The Australian government is doing everything in its power to drive down spending in 2019. Australia has always had a good record in terms of economic matters. A low debt of 40% of GDP, low unemployment, and growth of 3% in 2017 that most nations under the Eurozone can only dream of.
Unfortunately, the good old days seem a distant memory as the debt has risen and the government presents deficit budgets. Those in power are stepping up measures to limit spending and which includes reducing the number of people in the service sector which had no doubt raised the unemployment rate in the country.
Registered Unemployment Rate
In 2012, the country posted an unemployment rate of 4.9% which took economist who had predicted a rate of 5.3% by surprise. The state of Western Australia, home to much of the country’s mineral resources, had an unemployment rate of 3.8%. Eastern states, on the other hand, were benefiting from the strength of the Australian dollar, which is weighing on the tourism and manufacturing industries.
However, it should be noted that this was recorded in a period where the mining sector was in full swing and the commodity sector benefitting from the Chinese Long-term Partnership. Fast track to 2019, the figures have risen to 5.2% which is still commendable when compared with that of other nations.
The Present Unemployment Trend
The Australian economy has benefited for several years from strong demand from emerging countries for raw materials of which it is a major producer and exporter. It is the only major country under the western zone to have escaped recession in 2008, thanks to the policies of the then administration.
Since the decline of the employment rate, job participation rate – which refer to the proportion of people doing or seeking for job has declined, as has the number of full-time jobs. This drop in numbers depicts that a majority of the working force are either not interested in working or discouraged from doing so due to the state of the economy.
The Numbers are far commendable when compared with that of Nations like South Africa, France, and Spain. For a country who use to be the perfect example of a nation with a buoyant economy, 5.2% unemployment rate recorded in April 2019 (highest since the turn of the year) is underwhelming
In 2019, the rate of full-time unemployment have declined while part-time employment had increased. In previous years the reverse was the case. Hence, there seems to be little or no job security in the present workforce. From June 2018, to June this year, the country had seen an increase in unemployment rate by over 300,000 which is the highest recorded within a period of 12 months.
The decrease in the employment rate ironically contrasts with the hiring rate which remains strong throughout the year. From March, hiring rate has steadied at 28,400 which is almost double the figures expected by Economic analyst. While this contrasting figures were hard to explain at first, consequent studies shows that this was as a result of fall in full-time employment.