Australian Unemployment Rate example essay topic
280 words
The main issue that is covered within this article is that the Australian unemployment rate is at its lowest in 13 years. The last time the unemployment rate was this low was in March, 1990. Unemployment dipped from 6.1 to 6 per cent, the lowest rate in 13 years. Despite war, SARS and drought, the economy added 37,200 full-time jobs in May.
Investor borrowing was up 8% in April to a record $6.2 billion, after taking seasonal factors into account, and borrowing for owner occupied homes rose 3.4 per cent. Prime Minister, John Howard commented on the situation in June saying that the unemployment fall meant that for the first time since 1983, Australia's jobless rate was below that of the United States. "That's just another sign of how well the Australian economy is doing in times of increasing adversity", he said. The reserve bank has indicated it believes the domestic economy is healthy and that only dire news from overseas is likely to force a cut in the official interest rates which has been at 4.75 per cent for 12 months however, a softening labour market will lend weight to the case for a modest cut in rates. The cost of boosting the economy now might result in a weaker economy later on and the rate cuts might take longer to appear than current (bond) market pricing allows. The increase in unemployment, especially at this time shows the strength of our labour force.
The reserve bank and the govt. are going to try retain the rate of unemployment through their monetary policy, and will cut interest rates when necessary.
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