Preliminary Economics Skills Shortage Essay

The skills shortage issue in the Australian labour market is very apparent. In any case, the reasons as to why this is occurring always relates to factors of change. These factors of change include; the general economic conditions, conditions in the firms industry, changes in technology, the ageing population, the demand for labour, and the education, skills and experience of workers. The government investigates ways in which they can protect the Australian economy and the Australian workforce. This is done by the analysis of policies that could be put in place. The Budget Speech announced by Wayne Swan includes government policies that can address the issue of the skills shortage in the Australian labour market. Jobs and Skills Expos are held to encourage participation in the workforce.

The forever changing economic conditions influence the employment rate. In a positive economic state, more people are purchasing goods and services, which therefore create more jobs for employees. When there are changes in the demand for labour, fluctuations can occur in the business cycle.

The conditions in the firm’s industry have a significant effect on the success of the firm. The demand increases in industries that sell a product that is highly demanded by consumers. Likewise, the demand will decrease in industries that have low demand for their products.

It is impossible to avoid the effects of the advances in technology. Technological change is well known for making jobs redundant. Many businesses have been positively affected by technological advancement. They are able to replace employees for new and improved data-processing technologies which improve the speed of production. In this case, reducing the requirement for labour benefits employers, while employees lose their jobs. On the other hand, new technologies can provide new job opportunities, with high demand for employees with specific technology skills. Jobs are also commonly known to become redundant due to