Business Cycle Characteristics of Labour Market †MyAssignmenthelp

Question: Discuss about the Business Cycle Characteristics of Labour Market. Answer: Introduction Australia economy has fallen a victim of unemployment like any other economy in the in international market. The unemployment rate in the Australia has been changing with no constant/ pre-determined % of concern. High unemployment rate situation is still being witnessed in the country in the past five years with 2017s seasonally adjusted figure being 5.6% in August 2017 as in the months earlier matching the estimates in the market. During this period, Australian unemployment rate stood at eleven percent. Such a record rate was subsequent to worst financial crisis never witnessed in Australia (Evans, 2015). Australia has had about 6.7 percent unemployment rate on average in the last five years. The decrease denoted an improvement alongside creation of hope amongst Australians. The Australia dollar regained its value, economic sectors showed improvement while investors were enticed to invest in Australia. In 2013, Australia showed the economic performance relative to its trade partners including the US. Unemployment exists in a country in case there is any worker who is ready as willing to work with required and relevant skills and knowledge. Any worker who is willing as well as ready to work yet is presently not working is regarded as being (Bonoli, 2017). Accordingly, unemployed individual is one in labor force endowed with the below listed characteristics; Lacking any paying job presently and remains actively searching for the job either via an application letter, online application or walking from a station to another searching for work He is willing as well as able to begin working as early as a week ago. He is waiting to begin operating if he lands an opportunity subsequent to being retrenched from previous job or stopped working due to not being remunerated. He is falling in fifteen years with appropriate knowledge together with skills capable of landing him employment in the economy. Any individual in Australia who falls in overhead group is being unemployed. Accordingly, Australias unemployment describes the numerical composition of males and females with required knowledge alongside skills, aged fifteen years and above, ready as well as willingly searching for a job vacancies yet unable to get employed. They include persons who within Australian labor force (Gregory Smith, 2016). Australian Unemployment Trend and Labor Market The country has experienced surprising unemployment trends in the last five years. This is depicted between 2013 and 2017. Australia is vast with economic blessings amongst the ECD memberships, however, the economy is yet to stabilize the labor market in order to effectively accommodate its aggressive and youthful citizens (Yusuf, Martins, Swanson, Martins Swanson, 2014). The unpromising rates of unemployment between 2013 and 2017 are as a result of Global Financial Crisis shook Australias economy. Right from early 2013, Australian rate of unemployment has averaged at about 6.70. Australia labor market has had a structural growth alongside amplified export-derived revenue collection. Australian industrial sector witnessed a growth thereby accommodating unemployed population because of foreign investors trusting the economys stability in currency between since 2013. The industrial sector growth opened up job opportunities thereby absorbing the countrys unemployed population especially women. Australian labor market regained strength because of labor demand surge triggered by growth in the economy. Nonetheless, subsequent to GFC and corresponding effects to all ECD, the labor market of Australian is still weakened to date. Rate of unemployment has been soaring from 2013 and continued reaching 6.2 percent in 2015 but has since dropped to 5.60% in August 2017. The country has been caught up in a recessions accompanied with negative impacts on growth of economy as aftermath. These recessions have accounted for the instability in labor market in Australia to date. Such recessions including the GFC still account for the damages to labor expectations in Australia especially the youthful group even between 2013 and 2017. GFC was accompanied by declined employment period, diminishing opportunities for job, augmented unemployment periods, decreased opportunities for employment alongside worst increase in uncertainties over vacancies. The labor market was extremely weakened characterized by laying offs and retrenchment as the sole option for few working group accommodation. The Australia has been picking up from 2013 through 2017 with reports showing 5.6 percent as unemployment rate in August, 2017. Improvement are expected because of Australia dollar stability alongside economic growth sustainability among ECDO memberships. The Australia has unbalanced labor market with respect to distribution of unemployment. More of the youths are unemployed than adults. About 12 percent of Australian youths remained unemployed subsequent to the disparaging GFC. Almost 2/3 of Australian total unemployed persons are youths. Such a trend is discriminatory as it kills the Australian future labor market. A great percentage of Australian