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The report briefly explains the unemployment rate prevailing in Australia. The unemployment is a contemporary issue for the current time, and it is affecting the nation adversely. The youths are the assets of the economy, and they can contribute significantly to the advancement of nation. The unemployment rate displays the number of people who are unemployed in the economy per 100 people (Carrère, 2015). Higher unemployment rate indicates that the economy does not have the ability to generate enough employment opportunities for the people residing in the country. Thus, an economy with higher unemployment rate falls under the definition of “Developing country” (Madhou, 2019). The unemployment prevailing in Australia for the last 20 years is shown below in comparison with G7 countries:

From the above figure, it can be inferred that the unemployment rate prevailing in Australia was high in the early 2000s. The unemployment rate can be seen taking a spike in 2008 along with all the G7 countries. However, the Australian economy did not suffer as much as other countries. This is because of the relatively smaller exposure to the US housing market and banks in response to the more beneficial domestic lending. After the GFC, APRA started imposing stricter global banking regulations alongwith strengthening the lending standards, thus making the financial sector more robust (Reserve bank of Australia, 2022).

The graphs below depict the data relating to unemployment, further explaining into the number of recipients of job seeker payments and the percentage of people who are underemployed.

It can clearly be seen from the above figures that the unemployment rate, underemployment rate and job seeker payments recipients increased from 2019 to 2020 due to the Covid-19 pandemic. But the decline in these numbers indicate towards the success of the various programmes initiated towards reducing the unemployment rate in the country like Employment Programmes, Jobactive, Veteran etc (Carvalho, 2015). The main motive of the government was to increase the employment rate in economy through increasing number of government jobs, private jobs and many more. The government initiates and employment programmes were the major reasons for severe reduction in unemployment rate (Nguyen Van, 2016). Unemployment rate is longer considered as the most precise tool for indication of just the unemployment as they have multiple factors attached to it indicating towards impact of various policies (Birch & Preston, 2021). The advancement and development of the nation is dependent upon the per capital income of people. The per capita income is directly dependent upon the employment rate prevailing in the economy. Hence, a collaborated approach to analysing unemployment data could serve as a relatively good indicator.

References

Birch, E & Preston, A 2021, ‘The Australian labor market in 2020’,  Journal of Industrial Relations , vol. 63, no. 3, p. 002218562110022.

Carrère, C. G. A. a. R.-N. F., 2015. Trade and frictional unemployment in the global economy.. Available at SSRN 2627644

Carvalho, P., 2015. Youth unemployment in Australia.. Policy: A Journal of Public Policy and Ideas, 4(31), pp. 36-43.

‌Data.gov.au, 2022, JobSeeker Payment and Youth Allowance recipients – monthly profile , https://data.gov.au/dataset/ds-dga-728daa75-06e8-442d-931c-93ecc6a57880/details?q=youth%20allowance

Madhou, A. a. S. T., 2019. Examining structural unemployment in Sub-Saharan Africa: Empirical evidence from unobserved components.. Open Economies Review, 5(30), pp. 895-904.

OECD 2022,  Unemployment - Unemployment rate - OECD Data , OECD.

‌Reserve Bank of Australia (2019).  The Global Financial Crisis . [online] Reserve Bank of Australia. Available at:

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