The Australian unemployment rate is closely related to the Economies financial

condition. As seen in the graph, unemployment rises in the late 1900s; this is due
to the recession at the time. Recession is an example of cyclical unemployment
and it causes massive amounts of unemployment as the businesses are trying to
employ the least amount of people to cope with the little or no revenue. The
peak at 1993 is causes by the decreases in the stock prices since Black Monday,
which happened in the October of 1987. Since 1993, the rate as slowly decreased
as notable in the graph. This decrease is due to the fact that Australian hasnt
been involved in another finical difficulty, not until the Global Financial crisis.
The lowest point of 2008 is due to the economic stability and also because
unemployment again rose after 2008 because of the global financial crisis. The
graph of participation rate tells us how the unemployment rate accommodated
for the rising population. The massive grown in population is mainly due to
migration.

Unemployment is caused by decisions made by the government, individuals or
businesses. A number of Australian studies show microeconomic and
macroeconomic perspectives on the causes of the Australian unemployment
problem. When young people lack experience and skills, they are not required by
businesses and are therefor unemployed. According the ABC, youth
unemployment was at 15 precent in the August of last year. This is an example of
structural unemployment as it is unemployment cause by a mismatch of skills
people have and the skills businesses require. When people change jobs, there
will be frictional unemployment, as the individual will have to find another job.
Another cause of unemployment is when a countries trading partner has a spike
in unemployment. If China were to be in recession, they would want less of our
resources and therefor businesses will decrease the amount of employment. This
is an example of Cyclical Unemployment as there is a downturn in the business
cycle. Migration and our increasing population is also a problem that causes
unemployment, as there will be more people looking for employment than the
number of jobs available.

The lack of skill and experience in young people causes unemployment in
general. Youth unemployment is a very major contributor in increasing the
unemployment rate. This type of structural unemployment occurs because there
is a mismatch in what businesses want (experience) and what the labour force
has.

When people move locations and change jobs, there is unemployment. This
frictional unemployment is caused because of the mismatch of skills, payment,
work time and etc. The structurally unemployed people of the car industry are
also frictionally unemployed because they are trying to transition from one job
to another and are unemployed in the mean time.

Importing goods from other countries with lower labour costs causes
unemployment. Countries such as China can makes the same goods we make as a
much lower price, and if consumers start importing, there will be more leakages,
leading to a higher unemployment.


When people are unemployed for a long time, it is hard to be re-employed; this
causes unemployment. During 1994, there was a peak in the number of long
term unemployed percentage. These people will lose their job related skills and
will find it very hard to re-enter the employed part of the workforce.

Spending is the key to solving unemployment. When an economy slows down,
there will be higher unemployment, as there is less demand for goods/services,
which causes less demand for employees. To solve this, the government spends
massive amounts of money, causing derived demand. The government can also
cut down interest rates, which is basically the same as making goods and
services cheaper. The Job programs and incentives that the Australian
government offers are also trying to reduce unemployment. The 50 year olds in
the car industry still have children going to school, most of them will be
unemployed, to solve this the government uses retraining programs. The work
for the dole program is a form of welfare that provides job skills. These types of
welfare have recently been amended to lower standards.

The impact unemployment has on individuals and society effects all Australians.
When individuals are unemployed, they lose tax revenue, as there is less tax
payed by the individuals. The unemployed also cause welfare spending to
increase that causes a decreased amount of spending in other services like
health. The rising crime rates are also problematic, and the whole of society will
is majorly influenced by how safe they feel. In conclusion, there are a lot of
consequences that unemployment brings.