3.4 Unemployment Levels

Question 1

what is the unemployment rate

Answer 1

The number of unemployed persons divided by the number of people in the labour force​

Australia’s unemployment rate is 3.7% at the moment.​

Question 2

Introduction of unemployment

Answer 2

Unemployment is an important indicator of economic performance.​

It affects the level of wages paid and therefore, consumer spending, economic growth and standard of living.

Question 3

Traits of an unemployed person

Answer 3

Aged 15 years or over​

Not employed​

Taking active steps to find work​

Available to start work

Question 4

costs of high unemployment levels

Answer 4

Income tax revenue falls ​

Government expenses rise​

Increased rates of crime, family breakdown and regional decay​

Wasted labour resources​

Individual costs​

Question 5

Outline two reasons why the youth unemployment rate is higher than the general unemployment rate.

Answer 5

Any of the two below (need to elaborate on the chosen reasons):

Fewer skills

Less experience

More likely to be working in the retail or service sectors

Tend to be hired for the least amount of time and often as part-time workers

Question 6

what type of unemployment would young people most likely experience

Answer 6

Frictional unemployment which occurs when a person transitions from one job to the next or from one life situation to another.

Question 7

Experience the difference between unemployment and underemployment

Answer 7

Unemployment is when you are taking active steps to find work but cannot find employment. Underemployment is being employed but not being able to work as much as you would like to or being overqualified for the job you are doing.