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Unemployment in Australia last five years

Unemployment is the state whereby a section of the population is unable to engage in jobs and nation building activities. This does not only affect developing countries but has also affected developed countries for instance the case of Australia (Gregory & Smith, 2016). Unemployment means that there is imbalance between the economy and GDP of a nation and this affects the economy greatly. Everyone has needs and has to cope with the trend of the economy. Despite the nature of employment or unemployment, the economy assumes that everyone is able to cope with the current trend and fit into the larger economy system. The rich and the poor are graded by the same economy system and therefore the unemployed have very many struggles to encounter. That is why various nations allow foreign investors since it is a way of creating jobs for their people.

The economy of a nation has impact on the number of jobs it creates. The better the economy, the more the number of jobs it issues to the public. According to a research compiled in 2012 by the common wealth, it is very difficult for a nation to produce enough jobs for their people but the only things they can ensure is balancing the economy GDP and reduce unemployment levels. Since the agrarian revolution, many countries have always been on the run to balance the level of unemployment. Some nations like the United States have beard some fruits since the unemployed level of the US was reported to be 6.05% back in 2016 (Miller et al, 2015). The matter seems to be very difficult for countries like China, Iraq, Australia and a larger part of Africa and the Middle East.

The capital city of Australia is Canberra and the country covers an area of 7.69km square with an approximate [population of 20.0 million. The currency used is the Australian Dollar. Its economy is one of the best in the world since the GDP was $1,189 billion in 2016. Its economy is widely developed with a series of mixed markets. In 2017, the GDP recorded was AUD$8.9 trillion which marks a big change when compared to 2016 (Qi et al, 2015). It is ranked the second wealthiest country after Switzerland when computed in terms of wealth per adult. Australia has a good history of the market tenure and they have secured excellent positions which indicate that their economy is developed.

In terms of nominal GDP, Australia was number 14 in the world and 20th largest in terms of adjusted PPP-GDP.  It was ranked position 25 in terms of product importation and exportation. The service sector has widely dominated the Australian economy with a GDP of 61.1 %. Despite all the economic advancements in Australia, the industrial sector of the country has been able to absorb 79.2% of its people into the labor force back in 2011. The rest of the population which is approximately 4.16 million people is left behind without jobs (Gregory, 2012). The larger part of the population has been absorbed by both private and public sectors but still, unemployment is the major problem. For the last five years, the unemployment levels in Australia seem to be changing abruptly compared to 2003. Actually the trend is moving from bad to worse.

According to the weeks reading, 2017 reports indicate that the unemployment level of Australia is 6%. This has negatively affected the economy of the nation since such percentage was recognized back in 2003. Since 2012, the picture seems to be gloomy as the unemployment levels are going up from now and then. Maybe this is due to the shift of industrial production and freezing of private investors. Change in the unemployment was realized in 2012 when things turned sour. Things were streamlined from 2005-2008 but now the graph lost its shape in 2012 (Gregory & Smith, 2016). This has brought a lot of shock and tension as it has remained the same till 2016. The rate of unemployment has remained high and stagnant from 2012 to 2014.

A slight change was experience in 2016 but had no impact to the economy since it was just a small fraction. The high unemployment rates experienced in 2013 were accompanied by drawing of the labor force and many people were seen to seeking employment in other countries and private sectors. Although the unemployment trend had risen by 2.1% in 2013, the year 2014 was great turnover of events and the rate dropped by 2.3 % marking the same unemployment rate that was once realized in 2012 (Miller et al, 2015). Since the best economic trends were experienced in 2003, there is a change when compared to 2013 and this was due to drop of imports and exports.

Rise of unemployment suggests that there are higher prices given for exports that the cash received from imports. Basically an imbalance between what a nations gives and what it receives, is an indication that there will be a deficit in the currency and economy level. Generally, the unemployment level of Australia has marked a stagnation form 2012 to 2016. The economy system has really tried to make things work but it keeps deflecting from 5.5- 6.0% (Mavromaras et al, 2015). Now the main question remains, what is the mistake that Australia is doing in their economy? Why did unemployment level go up in 2012 yet there is technology compared to 2003, where cases of unemployment were few?

The most important reason for addressing this issue is because it is an uprising issue that requires much interest and time to handle. Apart from the other things that affect a nation, unemployment affects almost every nation and a nation has to be ready to tackle it. It doesn’t necessarily mean that it has to end totally but it can be reduced by all means. This is a key issue that almost every nation wishes they could handle properly but it seems challenging at some point. Some countries will clearly handle it and move on while others for instance developing countries are always on the run (Gregory, 2012). Definitely, there are reasons for the case of unemployment and the issue can be handled appropriately. After a series of research the causes and effects caused by unemployment in Australia are as follows.

