analyze the impact of changes in the global economy on the labor market in australia
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7/29/2019 Analyze the Impact of Changes in the Global Economy on the Labor Market in Australia
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Analyze the impact of changes in the global economy on the labor market
in Australia?
Labor markets refer to the sum total of employment opportunities in the various sectors
of a given economy. Like any other country, Australias economy and financial markets,
have not been immune to changes in the world economy. With removal of internationaltrade barriers and increased communication between countries, international economic
integration has increased rapidly. Globalization has slowly moved towards a point
where expect sovereignty the world is interlinked. In addition with the global financial
crisis that occurred in 2008, financial markets collapsed and the global economy
suffered a significant blow. Also the setting up of industries and development of the
East Asian countries has generated wealth and created jobs in the global economy. The
Australian labor market is extremely dynamic and has significantly been affected by the
above changes in the economy.
Globalization has had an impact on the changing patterns of labor in Australias labor
market, increasing the overall welfare of the economy. It refers to the removal of
national barriers and an increase in international trade and communication betweencountries. Increasing globalisation has come about due to the easing of policy barriers to
trade and from technical change. These have lowered the costs of trade and factor flows.
In recent years global trading has escalated as globalization has made it easer to move
goods and capitals for countries. This has changed the Australian global market with the
addition of a new sector and information services and research and development
becoming more and more important. Australias tourism industry has in particular
benefited from globalization as more people are travelling around the world. This has
created more jobs and investment in service industry.
1. The substitution of labour for capital and technology in
industrialised countries (which helps skilled workers but not the
unskilled).
2. The effect of 'outsourcing' to low wage countries. Production
process require far less number of people which has caused a
decline of number of people needed to do the job in the
process.
3. Re-location of firms from high wage to low wage countries.
The Global Financial crisis caused a subsequent downturn in the Australian
economy having a negative impact on the labor force.
The development and industrialization of East Asia has triggered a demand for
industrial materials and resources and had a major impact on Australias labor market,
particularly in the mining sector. Over the years manufacturing has shifted to these
countries. General motors bring its vehicles from Korea. It has resulted in high prices for
Australias commodities and food exports as well as a high exchange rate. Australias
resources sector has had a rapid expansion. There has been an increase in Australians
propensity to buy assests especially houses. There is ongoing growth and demand for
services as incomes grow and population ages. High cost of labor in Australia. Like other
developing countires Australia has lost its manufacturing sector due to higher cost of
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production. Very recently Ford has announced that that it will cease to produce in
Australia. They have moved their manufacturing from Australia. Even countries from
financial sector are outsourcing their work from overseas to save on their costs. It is
estimated that it is 4 times more expensive to manufacture in Australia than in Europe.
50 years ago there were economic and geographical boundaries. Gradually with passage
of time, trade barriers were eliminated and globalization took place.
Financial insitution went overboard
Impact of GFC
- financial instiuation couldnt meet their commitments and there was loss ofconfidence with people becoming conservative. No one knew what was the
stitution. The whole financial market came to a standstill.
In 2008 the government gave money to certain workers to sustain the businesses.
Government spent 2.5 million dollars on an insulation programme, giving free
insulation, to give jobs to so many people. Schools were given large sums of money.
Introduction
- Define labor markets and Australian labour market. It is important tounderstand Australias labour market. What is the break down of Australias
labour market and figures of employment in sectors. .
- World economy- Globalization. Definition. Transition in the past 50 years.- Recent changes in world economy- GFC. How it triggered? What it is?- Industrialisation of East Asia.
A classic example of changes in the world economy has occurred in the past decade.Australian labour market is the
Industrialization generates wealth and creates job opportunities
Like any other country Australias economy as well as financial markets, have not been
immune to changes in the world economy. Good management of a countries economy
can stil ensure safety.
Government became very liberal and banks went overboard since economy was doing
so well.
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