Australian unemployment falls to 5.8%

Unemployment in Australia, which had seemed to be heading well above the full employment level has shown encouraging signs over the last few months. It has now fallen from a peak of 6.4% last year to 5.8%.

The rise in unemployment was expected due to the ending of the mining investment boom, and the recovery is attributed to the expansionary monetary policy and the depreciation of the dollar.

VCE students need to know how all of the key economic indicators have moved over the previous four years (from 2013 for the current Year 12's). In particular VCE students should know the demand and supply side factors which have influenced each variable and the policy responses (budgetary, monetary and supply-side) these have prompted.

Below is an article from The Guardian which analyses recent trends. It also examines what full employment might mean and whether it is worth pursuing as an economic policy goal.

The Guardian article is here

While this post focuses on Australian Unemployment and the needs of tackling VCE it is also useful for IB students. Consider the impact of different factors of unemployment and how economies are interdependent.