Industry shutdown has been the main cause of unemployment in Australia. Such industries like manufacturing, textile and agriculture put many people in the unemployment section after they close up. This has happened severally in Australia where several companies have left thousands of people without jobs. The left companies are unable to absorb all the people in their companies and therefore they end up being unemployed. For example, a series of manufacturing and car assembly industries have been shut leaving a large number of unemployed people. This majorly happens to laborers who have no precise job and they depend on companies (Gregory & Smith, 2016). The worst part is that some of the companies left operate in seasons which mean that they have to call off their employees at some intervals leading to stagnation.

Infrastructure has a major role that it plays in the lives of many people. Laborers are always absorbed in construction companies which are affected by economic stagnation. For instance if the Australian infrastructure sector has no tenders to offer to employees, they end up fleeing to other countries (Baetschmann et al, 2015). Only skilled employees and engineers flee away for greener pastures leaving behind thousands of laborers. Many infrastructure companies operate in seasons and at other times there are no jobs which mean that laborers are declared unemployed. The Australian government has really tried to grant job safety to companies but still there seems to be shortage of contracts which forces such companies to flee to countries like Japan and China.

The Australian government is also answerable for the job insecurity in the nation. This is because it has led to off shoring of large companies. Back in 2015, there was a policy introduced by the taxation system which declared that all companies have to pay more taxes in order to continue with their businesses. This scared away foreign investors who opted to invest their companies in other countries. Also for the already established companies, they had to shift their companies to other countries where the level of taxation is low compared to Australia (Mavromaras et al, 2015). The case was presented in the court of law by the companies act but nothing has been done to restore the old taxation system. Now this has directly affected people’s way of life due to unemployment. People are tired of fighting for their jobs and them still waiting for the government to settle the matter and attract more companies. At some point when companies are exposed to heavy taxes, they intend to produce quality products and services and therefore they are forced to practice recession. The company selects the best hardworking and competent employees. This will definitely send some people away leading to unemployment.

The immigration sector in Australia has also been affected by immigration. The 457 rort visa is the main cause of immigrants who take over mining sectors leaving the people born in the nation without jobs. It is believed that the immigrants are considered to be creating new jobs in the nation but they later take all the jobs and give them to their people. In 2012, an oil company constructed in the Australian suburbs clutched all the jobs and gave them to non citizens. The Australians got only 5% of the jobs and the others were given to immigrants (Hawthorne, 2016). When asked they said that the company required qualified and trained personnel from other countries.  Since 2012, technology has been affecting the number of jobs presented to people. After conducting different meetings and agreement with countries like Korea and Japan, the level of technology has gone up. Considering construction companies, most of the activities done by over 100 laborers are conducted by a single petrol or electric operated machinery. Therefore a company will not keep employees while their job cannot be identified and the rising level of technology has led to unemployment. Research also shows that unemployment has been caused by the rising population. Jobs may be available but they may not serve everyone since the positions are limited (Qi et al, 2015).

Though unemployment may sound like a self problem, it has very many effects to the economy and the people themselves.  Some people may not directly feel the impact of unemployment but with time, they later learn that they are indirectly influenced.  Australia has been facing numerous challenges due to unemployment. Of course when a country experiences unemployment, then it means that the economy and productivity of Australia has gone down. When compared to 2003, the productivity of the agricultural sector has greatly gone down due to hiring of fewer employees in the firms (Hawthorne, 2016). If companies are unable to sustain their employees, then the nation is unable to balance between its exports and imports. Afterwards, Australia is importing more that they export and the economy has generally gone down.

The social lifestyle of people has also been affected by unemployment. When people are unable to get genuine jobs, there is a possibility that they will look for other ways to sustain their daily life. This is where immorality like prostitution comes in. Many people do not practice prostitution because they love it but it is because they have no option (Whiteford, 2014). Others may also engage in theft and drug trafficking. It is evident that some parts of Australia are unsafe to walk during the night due to the dangers caused by theft. No one will sit behind and watch others eat expensive food while they cannot even afford a bottle of water. This motivates people to engage in theft since they believe that it is the only remaining option.

Also on the matter of social life, there is increased poverty among a portion of people in Australia. Both blacks and whites suffer the same after the increased rates of unemployment. It has been reported that the rate of needy children has gone up leading to school dropouts. This is because their parents are unable to provide basic needs like food, shelter and employment. Generally this can be called increased rates of poverty where people struggle to make ends meet. Due to stress and lose of hope in life, youths in Australia have engaged in drug abuse simply because they are idle and have nothing constructive to do (Fu et al, 2013). The social life has also been difficult through tension in homes and reported cases of suicide. This may not be directly connected to Australia but it happens when people suffer unemployment. This has really impacted a large number of youths in Australia with a number of them locked in cells due to committing of crimes like theft. All these are effects of unemployment. If such people had some work to do, then no one will try to engage into crimes like theft and drug trafficking.

