Australia’s current economy
Australia’s current economy
Australia’s economic situation has over the period continued to send mixing signals with the future not well defined. This has resulted from the unpredictable ups and down in the different fields of the economy. The overall health of the economy has however continued to declining becoming less promising and hence raising the alarm about the future of the Australia’s economy. Despite the low unemployment rates in Australia’s economy, many of the jobs that have been created are part time jobs hence the accentuating that still, employment is a problem. With the current status of the businesses in the country, Australia’s economy is at a higher risk of the future due to the trends that the Asian century has continued to adapt (Janda, 2017).
Recently, there have been shutdowns of the different car industries in the country which have greatly contributed to the unemployment rate in Australia. These industries include the Ford, Toyota, Holden industries which have resulted to 40,000 people losing employment. This factor has resulted to the lack of well-paid full-time job and has contributed to the increase in the low paying part time jobs. The same risks have continued to emerge from the mining sector, with the demand for the products lowering. This has also posed a threat in the decline of prices of the different commodities in Australia. Being highly dependent on the prices, a decline could result in the reduction of the government revenue, profits, and wages (OECD.2017).
Australia’s property has also faced a declining tendency which has been caused by the reduced demands. Due to the previous progress, there is an increase in the supply level of the commodity and high prices in the property field. However, this progress falls under the risk of falling prices as the demand is not as good. For this reason, many of the construction industries will reduce as there will be no people to go for their property (Lasker, 2017). This is as a result of the high level of unemployment and immigration due to the closure of the different industries. These factors will continue to increase the unemployment rates and contribute to a decline in the economy (Focus Economics 2017).
To improve on these situations, it is important that the government should employ strategies that will improve the economic environment. These include the tax reforms, red tape reforms and the education and training. The quality of workforce in Australia should be improved through the education and training system in order to link the workforce skills with the current and the future needs of the economy (Lannin, 2017). The government should also improve the regulations to create an environment that will attract foreign investors in the country and also minimize the shutdown of the already existing business. The tax reforms in Australia should also be regulated to improve the competitiveness of the Australian economy to the international economy (CPA Australia 2017).
In conclusion, the employment is a major problem in the Australian economy which should be improved through the improvement of the education and training system, tax reform and the red tape reforms to improve the performance of the economy and solve the current employment situation. This will also improve the health of the economy in Australia and also the international performance. With these strategies well implemented, the current and future performance of the economy will continue to improve.
Australia – Economic forecast summary (June 2017) – OECD. (2017). Oecd.org. Retrieved 27 July 2017, from http://www.oecd.org/australia/australia-economic-forecast-summary.htm
Australia Economy – GDP, Inflation, CPI and Interest Rate. (2017). FocusEconomics | Economic Forecasts from the World’s Leading Economists. Retrieved 27 July 2017, from http://www.focus-economics.com/countries/australia
Australia’s economic reform priorities. (2017). http://www.cpaaustralia.com.au. Retrieved 27 July 2017, from https://www.cpaaustralia.com.au/documents/reformpriorities.pdf
Janda, M. (2017). The Murphy’s Law forecast for Australia’s economy in 2017. ABC News. Retrieved 27 July 2017, from http://www.abc.net.au/news/2017-01-06/murphys-law-guide-to-australian-economy/8163918
Lannin, S. (2017). Commodity prices risk slide after 2016 rebound. ABC News. Retrieved 27 July 2017, from http://www.abc.net.au/news/2016-12-21/commodity-prices-set-to-slide-after-2016-rebound/8138408
Lasker, P. (2017). Australian economy faces 2017 challenge with mining bust a long way from over. ABC News. Retrieved 27 July 2017, from http://www.abc.net.au/news/2016-11-30/australian-economy-faces-big-challenges-in-2017/8079750