Eco Unemployment Essay

Analyse the causes of unemployment and their effects on the Australian economy.

Unemployment is considered a major economic issue, emerging when individuals in the

Australian economy are seeking employment, however, are unable to find work.
Unemployment is referring to people who are aged within the working age of 15-64.
Unemployment is measured by the Government through the unemployment rate, taking
the number of unemployed people and dividing them by the size of the labour force.
Unemployment occurs in numerous ways, including cyclical unemployment, structural
unemployment, frictional unemployment, seasonal unemployment and underemployment.
Australia’s current unemployment rate of approximately 3.7% is considered historically low,
with the economy currently operating below the Non-Accelerating Rate of Inflation (NAIRU)
which is approximately 4-4.5%. Unemployment can lead to numerous economic and social
costs, with

Para 1: Cyclical UE
Para 2: Structural UE
Para 3: Deterioration of budget balance
Para 4: Slow wage growth contributes to combatting inflation, especially with UE below
Nairu
Para 5: Social Costs