When jobs are not available, it is normal that people will tend to save rather than spend. Therefore the circulation of cash is slow than when people are aware of job security. This affects the economy and it drastically drops. Also for the employed portion of employees, they tend to spend less since they are not aware if they will retain their jobs or will get sacked (Jones et al, 2015). Generally, there have been series of insecure companies that keep warning people that the company may not be operating in future. This leads to job insecurity among people and therefore people cannot live in peace and have enjoyable life.

Concerning the current fragmented economy in Australia, there is little hoe on dealing with unemployment. A research done by Common wealth organization suggests that things may get worse come 2018. Since this is a serious matter that requires close supervision to handle, Australia seems to be putting fewer efforts in making the dreams come true. Come next financial year, Australia’s economy is expected to decrease due to the loopholes that have never been handled by any case. By June 2018, the rate of unemployment is expected be 6.85 percent and remain at that until January 2019 (Milner et al, 2013). Offsets are expected to be available and many companies may be closed due to poor management.

Also cash deficit may be affected. It is expected to be $29.8 billion and the Gross Domestic product may range 1.6% to 1.8% (Hawthorne, 2016). This forecast may be shocking and many people have been shocked considering the current poor economy system. What will happens if the situation gets worse and the rates of unemployment continue to hike? Well the working class has a lot to lose and also the self employed group may suffer a lot. Once there are no jobs and the economy gets worse, definitely the private sector will not have enough cash to run their businesses. This has affected the business sector in the manner that everybody is willing to clear their stock before the low season approaches.

Unemployment may seem like a joke but it has several negative impacts in future. This may force people to flee Australia and seek for jobs in other countries. Brain drain is also expected to affect the nation since learned people will have to search for well and better paid jobs in other countries (Whiteford, 2014). With time Australia may completely lack labor making the situation worse. People will also not be interested in setting jobs in a place where the economy seems to be stagnant. Precisely, the economy may shift from bad to worse and retaining it back becomes a challenge. According to research, the economy system and unemployment level of Australia is not bad than when compared to countries like China and Japan. Therefore unemployment can be solved through a series of steps as discussed below.

Since many industries are the main source of employment, there is a need of advancing industrialization in Australia. The government has to open channels for creation of more industries for example agriculture, textile and manufacturing, processing and assembling. The only way that the government can advance this is by supporting the locally available companies by giving those loans (Milner et al, 2013). Australia must also open channels for private and foreign investor in the nation. This can be achieved by reducing the tax rates and regulations that hinder people from investing in Australia. All this companies will have the ability to create numerous job opportunities for the citizens of Australia. In addition, there must be decentralization of industries and locate some in the rural areas to cater for all the people. This can also be a great move to reduce rural-urban migration which causes a lot of jam and congestion in large cities.

It is not a must that one has to be employed in order to earn a living. The government should advice and urge people that self employment is the best job that one can ever create since the limitations are few (Fu et al, 2013). This involves urging people to enter into industries like agriculture and craft. To enhance this, there is a need of establishing vocational and educational centers to reach people on craft and business skills that can be applied to advance the economy. By so doing a large number of people will be absorbed in the private sector leaving behind a reasonable number of people that can be freely absorbed into the job markets. Self employment opens new channels and motivates people to work harder as the fruits are faster and appealing. The government must also organize youth advice programs whereby the youth can be advised on better ways to secure jobs.

Finally people may also lack jobs because they concentrate on specific areas. Some jobs require high entry requirements while others do not (Hawthorne, 2016). Due to lack of skilled knowledge, people will converge in jobs with few entry requirements and in return they argue that there are no jobs. Therefore, the better way to handle this is by urging people to acquire a lot of educational knowledge and skills that can enable them venture into different fields in case there is scarcity. This is a form of job security when one has different experiences.


The levels of unemployment in Australia seem to be stagnating for the last five years. The situation was better back in 2003 but now everything seems to have changed. There are disappointments concerning the economy and people fear that Australian economy may get worse in the next two years. Unemployment is mainly cultivated by poor management of the industrial sector which is the largest producer of jobs. Therefore the Australian government has to keep watch of the economy before it gets worse. This can be done by giving industries the opportunity to penetrate the market and give people the chance to explore business. If all the specific measures are followed, there is a possibility of handling the economic deficits and unemployment.







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