Australia 2014 Budget & impact on Employment rate

Assignment Requirements

 
This essay is a group assignment and my group mate has written the first part which includes introduction, unemployment statistics and effect of the 2014 Budget. She has made very briefly theories suggestion in expansion to what she has written so far ( look into chapter 13 lecture notes on structure and clinical unemployment ). She suggest me argue our opinions based on what she has written so far and try to find journals and references to support it.

I will have the assignment criteria and the introduction uploaded in a minute. Thank you!

Australia 2014 Budget & impact on Employment rate

Introduction

This paper discusses the unemployment trend over recent years and predicament for the future of Australia’s employment rate, the latest Australia 2014 budget and its long term impact.

 

( requires 300words )

 

 

Australia Unemployment Statistics and Recent Trend

 

According to the Australian Bureau of Statistics, the national unemployment rate rose to 6% in January 2014, a level last recorded in July

2003, surpassing a peak of 5.9% reached in 2009 during the global financial crisis. Latest rate reported in April 2014 indicates this high record had been slightly adjusted but remains high at 5.8%. Such volatility had already been recorded in recent years. Since 2012, Australia had experienced a steady decline in employment to population ratio.The current employment to population ratio is 60.9% compared to 61.5% in 2012. ( ref: Australian Bureau of Statistics )

 

Tables provided by Australian Bureau of Statistics

 

The strength of the Australia economy and employment rate has been in the limelight ever since major employment contributors announced their plans of departing the country. Ford Motor Co. and General Motors Co. announced in 2013its departures in the next few years, a possible impact of few thousand work losses in the auto manufacturing industry. In February 2014, Toyota Motor Corp. announced it would stop producing cars in Australia in 2017, removing a possible 2,500 jobs from the same sector.

 

Other major industries had also indicated similar trend. Flag carrier Qantas Airways Ltd. said in early 2014 that in order to cope with losses, it would cut 1,000 jobs over the next few quarters. The once-booming resources sector have also lost jobs as companies adjusted to lower commodity prices. Coal-rich Queensland alone lost nearly 12,000 jobs in January 2014, according to the Australian Bureau of Statistics.

 

These job losses across major sectors such as the mining, auto manufacturing and the airline industry, is expected to have significant negative impact on the national employment rate in Australia in coming years and probably ripple into the country’s future economy.

 

The 2014 Australia Budget and Effect

The Australian government is taking considerable measures to cope with the country’s possible weakening economy. It is anticipating the unemployment rate to continue to raise and possible slowing economy growth for the country. According to the first 2014 budget statement released by the Australian government, the budget has been set in the context of slightly below trend growth for the Australian economy and the expectation that unemployment will remain elevated. Investment in resources projects is still expected to fall and to detract significantly from growth. Resources exports will rise as completed projects come on line, while the household sector will strengthen as it responds to low interest rates ( Reference : http://www.budget.gov.au/2014-15/content/bp1/html/bp1_bst1-01.htm ). Various tight measures have been introduced such as requiring young people to be earning, learning or participating in Work for the Dole. Pension age will be increased to 67 by 1 July 2023, and further increased to 70 by 1 July 2035. Incentives will be provided to businesses to employ Australians over the age of 50 through the new Restart programme. In the current Australia government’s opinion, these measures are part of the strategy to repair the budget and build a stronger economy for the country.

The general public have reacted actively ever since the release of the 2014 budget. Young people are unhappy with the distinct changes in the unemployment benefits and the higher tuition fees in higher education in years to come. Thousand of student protestors walked the street across the country expressing their unhappiness against proposed changes to education funding. Demonstrators had also gathered in Melbourne, Brisbane, Adelaide and Perth to protest against what had been viewed as harsh and unjust policy. Clearly, the possible future of Australia’s economy, employment and benefits are at stake of the 2014 budget. Education, unemployment benefits and retirement are all crucial inter-related issues that will leave long-term effect on the country’s economy and employment opportunities. These uncertainties and lack of support from the population to the government’s own opinionated efforts may further shaken the confidence of major investors across all industries. It may bring further negative impact on the already weakening employment rate. While the impact of the 2014 budget measures is still unknown, the unsupportive reaction from the public will leave stronger impression to major investors should the situation be prolonged.

 

My theories suggestions:

The departure of major employers may result in structural unemployment as many skilled workers ( eg the auto motor industry ) will be out of job with no other skills. Unsupportive public will result in more uncertainties and then influence the confidence of employers. The 2014 budget measures in relation to employment (that i have mentioned above ) will all have long term effect on the employment trend.

( look into chapter 13 about structure unemployment and clinical unemployment )

 

Conclusion

( 200 words needed )

 

References

 

Australian Bureau of Statistics:

http://www.abs.gov.au/ausstats/[email protected]/Latestproducts/6202.0Main%20Features2Apr%202014?opendocument&tabname=Summary&prodno=6202.0&issue=Apr%202014&num=&view=

 

Offical 2014 Budget statement:

http://www.budget.gov.au/2014-15/content/bp1/html/index.htm

 

Order Now

http://zelessaywritings.com/order/

 

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.

 

[order_calculator]