youths aged between fifteen and twenty-four years are not only ready but also willing to work for the prevailing wage rate but they are unable land any opportunity (Flche Layard, 2017). The Australian high number of unemployed youths is due to adjustment in structural alongside economic. Weak Australian labor market exemplifies weaker economic conditions hence low income levels thereby negating purchasing rate. Decrease in population spending prevents the profitability of money in circulation to the prevailing or working industries. Subsequent to the 2008 recession, several industries stopped operation, whereas others industries cut down the size of workforce. The effect of such duo changes led to a reduction in the probability of new recruits absorption in companies. The remaining firms alongside companies made a decision to depend on adults with ready and required experience as well as skills. Youths in Australia were left with no option than to stay unemployed as they await openings. The unwillingness by the remaining industries to provide training for novel recruits without associated skills alongside experiences also derailed the probability of the Australian youths to secure jobs (Argy Nevile, 2016). A huge proportion of Australian youths comprises fresh graduates and students. A few youths make up products of young individuals Not in Education, Employment or Training (NEETS). The Australian youths are searching either voluntary or part time jobs without remuneration at all. More men are unemployed than female youth counterparts because higher rates of ladies absorption in administrative as well as secretarial jobs as opposed to males. Youths unemployment in Australia has amplified following the above mentioned recession. The aftermath of GFC has affected a great number of youthful males than corresponding youthful female population thereby projecting long-run employment to employ as well as underemployment in Australia. Such an unemployment in the eye of decline labor hours hence a decline in the income levels. As outlined in the 2015s Australia Bureau of Statistics, virtually 299,000 Australian youths aged between 14 and 19 years were not employed in 2015, demonstrating a 14 percent. Though, amongst the unemployed Australian youths according to 2015, people age between fourteen and nineteen years stood extremely unemployed than to those persons between 20 and 24 years. Such a finding is reinforced by the revelation that a small percentage of 14-19 age bracket took part in job opportunities. More men were also unemployed than ladies besides the discrimination depicted on age aspect. Australian labor-market rates of unemployment alongside underemployment account for underutilization rate of labor of about 30.4 percent, denoting deterioration in investment amongst human capital from youth (Morris Wilson, 2014). More skills and knowledge possessed by employability level youths lie exploited as well as under-tapped. Such human capitals, therefore, do not partake in Australian innovation as well as technological adaptability. Youths frequently from native regions of the country are never considered on noteworthy opportunities in Australia. They, therefore, contribute principally on unemployed youths percentage. They comprise of youths from backgrounds of lower cadre social-economic. Why Rampant Youth Unemployment Australian youths agonize the most in unemployment in Australia due demand- and supply-related factors that can be well be understood on the basis of market theories of demand and supply The labor-market operation is determined as well as influenced mainly by the supply-side theory along with demand-side theory. The duo ideas operate together thereby dictating the employability of labor in labor markets (Groenewegen McFarlane, 2014). The duo account for welfare concept which clearly presents the definition of persons welfare in the economy. Demand- and supply-side theories presents the positive or negative determination of the welfare status of a person in the market. They can establish incentives or bring discouragement for an individual to participate in market. The theory of supply-side is anxious with the labor factor attributes. It undertakes an examination of the youths skills alongside behavioral actions capable of earning an opportunity in labor-market. Supply-side exemplifi es more on youths inability to adapt to the requirements of a job regarding reliance on welfare which boasts the interest of a youth towards accomplishing requirements of demand in the market. Theory of Supply-side further is a discouragement for youths to improve adaptability, decrease the spirit of personal ability motivation as well as attain novel skills responsibility appropriate to demand (Cockx Picchio, 2013). This theory stresses on the discouragement concepts of a youth who is hesitant sell his labor hours, however, upholds a great anticipation of huge compensation. The theory of supply-side discourages potentials of establishing opportunities for jobs for youths. Demand-side theory conversely distillates on the social democracy kind of theory for governance. Demand-side defines the unemployment of youth as absence of labor demand/ lack safety and decent job. Demand-side theory makes government