Unemployment can be stated as “Whether the problem

Unemployment in Australia


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            The word unemployment as explained by The International Labour Organization (ILO) states that unemployed people are those who do not have any work to do or at present are available for work and intentionally searching for a job in the market (Carvalho, 2015). The Problem of unemployment is getting more attention in Austrailia due to high variations in the rate of unemployment in a very frequent and random manner. In this regard, the following essay is primarily aimed at studying the state of unemployment prevailing in Australia mainly among the youth of Australia who can be classified as unemployed people between the ages of 15 to 24 years. In order to achieve this aim of the essay, the current situation in the country regarding the issue is studied in detail and discussed. Further, the analysis of the current and previous statistics is discussed to identify the main reasons of the problem followed by discussing the perception of different governments, economists, and various industries that are playing a significant role in this area. Therefore, the thesis statement of the essay can be stated as “Whether the problem of unemployment in Australia will be eradicated or will still continue to prevail and become a major social issue for the country.”

The evolution of Unemployment in Australia

            Unemployment means the state of joblessness in an economy and is calculated in terms of employment rate which can be defined as the unemployment level divided by the inhabitant labor force. The history of unemployment significantly accounts for industrialization as it is directly related to it. Unemployment is considered to be one of the many curses that occur in the society. It is un-foresight and would increase dissatisfaction, annoyance, and hatred. Eventually, it may lead to the collapse or destruction of the general public in the society (Mavromaras et al., 2015). The idea of ‘with no work’ is used to differentiate unemployed people from the employed workers. In other words, Unemployed people can be defined as the people from the age of 15 years and above who are not actively engaged in any kind of work for a particular period or are waiting to begin with a new job.  A rigorous recession began to hit various countries in mid-1990, creating unemployment in those countries and rose to approximately 11% in 1992-93. Australia was one such country to be hit by the recession trend. Australia’s economic growth was strong between 1997-98 and in the ending June of 1999, unemployment falls down to an average of only 7.6 % (Reserve Bank of Australia). However, these records were still not adequate to make sure that all people who wanted to work could get the desired job or workplace to work. The immediate reasons for unemployment in Australia are related to the various ordinary phenomenon. For example droughts and floods can devastate resources of employment. Other than that, technological modernization like companies outsourcing their work will reduce the chances of employment in the country. Other reasons for unemployment can be changes in fashion, which has caused a disturbance in the field of trade.Recently, Australia has witnessed very frequent fluctuations in the unemployment rate. The key reasons for unemployment in Australia are overpopulation, low literacy, economically weak families and many other such reasons. Another major reason for unemployment is a compressed job market. Such a job market is a result of globalization where unemployment has been seen as an end result theory of outsourcing: a practice used by different companies to lessen costs by transferring portions of work to outside suppliers rather than completing it internally.

            Unemployment in Australia has traditionally tended to crop up in various phases. Debates on such issues have been an ordinary incident and folks like scholars and researchers have given various comments on the same phenomenon (Qi et al., 2015). Researchers state that unemployment is just an imaginary condition and the degree of unemployment is very low. On contrary, people also argue that Australia has seen a major development in terms of high prosperity, labor productivity and improved legislation on labor safety.

 Government’s interference is another major reason for the unemployment in the country. Whenever the government tries to intervene in the job market operations in order to raise or bring changes in the laws related to labor forces, it leads to nothing but unemployment. It does not make a difference that whether it leads to a boost in the basic pay rate, reducing the working hours, introducing additional benefits or levying more restrictions on the employees, subsidiary workers who are not benefited from such changes, will either become unemployed or they will not be hired any other firms in the market (Milner et al., 2014). Government’s interventions also lead to enhance the number of unemployed by increasing the welfare paid to them when they are not employed in order to uphold them making the state of unemployment slightly more attractive for the people.

            Australia’s nomadic unemployment rate was observed around 5.6 percent in August 2017, the same percentage was observed in the previous months of the year. The economic policies of the country introduced around 54,200 jobs while the number of unemployed declined by 1,100. In the month of August, the seasonally accustomed labor force employment rate improved from 65.1 percent to 65.3 percent in the preceding period, which was the maximum as compared to past 5 years or to be precise since September 2012 (Trading Economics, 2017). Employment in Australia has actually shown a tremendous hike as the Employment rate increased from 54,200 to 12,269,000, which can be considered as the biggest fly since October 2015 and which also broke other estimates of a 15,000 hike because the full-time employment went up by 40,100 to 8,392,300 on the other hand, part-time employment also reported an increase by 14,100 to 3,876,700 (Trading Economics, 2017). The above-mentioned graph shows that unemployment decreased by 1,100 to 727,500. The number of people who were unemployed was looking for full-time work increased by 6,400 to 501,600. Besides this, the number of unemployed people who were only interested in part-time work was cut down by 7,500 to 225,900 (Trading Economics, 2017).

