Unemployment Causes and Underemployment Issues-myassignmenthelp

Question: Write about theUnemployment Causes and Underemployment Issues. Answer: Introduction Unemployment is present in the economy because there exist business cycles. Sometimes businesses are performing well and sometimes are performing poorly. Poor performance leads to loss of jobs through layoffs and the workers are considered cyclically unemployed. Also, the acquisition of skills is a long process and workers cannot possess all the necessary skills. Thus, sometimes a worker with skills is not able to match the available job vacancy because the skills demanded are different; this skills mismatch makes some workers to remain structurally unemployed. The information asymmetry in the labor markets causes workers to be frictionally unemployed. This is where time is taken before a worker gets a job, also a case where a worker leaves a job to look for another, and a case where the unemployed cannot engage in any job available. Lastly, some operations are seasonal and only employs during certain periods; on other periods, the workers are unemployed. Measurement of Unemployment A monthly labor Force Survey is conducted by the Australian Bureau of Statistics every month to collect a sample of approximately 56,000 people who represent the whole economy; there are determined whether they are unemployed based on the set conditions; aged 15 and above, not working, actively seeking and available for any job (Abs.gov.au, 2014). Australian unemployment causes According to Sebastian (2015), unemployment in Australia is caused by slow economic growth. Investment level is low and thus loss of many jobs. The Australian textile, manufacturing and agricultural industries are shutting down accelerating unemployment. The increased population growth also attributed by increased immigration is adding to the labor force. Underemployment in Australia Underemployed persons are the employed who work for shorter hours than they would like to. They are in constant search for a full-time job. An example in the service industry where they rely more on part-time jobs (Heath, 2016). Unemployment on the States and Territories Some Australian states are developed whereas others are less developed. Some has high population growth than others. This explains the differences in the unemployment rate. Conclusion The government can reduce tax rate to lower production costs for textile, manufacturing and agricultural industries to prevent their closure. It can also put restriction to immigration. It can increased its spending to boost investors confidence. References Abs.gov.au. (2014). 6105.0 - Australian Labour Market Statistics, July 2014. [Online] Available at: https://www.abs.gov.au/AUSSTATS/abs@.nsf/0/FBE517ECA9B07F63CA257D0E001AC7D4?OpenDocument [Accessed 10 Oct. 2017]. Heath, M. (2016). Australia has an underemployment problem. [Online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/australia-is-becoming-a-parttime-working-nation-20160831-gr5ygf.html [Accessed 10 Oct. 2017]. Sebastian (2015). Causes of unemployment - common causes in Australia. [Online] Adelaide-southaustralia.com. Available at: https://www.adelaide-southaustralia.com/money/causes-of-unemployment/ [Accessed 10 Oct. 2017].