Essay on Unemployment And Jobs Growth : Unemployment
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 2014.
Trends in the level of employment and unemployment:- Figure 2: Changes in Australia’s unemployment rate, 1992-93 and 2014 (Richard Morris, Economics Down under)
Australia unemployment rate forecast:
Figure 3: Australia unemployment rate forecast (Trading Economics, 2015)
Based on the forecasted data, unemployment rate in Australia might reach up to 6.5% by the end of this year. In the long term it may project up to 6.5 and 6.8 in 2020 and 2030 respectively.
Jobs growth: Figure 4: Projected employment growth by industry (Industry Employment projections Report, 2015)
Jobs growth is forecasted to grow in 17 broad industries over the four years to 2019 with only exception of mining and manufacturing industry.