            The above-mentioned graph shows the willingness of the people to work as part-time workers and full-time workers. Part-time employment can be defined as people who are employed whether they are employees of an organization or are simply self-employed and usually work for less than 30 hours in a week in their main job (O’Sullivan & Considine, 2014). Employed people are those aged 15 and over whom claim that they have worked in profitable employment for at least one hour in the preceding week or who had a job but were unable to work during that particular week while having an official job connection. This graph presented above, as a total and per gender, shows the percentage of people employed as part-time along with all employed persons and is also called rate of frequency of part-time employment. The secular rise in the proportion of part-time employment in Australia reflects developments in both labor supply and demand in the country. In terms of supply side, more elastic employment engagements have made and it has become easier for people to merge their employment with other activities such as education and caring for family members (O’Sullivan & Considine, 2014). On the other hand, if we refer to the labor demand side, firms have used part-time employment to counter-attack to fluctuations in demand for the output and it will help to enhance organizational flexibility.

            According to the Australian Bureau of Statistics and the Household, Income and Labour Dynamics in Australia Survey “The youth unemployment rate for 15- to 24-year-olds has remained stubbornly high since the global financial crisis, a profound economic ruction which has cast a near decade-long shadow on the prospects of youth in many developed nations” (The Guardian, 2017). The report had also originated a growth in young people working in service organisations, with 30% of them belonging to the age of 15-19 years and 10% of 20-24 years of age working in the sector in the year 1986 and the ratio rose to 70% and 40% respectively in 2016 (The Guardian, 2017).

            The reason behind such stubbornness is that the Australian youth are influenced by part-time and elastic job cultures and are least interested in getting involved in full-time job scenario. An additional aspect in such a case is that young people are combining their work with their study which has resulted in the growing number of young people getting employed. This does not explain the rise in underemployment, as the increase in the percentage of informal and part-time jobs has mostly been among young workers who are not studying. Hence, by 2014, 39.3% of non-students were in casual work and 35.8% in a part-time job, both rates were at their maximum since 2001 (Australian Bureau of Statistics, 2017).

            Another perspective regarding the unemployment scenario is that over the last year, all the latest job openings have been part-time on the internet and this is not simply the situation of Australia but the whole world especially the western countries where unemployment chiefly prevails among the youth of that country. In February there were more than 650,000 people between the age of 15-24 years who were either looking for a job or were underemployed (American Bureau of Statistics, 2017). It reflected that there is a rapid increase in insecure and non-enduring jobs, with young people more interested in casual and part-time jobs than at the turn of the century. In November, the Foundation for Young Australians reported the proportion of young people in part-time work had exceeded the percentage of those in full-time employment.

            Following graph shows the unemployment trend in Australia in the past 2years. This information deals with the unemployment that exists among the youth of Australia.

       Youth Unemployment Rate in Australia is expected to be 12.90 percent by the end of August 2017, according to Trading Economics global macro models and analysts expectations. Looking forward, the estimates related to Youth Unemployment Rate in Australia is expected to rise at 12.92 in the next 12 months duration. In the long run, the Australia Youth Unemployment Rate is estimated to revolve around 12.92 percent in 2020, which is not showing any major change in the state of unemployment for the youth of Australia, according to the above-mentioned econometric model (Reserve Bank of Australia, 2017).

            It has been claimed by JP Morgan economist Tom Kennedy that “While the unemployment rate has fallen four-tenths since the start of the year, the underemployment rate has edged up steadily and now tracks 8.7 %, an all-time high” and have explained that the change in rates have historically moved in a random fashion, but such long duration and high magnitude discrepancies have remained uncommon (ABC News, 2017). This difference of concern to economists occurs because it means family income development is not reflecting the low rate of joblessness, which is a key cause for holding inflation at dangerously low levels. Because of this, not only the household incomes are suffering as a result of a large section of society is not able to work for as many hours as they want to, but also because this group of people is interested in getting more work. This enthusiasm will therefore potentially lead to the willingness of the people to accept jobs at lower wages. This sector of part-time workers who are willing to work for more hours has resulted in bringing the level of wage growth rate to the lowest on records that go back to the late-1990s, at just 2.1  (ABC News, 2017).

