Solution
David answered on
Dec 27 2019
Running Head: Unemployment and wage issues in regional Australia
1
6
Unemployment and wage issues in regional Australia
Studentโs Name
University
Introduction
The problems in regional areas of Australia are mainly due to the limited opportunities to work leading to higher unemployment rate. The disadvantaged groups at regional level can be small which should not discourage policy makers to promote better job opportunities even in such areas. The problems with the government policies of Australia to address the regional issues related to unemployment and discrimination over wages is that they consider it to be less effective investment opportunity. The regional balance in u
an and rural areas is outweighed by the disadvantaged groups due to higher unemployment issues as well as labor market frictions. In the paper, the figure will be shown for the regions and areas in the country having unemployment rate of around 5 per cent or even more than that. Also, government initiatives to tackle such employment issues are also analysed and their benefits so far will also be measured on few parameters of accomplishments.
Regional employability and labour market issues
Due to changes in both supply and demand forces in labour market, there have been wide fluctuations in the conditions of employability as well as wage rates. Constant changes at national as well as international level in the demand conditions of labour set up new pathways for future course of development. In Australia, the employability conditions in smaller regions are dependent over one or two industries which harshly affect the wage rates in case it winds up in long run. For instance, in regions of Inner subu
s of Northern Melbourne, most of the job opportunities arise because of focus over steel and textiles, footwear and clothing industries. Similarly, in the regional areas of Tennant Creek, the existing labor force is only around 1500 and due to rising opportunities to work in u
an areas, the reduction in the availability of the labour force
ings down by 200 in a week (G-20, 2015).
Although there have been revival in the policies of employment in Federal and State regional development, still there is lack of accessibility to the employment situation and provision of services. It can be taken into positive sense that government has been taking initiatives for promoting regional programmes of development in such areas. The variation in the policy sensitivity is required to be developed through recognition of the sub-regional promotional policies as many people are not aware about such programs. It requires addressing these issues of sensitive analysis to
ing a sense of responsibility among residents so that they can relate the problem with their home. One of the major issues with the state policies is that they are not able to provide right balance of education and skill development such local and regional areas. Young people who are not able to attain education to higher levels must be provided with the skill generation opportunities so that they can rejuvenate their potential with the positive notion of achievement. Regional and local policies will be of no use in case of aggregating the data over large scale parameters. The management of the problems and the regional issues should be addressed right from the roots even if it requires creating minute policies on large scale (Report, 2007).
Applying the economic theory over the regional employment issues, it can be recognized that the supply of labour in such regional level is less than that of demand in the labour market. The large number of people available for work is because they are able to learn the low-level skills requiring minimum of education background from each other and they become specialize in their field. On the other hand, the demand for labour force in these regional areas is limited because of less industrial development which results into reduction in the market wage rates for unorganized sector with lower skill position. Even if the main targets of the government policy programs is to reach even at smaller regions, there are still problems in setting up the criteria for funding as it excludes the concentrated pockets of development. The lack of understanding between the existence of extremes between the advantaged and the disadvantaged groups in lower segment areas further aggravates the problem of labour market. The development can be seen in only couple of streets in inner regions of the city which can be separated from that of well-off areas of u
an regions. It clearly shows the disappointment level from the local and regional policies of development which can be improved by revising the policy matters in more intense form. It can be verified from the cu
ent instance in the outskirts region of Sydney where few of the pockets provides the facility of public housing through municipality while in these regions of CampbellTown, other kinds of services do not fall under the funding of additional programs having similar kinds of needs. It means that families residing in these pockets are facing the regional disadvantage problems because of far off local markets due to poor connectivity, inadequate public transport, minimal level of privacy, frequent callouts of local police and fraught attitude of the school teachers. All these factors clearly reveal the position of the regional policies which cannot even help to
ing down the unemployment level and raise the minimum market wage rates (Release, Report, Statement, & Australia, 2017).
dd
ss
Wage rate
Ssโ
w
W*
Employment
E*
E
Figure 1: Showing effect of subsidies to young people in regional areas
It can be recommended that providing subsidies to the youth of the country should be done to help them initially in achieving the survival conditions up to certain extent. Gradually, these subsidies should be restricted by the government so that youngsters donโt become dependent over these facilities of subsidies. Understanding the labor demand and supply diagram in case of subsidies, it can be analysed that subsidy provision will shift the labour supply...