The economic analysis between Australia and Singapore

Document Type:Essay

Subject Area:Economics

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Hence, natural unemployment can be considered as that situation when employees keep moving from one job to another seeking to have better pay and better conditions. This form of unemployment differ from one country to another since countries experience different economic factors. This paper endeavor to evaluate and distinguish the natural rate of unemployment between Australia and Singapore. Why the natural rate of unemployment differs between Singapore and Australia The Australian economy has proven to be continuously improving and featured with the low unemployment rate. This country has been able to contain inflation for over 100 years with very low public debt1. 6 % as exemplified by its 2004, and 2007 financial years5. On the other hand, while Singapore depends much on the sectors above, Australia depends much on the service sector even though the other parts of its economy depends on the manufacturing industry as well.

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Also, the service sector in this country marked over 70 % of its GDP and 75 % of the jobs for the citizens of the country6. Hence, the rate of unemployment in Australia is limited compared to that of Singapore. Australia was not affected by the 2009 global financial crisis since its banking system had been strong, and the rate of inflation in this country has been under control in the financial sector7. For example, this country possesses a bilateral trade contract between Chile, Malaysia, Singapore, and Thailand among other states. It has also opted for negotiations for an agreement between China, the US, Japan, Indonesia, and the Republic of Korea. Therefore, Australia has facilitated many opportunities for its citizens such that they can work globally or locally, thus, reducing unemployment.

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The Trans-pacific partnership between Australia and Canada, Chile, Peru, and Vietnam resulted in an increase in unemployment by approximately 8%11. The country has also enhanced a trade agreement with other countries over the last four decades, and this action has significantly reduced an unemployment rate. However, many limitations established in the immigration department are always introduced leading to a consistent decline in population. Long term structural unemployment keeps on rising despite the improvement in performance in its economy13. On the other hand, Singapore is recovering from the financial crisis and its economy is drastically increasing in different sectors. New opportunities are established to restore the country’s economy, and this has led to an increase in demand for new skills. Workers keep shifting from their current positions seeking to offer labor in the new fields because of supposedly better working terms.

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The unemployment rate is a term that is used to describe the percentage of the unemployed individuals in the same labour markets. Unemployment is mainly caused by weak economic status which is unable to observe investors. Also, the high population rate is among the cases where the available jobs are fewer compared to the workforce available. The major types of the unemployment are cyclical, structural, and frictional unemployment. Diagram 1, 2 and 3 shows the marginal product of labour, supply and demand of labour diagram regarding unemployment in Australia and Singapore16. The country focuses on the primary economic activities and expands on them rather than replacing them. Structural Unemployment occurs when the available workforce is not fit for the open job in the labour market.

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This type of unemployment comes as a result of the job seeker not having the required skills that are in demand. The leading causes of this type of unemployment are the declining of the industries sizes and the increased use of technology advancement. As a result, many people lose their employment and are not able to secure other jobs in the market. The difference in the rate of unemployment between these two countries is minimal since it is only based on factors such as the population and the rate of economic growth. Also, these countries face different types of unemployment, but each of them seeks to overcome them by creating more opportunities both locally and globally. References "Australia Rate of Natural Increase, 1950-2017 - Knoema.

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