            Unemployment not only affects the life of an individual but also affect the economy of that country, Economists describes unemployment a lagging sign of the economy, as the financial system generally improves before the unemployment rate starts to go up again. Nevertheless, unemployment causes a kind of undulation effect on the economy (Whiteford, 2014). For example, when one person loses his job, there is one less person that will pay taxes, one less person that will generate revenue for the organization and that will instantly cut back on their non-necessary expenditures due to less non-refundable income and would worry about future monetary safety. In addition, virtually every unemployed civilian will become eligible for unemployment assurance and will begin to slowly take money from the government resulting in increasing the expenditure of the country which will lead to the rise in State’s deficits.

            The government’s center of attention should rather change and must focus on issues like providing opportunities to reduce the number of part-time workers. It should intend to increase the full-time jobs by providing flexible jobs, fixed time scheduling jobs and also make efforts to transform vocational education to proper academic education.

            The eradication of unemployment in Australia can be achieved if secure motivational and inspirational encouragements are initiated by the management and the government in the matter of education, employment opportunities, and by making little variations in the minimum criterion to be held. There are always recurring changes in employment sector (Gregory & Smith, 2016). If growth can be constant it should be feasible to generate a sound flow of innovative job opportunities. There is a fluctuating pattern of demand for diverse job opportunities and the people in need of the job are required to be adequately flexible to deal and adjust with the different scenarios related to these jobs.

            The benefit of prioritizing the full employment objective will directly affect and bring various changes in the living standards of the individual workers. This is expected because higher productivity leads to higher wages and faster growth in living standards. The improvement in the living standards of the society in common is as much better because a larger section of the population will become part of job market operations. This will also signify that the tax burden on the country will be reduced and many more resources can be introduced to weaker and required community projects that will lift the society living standards and welfare benefits which include the development of public schools and public hospitals (Campbell, 2016). The probable modification in policy which is required to achieve the chosen objectives of the country is to capitalize on sustainable economic development and take precise actions to lessen the numbers of long-term unemployed people. Growth will help to create employment opportunities in the country and reduce the necessity for the backing method. Bringing back the long-term unemployed people into the mainstream again will help to develop effective job market for a better working environment and will create the resources for the country to increase economic activities among various other countries.With the aid of these parameters, unemployment among the youth of Australia can be eradicated even though it is not minor problem to deal with but has to be covered at a very large scale as unemployment is comparative to outsourcing concept mutual agreements between private and public sectors can help in eliminating the sense of joblessness among the people. The government aided organizations and public sectors can be motivated and private sectors can be asked to outsource a certain percentage of workforces and rest has to be local country students. Such efforts can fetch desired outcomes.


            On the basis of above discussion, it can be concluded that while there has possibly a lot of attention been dedicated to rates of pay, there is an urgent need to improve teamwork and augment cooperation at the workplace so as to enhance the productivity of an individual. Innovative Reforms introduced to the industrial associations structure so as to influence and establish a new workplace agreements will facilitate to bring changes in the present situation, but another more important aspect to be considered in this situation is the attitude of the organisations involved and their consent to have a creative perspective about potential improvements in the organisation to make it a better place to work. Around 80% of employees wish to have a difficult and an incredibly rewarding workplace in order to carry on their work. Whereas, 75% gives preference for a better work-life equilibrium, various career growth opportunities and superior management and leadership qualities. Besides this, relatively a smaller number of employees give value to improved and enhanced remuneration in Australia. (David Olsen report). The Council of Australian Governments had introduced the National Reform Agenda (NRA) for recovering the efficiency growth and increasing the job opportunities for the citizens of Australia so as to bring human capital improvements. Several strategies are introduced to build up different policy alternatives to diminish the rate of unemployment in Australia. At last, it can be concluded that Australia has become a developed nation over a period of time and, as compared to all other western countries, has a very small proportion of unemployed people. The genuine facts related to the situation of unemployment has been depicted in this essay so as to show that youth unemployment is a severe issue which has grown over a period of time and is beginning to create various long-term problems for the economy of the country. Hence, the thesis statement of the essay can be re-stated as “the problem of unemployment in Australia will be eradicated and will not continue to prevail to become a major social issue for the country.”


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