Booklet 5: Unemployment

Q: What is an unemployed person?

A: A person aged 15–65 with no job, actively looking for work, and able to start work in the survey week.

Q: What is the labour force?

A: People aged 15 years or over who are willing and able to work.

Q: What is underemployment?

A: When people work part-time or casual jobs but would prefer to work more hours. Not counted as unemployed.

Q: What was Australia’s unemployment rate as of Sept 2025?

A: 3.9%

Q: What was Australia’s underemployment rate as of Sept 2025?

A: 6.4%

Q: What is long-term unemployment?

A: When someone has been unemployed for 12 months or longer, often due to structural changes in the economy.

Q: Why is long-term unemployment hard to recover from?

A:

• Skills become outdated

• Employers look less favourably on long-term unemployed individuals

Q: What are the effects of unemployment on an individual?

A:

• Loss of income → rely on JobSeeker ($390.55/week)

• Poverty, poor housing, and nutrition

• Low self-esteem and mental health issues

• May turn to alcohol/drugs or crime

Q: What are the effects of unemployment on society?

A:

• Family breakdowns and higher divorce rates

• Disconnection from community

• Income inequality increases

• Rise in homelessness

Q: What are the effects of unemployment on the government?

A:

• Less production and economic growth

• Lower income and GST tax revenue

• Higher welfare payments

• Less money for services like education and health

Q: What is cyclical unemployment?

A: Unemployment caused by a downturn in the business cycle — when spending and production fall, leading to job losses.
Example: People lose jobs during a recession.

Q: What is structural unemployment?

A: When workers’ skills don’t match the jobs available due to changes in technology or the economy.
Example: Factory workers replaced by machines.

Q: What is frictional unemployment?

A: Short-term unemployment that happens when people are between jobs or entering the workforce.
Example: A graduate looking for their first job.

Q: What is seasonal unemployment?

A: When people are unemployed at certain times of the year because their work depends on the season.
Example: Fruit pickers or ski instructors.

Q: What is hardcore unemployment?

A: Long-term unemployment due to personal characteristics that make people hard to employ (e.g., lack of skills, poor attitude, health issues).

Q: What is hidden unemployment?

A: People who have stopped looking for work and are not counted in unemployment statistics, even though they want a job.