The paper 'Labor Market in Australia' is a great example of a Business Case Study. In 2008, Australia’ s population was 21 million while the GDP was greater than US$1 trillion. Out of 10 million civilians underemployment, 75 percent are working in the service industry while 20 percent are working in the manufacturing and construction industry. Australia's economy, however, remains highly dependent on export earnings from mining and agriculture, which employs only 5 per cent of total labor force (Greg, Russell and Nick, 2011). Over the last two decades, the Australian labor market has seen great improvements.
There has been a creation of over 3.2 million jobs; this has witnessed the reduction of the unemployment rate to current4.8 percent (ABS, 2008). However, the Global Financial crisis has not been very good to the good state of labor markets in the country. Financial crisis usually brings about economic depressions, which are difficult to manage in the short run. The unemployment rate rose by 0.7% over time while the number of unemployed citizens rising by about 17.4% between 2008 and 2009. (ABS Labour Force, Australia, 2009).
Since 1970, the country’ s economic base shifted to the service-based industries from the primary industries. With the increasing level of output from the manufacturing sector, employment has not been in correlation with sector growth. Within the period of November 1998 and the same month of 2008, the employment rate declined by 1.7% (ABS, 2008). Since 19th century, Australian’ s economic structure has shifted to a great extent and so have the guidelines that regulate it. The labor market has been changing with the dynamic environment. Several changes especially in the labor-management, the pressures of labor unions and the requirements of what constitutes an appropriate model of employee relations have evolved over time (ABS, 2008). MAJOR CHANGES IN THE LABOUR MARKET Globalization has been the major catalyst in the Australian labor market changes.
The Australian government has amended its strategies by what means the economy ought to respond as a response to changes in the international economy. Various changes in the economy have necessitated changes in the labor market (Beardwell, 2010). To explain the changes in the labor market, political and economic trends are of much help.
The various governments which have come in place try to bring different amendments in labor laws in order to achieve their promises to the electorates. PERIOD: 1970’ s This is a period of a turning point. Many changes were experienced during this period. The main employment change during this period is the increase in unemployment. With economic decline coupled with the change in policy from the old conservative approach, the labor market also had to change in line with the economy and political movements. The rate of unemployment during this period rose due to economic downturns (Lansbury, 2000).
The economic slump had an implication that profits had to reduce to a level where employers lacked what to use in employees’ salaries. Therefore, downsizing was the only available option. The unemployment rate rose during this period to 6.3% (Bamber, 2011). This period also saw the introduction of structural changes in the means of production. There was a high introduction to the use of machinery and computers in the production and service delivery to customers (Gardner, 1997). The high reliance on technology during these times saw the further dismissal of unskilled workers who were unable to fully use the new technology in the working sector.
The use of the new technology also reduced the labor force given the fact that technology is capital-intensive means of production and hence is faster and requires fewer employments than the other labor-intensive means of production (Lansbury, 2000).
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