Essays on Unemployment in the Australian Economy Case Study

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The paper 'Unemployment in the Australian Economy' is a wonderful example of a Macro and Microeconomics Case Study. Unemployment is a situation where individuals in an economy have no jobs or are actively looking for a job. Unemployed persons are those individuals that are willing, able, and qualified for a certain job, but there are no vacancies that can absorb them (Bell, 2000). The Australian Bureau of Statistics, ABS, measure unemployment in the Australian economy by collecting data got from a monthly survey of dwellings including hospitals, colleges, prisons, and communities in Australia.

The ABS uses questionnaires to determine if a person is employed or not. Though the unemployment rate is the commonly known measure of labor underutilization, ABS has a range of steps that combats unemployment. These measures include; Extended labor force underutilization This measure uses the combination of three elements i. e. the underemployed, the unemployed, and groups of individuals attached to the economic labor force in terms of the proportion of the labor force contributed by the group. Long-term unemployment rate These are persons that have remained unemployed for 12 months. This number is measured in percentage in relevance to the labor force. The volume measurement for labor underutilization This measure uses the hours of labor with the overall potential hours of labor force expressed in a percentage.

The rate of underdevelopment-this measure expresses the number of persons that are underemployed as a proportion of the total labor force. The causes of unemployment in the Australian Economy Structural unemployment Structural unemployment occurs because of the inequality in skills present in the labor market. The structural unemployment is caused by factors such as; Geographical immobility- geographical mobility is the difficulty a person has in moving from one geographical area to another.

These factors may include the availability of efficient infrastructure, public utilities like hospitals and schools, and family (Study. com, 2015). There may be a job in a given area, but a person may find it difficult to move because of the family and other issues. Occupational immobility- occupational mobility is the difficulty experienced in understanding new skills that apply to a new industry. The primary factor that contributes to the professional immobility is consistent technological changes. Change in technology-a fall in demand for labor would be experienced in industries due to technological changes.

Replacement of the personnel duties by machines hence renders the employees jobless. Economy's structural changes- lack of efficient competition in the coal mine industry has resulted in the reduced development of labor-saving in the firms. Miners, therefore, become jobless and get it difficult in finding other jobs i. e. in the computer industry. Frictional unemployment Frictional unemployment is a type of unemployment caused by the time taken by individuals to move from one job to another. Frictional unemployment happens because people have imperfect information and a long time in finding a job. Other Causes of unemployment may include; Personal Particular causes of unemployment are the individual attributes that make it hard for an individual to gain and keep employment.

These factors may include poor physical or mental health, low level of training, and limited work expectations.


Bell, S. (2000). The unemployment crisis in Australia. New York: Cambridge University Press.

Cairncross, A. (2000) Introduction to economics. London: Butterworths.

Sharma, A., & Mamgain, R. (2009). Labour markets and employment in Asia. Delhi: Daanish Books.

Shimer, R. (2010). Labor markets and business cycles. Princeton, N.J.: Princeton University Press.,. (2015). What is Unemployment? - Definition, Causes & Effects - Video & Lesson Transcript | Retrieved 24 August 2015, from

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