full employment and restrain unemployment to a low 5% of total labor, Australian government uses several macroeconomic and aggregate supply policies involving macroeconomic efficiency reforms and other measures in order to create an ideal situation for most individuals.
Aggregate Demand policy:
1. Expansionary monetary policy:
Monetary policy is conduct by Reserve Bank of Australia which includes provided on saving deposits and charged on borrowed credit. It is their primary responsibility to stabilize price, sustain full employment, economic prosperity. They have an inflation target of 2-3% on average over the cycle. They can lower the interest rate which makes borrowing and spending of credits cheaper. Consequently, aggregate demand, house hold consumption and business investment rise. Therefore, net effect of lower saving and enhanced spending give rise to the level of production and
As we can see from the graph below that following the end of the recession in 1991-1992 the percentage of labor force unemployed was considerably high. After that from 1993 till 2008 the labor market condition had mostly strengthened. The percentage of labor force unemployed has significantly dropped from 11 to 4.2. Around 6 million new jobs were created. However, due to the global recession and financial crisis, since 2009, the labor market condition has started weakening with monthly unemployment rising to a high of 5.8 %. Consequently, job vacancies, worked hours, participation rates have declined substantially. In March 2012 monthly unemployment declined to 4.9%. However, it has risen again to 6% in February …show more content…
Whereas, employment in mining and manufacturing has projected to fall by 40700 and 26100 respectively.
Effects of changes of employment and unemployment level:
Unemployment is occasionally good for neutralizing extreme spending and inflation. Unemployed people get some opportunity or extra time to enhance their skill and get involved in voluntary unpaid work. However, it appears unpleasant as it has reverse consequence on individuals and economy of the government as a whole.
Effect on individuals:
Lifestyle changes drastically due to reduced income. As a result living standards fall, repayment of loans and interest become harder. In addition, previous savings quickly used up and all assets cashed up. Poverty and social imbalance rise.
Non material living standard also gets affected. Unemployment gives rise to family tensions, stress, violence, crime and vandalism. Self-esteem drops down as a result of knock backs, loss of status, low wages. Job seeker lose hope, individuals lose work …show more content…
On the other hand, government expenditure grows on welfare benefits, jobs creation, and provision of health, law and order, labor market training and so on.
Impact of Government policies:
For gaining full employment and restrain unemployment to a low 5% of total labor, Australian government uses several macroeconomic and aggregate supply policies involving macroeconomic efficiency reforms and other measures in order to create an ideal situation for most individuals.
Aggregate Demand policy:
1. Expansionary monetary policy:
Monetary policy is conduct by Reserve Bank of Australia which includes provided on saving deposits and charged on borrowed credit. It is their primary responsibility to stabilize price, sustain full employment, economic prosperity. They have an inflation target of 2-3% on average over the cycle. They can lower the interest rate which makes borrowing and spending of credits cheaper. Consequently, aggregate demand, house hold consumption and business investment rise. Therefore, net effect of lower saving and enhanced spending give rise to the level of production and