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Economics

Home > Economics > Economic issues > Economic issues in the Australian economy - Unemployment

Activity 3

1. True. The total growth of jobs in the labour market is closely linked to the level of economic activity in the total economy.

2. True. According to Australian Bureau of Statistics (ABS) definition of the labour force.

3. False. In booms economic growth increases as production, incomes and consumption rise and unemployment rates fall. However, an increase in the participation rate as more people enter the workforce may mean little or no change in the unemployment rate. This occurred in May 2002 when employment increased by 44 400 and unemployment remained unchanged at 6.3%.

4. True. Structural unemployment can also be caused by other issues related to the labour market such as the displacement of workers by advances in technology.

5. False. The labour force participation rate (LFPR) is the labour force expressed as percentage of the working age population (civilian population aged 15 years and over).

6. True. The rate of unemployment includes those who are catagorised as frictionally, structurally and seasonally unemployed, as well as the hard-core unemployed.

7. False. The ABS defines the unemployed as persons aged 15 years and over who were not employed during a surveyed week (reference week), and had actively looked for full-time or part-time work at any time in the four weeks up to the end of the reference week.

8. False. To be an employed person you have to be 15 years of age or over and during the reference week:

   • worked for one hour or more for pay, profit, commission or payment in kind in a job or business, or on a farm
   • worked for one hour or more without pay in a family business or on a farm
   • have a job but were not at work due to illness or leave.
   
   
   

9. False. The natural rate of unemployment occurs when there is full employment in the economy (demand and supply for labour are in equilibrium). The natural rate of unemployment is a socially accepted measure and only includes frictional, structural, seasonal and hard-core unemployment. Cyclical unemployment is not included.

10. True. The long-term unemployed do not always have the skills to match job vacancies.

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