Unemployment Benefits And Minimum Wage Essay


Discuss about the Unemployment Benefits and Minimum Wage.


The Australian government did not expect the current surge in the unemployment rate in Queensland. The rate has been described from two fronts, the seasonal changes and the common trends. Currently the rate stands at 6.2% which is a steady growth over the last few months. Unfortunately, the seasonal changes in the year drastically shift the percentage rates to almost 7%. In a bid to avert these worrying statistics, the Australian premier is determined to create more jobs. In the year 2015, close to 60,000 jobs were created but the problem has not been contained yet. Amongst the jobs, we have those that accommodate the full timers and the part timers. (O’Leary, 2015)

Types of Unemployment

There are four types of unemployment in Queensland and they include cyclical, seasonal, frictional and structural unemployment. Structural unemployment entails the element of demand in the markets especially labor. For instance, when customers’ preference for a certain item shifts, labor will be limited. Cyclical unemployment is caused by a reduction in the GDP. When the economy is not doing well, the production sectors are paralyzed hence limiting the demand for workers. Seasonal unemployment is closely associated with structural unemployment in that the seasonal changes in the demand of goods affects the demand for labor. Lastly, frictional unemployment is the period that a person stays away from work as they change from one station to another. (Maier, 2014)

Unemployment Issue

Unemployment is a factor that has adverse effects on the lifestyles of individuals and the economy at large. For instance, unemployed people in Queensland do not have the purchasing power to buy goods. Consequently, the demand for them is reduced thus the Australian economic growth rate is undermined. The government revenue agencies also collect very little in terms of taxes resulting to poor infrastructural developments. Unemployment breeds social vices such as crime which is an attempt by people to get out of the devastating conditions. (Welch, 2009)

Government Policy on Unemployment in Queensland

The Australian government has witnessed very high unemployment rates in the early 20th century that shot to uncontrollable levels. This forced the government to design appropriate measures to curb the menace in the future. More specifically, Australia has come up with monetary and fiscal measures to eradicate the problem. For the case of Queensland, the government has imposed a minimum wage bill so that employers can e able to hire workers whom they can comfortably pay. Another strategy is that the government is providing incentives to the unemployed people especially the youth. (Engbersen, 2006)

Unemployment and inflation can be represented on the Philip’s curve on the X and Y axis respectively. The relationship between the two variables is inverse, such that when one item goes higher, the other one is reduced. Government institutions have a mandate to engage policies that will regulate this state of affairs and they include the central banks.


Engbersen, G., 2006, Cultures of Unemployment: A Comparative Look at Long-Term Unemployment and Urban Poverty, USA, Amsterdam University Press

Maier, M.H., 2014, Introducing Economics: A Critical Guide for Teaching: A Critical Guide for Teaching, UK, Routledge

O’Leary, D., 2015, Unemployment Benefits and the Minimum Wage: Enterprise resource planning adoption and satisfaction determinants, New York Times

Welch, P.J., 2009, Economics: Theory and Practice, USA, John Wiley & Sons

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