accountable for youth unemployment opportunities. It posits that administration need to establish job vacancies for achievement of welfare concept (Mavromaras, Sloane Wei, 2015). The concept of welfare dictates that the government intervene as well as curtail the unemployment by improving social-security alongside minimum social-protection. The government of Australia has not placed concern on theory of demand-side, yet it has focused extremely on supply-side theory. The government has utilized supply-side alongside welfare policies to trigger economic growth hence restraining opportunities of having youths in labor market. Individual Employability Individual soft skills Individuals level of aspiration and motivation Programs geared to assist a person to boots his/her skills, employability, knowledge, education level and mobility. The roles and responsibilities of social networks The providers of education alongside training, Non-Governmental Organizations, agencies, and employers responsibilities in the market. The responsibilities and roles of families Demand-side theory focuses on structural factors: Concentrates on unemployment levels of young generation Intervention in education sector Intervention in the labor market Intervention in welfare factors It examines geographical disadvantages in the market Lack of structures in the market to support career Reduced number of training opportunities/programs It is clearly apparent that the Australia has been stressed on supply-side theory that lacks motivational interest on youthful population needs to acquire jobs. Types of Unemployment in Australia Australia has faced major unemployment types including: Cyclical Natural Structural Structural Unemployment It is usually felt in Australian market because of production criteria alterations. Where the company alters its process for production, there is certainly the establishment of unemployment. The alteration in the process of production can be increased because of new technology adoption in market/ increased level of competition that dictates that a company retrench certain workers to realize benchmark of profitability. The economy of Australia has suffered because of this kind of unemployment. The following are the triggers of structural unemployment in Australia: Closure of business alongside a reduction in profitability. Supply-side in the market has negative consequences in terms of profitability levels reduction. Declined profit will subject the company to various inabilities to sustain for coming expenses of production. Besides costs of production, a company, will be unable to uphold financial objectives. Such scenario provides a business with no alternative but to stop employing people to retrench on employees. Australia witnessed this behavior in 2013 whereby many firms projected at exit Global market effects. Global market triggers high markets competition. Firms unable to sustain such high competition levels in the market will have to resort to other ways for survival in market. Some firms are compelled to close their businesses due to financial crisis alongside decreased consumer spending. This behavior has led to high unemployment rates in Australia. Relocation to other geographical areas. During the countrys financial crisis leading to weakened and fluctuating currency, firm make decisions to relocate to and operate in stable economies countries. Firms can as well as move from a city to another with a good number of consumer thereby increasing purchases although at lower value for money. The relocation impact is damagingly for the jobless/retrenched individuals as a result of closure. Skills mismatch and change in technology. Supply-side theory might be accompanied by novel concept of technological production. The novel concept could call for computers use instead of labor force. Thus, certain workers may be laid off hence causing jobs loss. Australia remains on the technology experts verge. A great number of Australian operations have moved to the computers utilization in place of human labor. Many workers were retrenched in in the course of novel technological system adoption (Carcillo Knigs, 2015). Skills mismatch remained a major accounting factor in rate of Australian youth unemployment. Many Australian industries call for a highly skilled and experienced workforce, seldom do such industries require fresh graduates. Only smaller proportion of industries are willing and ready to provide upskilling training programs. Accordingly, Australian industries stay unemployed without certainty on when they might land any job. It results when Australia spends less on significant commodities. The ability to spend turns weak thereby negating opportunities for job establishment to the jobless. The recession disrupted the financial power of Australia which still account for cyclical unemployment between 2013 and 2017. Australian currency became weak to sustain global market competition. The effect was a reduction in spending power of Australia. Cyclical unemployment terminates in case recession impacts cease. Subsequent to cyclical unemployment on countries a better growing economy alongside stable currency can rapidly pick up. Decreased firms confidence level. A decrease in firms confidence level