Unit 1
Unit 2
Population and Employment
The graph below shows that the unemployment rate in Australia has been falling for many years. In fact, in the early 1990s the unemployment rate in this country peaked at just over 11.0%. Strong economic conditions since that time have ensured that the positive trend seen in employment has continued for an extended period.
Since 2001 the unemployment rate has fallen from 6.6% to 4.3%. This impressive figure has been achieved due to a combination of positive supply and demand figures. The huge economic expansion experienced by China has increased their demand for fuel and raw materials. As a leading supplier of natural gas, iron ore and coal, the Australian economy was well positioned to take advantage of this situation. An increase in the demand for our exports is one of the factors that is helping to ensure that our unemployment rate has fallen.
There are also positive supply side conditions that are assisting in this process. The demand for our exports has resulted in an appreciation of the dollar, and this has made it cheaper to buy some of the raw materials used in the production process. Although interest rates increased in 2006, they were still relatively low by historical standards. By early 2009 interest rates had fallen dramatically. And the growth in wages has been restrained due to changes in the laws which govern the labour market. All of these factors have allowed some costs for businesses to remain stable, and this has encouraged job creation.
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