Question

The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million. Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.

Calculate Australia’s labor force and the number of people in the civilian population who were not in the labor force? Also, with examples examine the causes of structural unemployment in Australia?

Answer 1

Labor Force= Number of Employed+ Number of Unemployed

= 13.5+0.7

= 14.2

Hence, total labor force in Australia is 14.2 million.

Number of people in the civilian population who are not in the labor force

= Total civilian population- Labor Force

= 20.8- 14.2

= 6.6

Hence, number of people in the civilian population in Australia who are not in the labor force is 6.6 million.

Structural unemployment occurs in an economy when there is a mismatch between the supply and demand for labor.

Following are some of the causes of structural unemployment in Australia:

level of unemployment benefits being high influencing people not to search for a job more actively.

growing popularity of part time jobs

the presence of minimum wage law in Australia.