as a result of instability of economy results in plants closure. Firms cease the production because of absence of market demand. Firm will thus make no sales. The close down culminate in unemployment in Australia. The declined level of income of household. Where household income level drops, spending habit among household hampers emptying into a demand decline. When Australian demand level goes downwards, firms shall not produce hence employed workers will be jobless. Pessimistic nature of Consumers. Where consumers anticipate uncertain future employment conditions, they halt expenditure forcing several closures among firms. Natural Unemployment It is mainly a supply-side-derived unemployment. It is usually widespread in Australia irrespective of stability of the economy. It is also widespread in healthy economies. It results from supply-side impact on market thereby altering the manner of firms operations. It hampers original production processes organization, profitability of business as well as recruitment system (Bell Blanchflower, 2015). Australias unemployment differs across states because of diverse states economic power. States mentioned here include Tasmania, New South Wales, Western Australia, and Queensland alongside South Australia. The unemployment rate varies without any state equals to another. Tasmania currently shows the highest rate of unemployment among these states. Tasmanias rate or unemployment stood at 22.2 percent overall with youth unemployment rate being 10.1 percent. This demonstrates degree of agony triggered arose from GFC. A great percentage of Tasmanian youths remain jobless relative to other states. Tasmania is succeeded by South Australia (SA) state with rate of unemployment standing at 21.8 percent somewhat below Tasmania. The youth unemployment rate in SA stands at 15.4 percent displaying a reduction from the previous years. The Western Australia (WA) is the third with rate of unemployment being 21.3 percent. The WAs youth unemployment rate stands at 10 percent. Queensland State (QS) comes fourth with unemployment rate of 21.2 percent and 13.95 percent rate of youth unemployment. This state has had its youth unemployment rate surging 6.95% against the 7.0% 2008s record. The New South Wales is the best performing among these states with an overall rate of unemployment of 20.0 percent and 10 percent youth unemployment rate in 2016. Australian Government Policy The government of Australia has embraced a number of policies alongside programs to address unemployment crisis in the labor market. Extra weight has been exerted on youth unemployment. The policies together with programs include; Educational Reintegration. The administration appreciates the significance of reintegrating education into other essential sectors to prepare Australian youths for forthcoming economy prior to graduations. Accordingly, the reintegration policy focus on the provision of maximized assistance for sectoral reintegration into education. Some of reintegration benefits include incorporating art into financial assistances alongside additional appropriate areas not only force them to education singly. Long-term basis career management orientation. Government provides guidance alongside orientations to assist youths on to make rational decision during course selection. The learners can turn such skills into lucrative opportunities following graduation. Using parents as key partners. Australian government regards parents as vastly talented individuals with ability easily influence life of others. Accordingly, parents are engaged in support provision via Career Transition Supports Program. Conclusion GFC alongside additional global issues greatly account for Australia unemployment. The Australian government has, however, stayed obstinate to embrace working and right initiatives that can effectively tame the issue of unemployment. It seems deliberate for Australian government to ignore the welfare of the youths by stressing solely on adults population. It is precise from the discussion that Australian government can utilize policy alongside programs among them sectoral reintegration into education to tame the ever worsening unemployment phenomenon amongst youths. This policy, if well implemented, will yield more opportunities to youths by exposing them to economic situations of the real world. Despite being a global problem, Australia is well-positioned to tame the unemployment impacts on youths by focusing on demand-side theory of labor market. Australian government must adopt such policies and programs that advance economic labor power. This will be achieved thorough a multi-sectoral collaboration that brings together all the stakeholders including professionals and parents to shape ideologies which boost job creation capabilities. References Argy, V. E., Nevile, J. (Eds.). (2016). Inflation and Unemployment: Theory, Experience and Policy Making. Routledge. Bell, D. N., Blanchflower, D. G. (2015). Youth unemployment in Greece: measuring the challenge. IZA Journal of European Labor Studies, 4(1), 1. Bonoli, G. (2017). Labour market and social protection reforms in international perspective: parallel or converging tracks?. Taylor Francis. 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