Unemployment is a serious issue within any economy, becoming arguably the most measured and discussed economic indicator. Unemployment is best described as "when a person who is actively searching for employment is unable to find work." (Investopedia, 2010). Unemployment, particularly the unemployment rate, is often the most cited measure of the health of the economy. This response will examine the different types of unemployment present within the Australian economy, outline how unemployment is measured and will discuss Australia's recent record with unemployment.
Richardson (2006) argues, "Unemployment is not a precise concept. This is true even in countries, such as Australia, where most production of goods and services is done through the formal economy, and most people work for wages." To get the most accurate calculation of unemployment possible, a division of the Australian Government – the Australian Bureau of Statistics - adopts the standard international definition of unemployment as described by the International Labour Organisation (2014): "people are unemployed if they did not work for at least one (paid) hour in the previous week, were actively seeking work and were able to accept a job in the next week if it were available, and that they are over the age of fifteen." The definition makes it clear where the imprecisions arise. The Australian Bureau of Statistics (ABS) conducts a monthly Labour Force Survey. This household survey is designed to produce key estimates of unemployment (and employment) from a sample of approximately 56,000 people. This is how unemployment is measured in Australia.
Unemployment, though seemingly simple, is not just a tick in a box if you're not currently working. For statistics to be even more precise, unemployment in Australia is categorized into seven different types; structural, cyclical, frictional, hidden, seasonal, long-term and hard-core.
