Contents

Government policy on unemployment in Australia.............................................2

Government policy to reduce unemployment....................................................5
Causes of the changes in polices........................................................................7
Current policy..................................................................................................... 8

Government policy on unemployment in Australia

The analysed topic is very much significant in recent times as there is an immense increase in
numbers of unemployed people. And with the countrys perspective if people will be
unemployed then it will not only affect them negatively but also it will affect the annual rate
of income and saving of the country as the countrys per capita income or the total GDP
depends on its citizens income, saving and their investment and also over their purchasing
power so for making a country completely developed it is important to reduce the
unemployment and increase the job scope for every individual. The unemployment graph of
Australia has been increased to 6 per cent in March of 2015 approximately. This rate has
been recorded by the Australian Bureau of statistic.(Chia 2003)

This is not a problem of any particular area but it is an issue of several sates in a country so
the analysis can illustrated with the study of some specific region of Australia like NSW, WA,
SA, Tasmania etc.(Coomber 2014)
For reducing the problem of unemployment in the different region of the country the
Australian government has taken few measures by introducing some policies. Lets first study
about the different regions unemployment issue;

New South Walesregion of Australia is also suffering from unemployment problem. The
figure and structure of the region illustrate the demand for job and also mentions the need for
the labour supply but it varies according to age of the worker.(Hyeok Yong Kwon 2010)

With this graph the unemployment the approx rate of unemployment has been illustrated
under this unemployment rate is counted from the age 16 and above.
Tasmania has been reported as the highest area suffering from unemployment issue among
all the state and territories. The majority portions of people are jobless because of which the
government is having more number of un-utilize labour, which is most affecting indicator in
the term of economy. (Dejter 2011)

This rate of unemployment at Tasmania till 2012,which is not very much positive in fact it is
giving the warring to take measures for growing rate of unemployment.

SA (South Australia) is also facing the same issue there is no such growth in the investment
and new plans and the inventories are stepping back which leads to the high growth in
unemployed people the region has per month decline of jobs and per month unemployment
numbers are fluctuating from December to January the rate has been turned from 6.6 to 7.2
percent which making the regions condition worst and it alarming time for the government to
improve the structure.

The graph of unemployed people in SA searching for full time job has been illustrated with
the analysis.
After the growth of unemployment in every region in such high rate the government has to
take measures and implemented certain policy to reduce and to eradicate the unemployment
issue.
The primary reason for poverty is no way to work and the larger number of unemployment it
can be said that it is vicious circle of poverty which has become an issue to the country to
maintain it national GDP.('Corrigendum' 2014)

Government policy to reduce unemployment

The two important centres where government has focused are;

Demand policies to eradicate demand scarcity unemployment;

Government has given focus to the Fiscal Policy to reduce the problem of unemployment
through developing the aggregate demand and the rate of growth in economy. This policy
helps by reducing taxes. Other policy named as monetary policy which helps by reducing the
rate of interest and with lower rates the cost of borrowing also decrease('Policy
Developments: Policy Studies Organization Proceedings' 2008).

Supply policies to minimize the structural unemployment.

In supply side policy the government give focus to structural unemployment and to frictional
unemployment. With structural programme the government has provided certain training
based labour and also educational training and in frictional side it provides some basic
computerized information and seeks knowledge and supply accurate information.

Impact of the policy

It has been believed by various economists that unemployment has been caused by reducing
in aggregate demand, so with the fiscal policy the growth in aggregate demand occurs which
leads to the increase in Real GDP in regions economy.

This is the graph for showing the impact of the higher AD on economy which actually helps
to remove unemployment according to the executors of the policy.
However, the government has now turned his focus towards creating addition demand to
reduce unemployment.
With the implementation of monetary policy also with the lower interest rate the economy
can be efficient enough to increase the demand; this is the process through which it is
possible to increase the supply of money.
With the different policy government has tried to reduce the problem of unemployment, and
by implementing these policies it has been analysed that region of Australia overall is coming
out of the problem of unemployment.

Causes of the changes in polices

Though there was an immense effect of the government policies yet there are certain flaws
because of which it has been felt to get changes in the policies to get the better result.
As fiscal policy has the disadvantages that it is based on the other components of AD like as
reducing taxes may not grows the expenses of the people as they can asks for saving with the
perspective of future security. This policy also takes long time to get implemented. Not only
this but if economy is not able to increase the full economy then AD can cause inflation
rather than solving the problem.
However, after reducing the interest rates yet banks are unwilling to lend the expenses then it
will create more issues.

Current policy
Government is now much more concern about the problem each state that is unemployment.
As it has been mention about the particular states like NSW, SA, WA, Tasmania etc. All these
are facing the same problem of unemployment Government has decided to change the policy
and bring some different aspect to reduce the unemployment.
Now with their new policy government has tried to connect with every region and with their
support the step of expanding the workforce and more skilled training to labour etc.

Profits and tax reforms- according to the experts if with a policy it is possible to
minimize the exact value of interest so that it can be possible to developed the

incentives for unemployed to get job.

Improved skills- to give better out come in production which can create more
business and leads to more employment is very much essential. Boosting demand

for both the public and the private sectors.

Encourage ventures- as much the ventures and investment will increase demand
of the labour will increase as for large production large workforce, and large
number of labour required and this will create demand and also producti0on will
help to grow the economy.

Effect of policies
With the rework in the reforms for reducing unemployment there has been a vital change
founded over the economy of the country. Every region or state of Australia has come out of
the suffering and issues. Increase of flexibility and more number of trained employees.
Educational programme has helped people to gain knowledge and to become efficient enough
to get a job. Different funding programme has also organised for childrens services. Increase
in investment has helped to earn more and so on. This policy has start working in positive
aspects. And thisthehope of citizens of every state of Australia that the Government support
will reduce their problems.

 Expected result for every state of Australia.

Every region or state of Australia has been affected with the problem of unemployment but
with the several policy of the government the expectation of every state and region has come
to a conclusion for all issues about employment and poverty. According to the study about the
overall subject it has been clear that the government has start working for her country with
the correct implementation of the policies it will be possible to reach at the goal. Apart from
that the expectations are positive but high in every state of Australia. According to the
analysis it seems that to reach the goal and removing all economical problem and
unemployment will soon possible. (Steedman 2012)

References
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Dejter, Italo J. 2011. 'From The Coxeter Graph To The Klein Graph'. J. Graph Theory 70 (1):
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