Labour Market and Unemployment – Video Notes

A comprehensive set of vocabulary flashcards covering key labour market concepts, indicators, unemployment types, and government policy responses from the video notes.

Full employment (Australia)

Goal to achieve unemployment at the NAIRU level (approximately 4–4.5%), with no cyclical unemployment; some natural unemployment tolerated; 2023 aim to ensure anyone who wants a job can get one with good pay and conditions.

NAIRU

Non-Accelerating Inflation Rate of Unemployment—the lowest unemployment rate possible before inflation begins to accelerate; also called the natural rate of unemployment.

Unemployment rate

Percentage of the labour force that is unemployed: (number unemployed ÷ labour force) × 100.

Labour force

All people over age 15 who are willing and able to work; Labour Force = Employed + Unemployed.

Employed

Person over the age of 15 working for more than one hour per week.

Unemployed

Person over the age of 15 without employment (often not working any hours) and actively looking for work.

Labour Force Survey (LFS)

Australia's official monthly measure of employment and unemployment; collected via a household survey of around 70 questions.

Participation rate

Percentage of the population aged 15+ that is in the labour force: (Labour Force ÷ Population 15+) × 100.

Underemployment

Being employed but would like more hours; also referred to as disguised unemployment when not working to capacity.

Underutilisation rate

Share of the labour force not working at capacity: (Unemployed + Underemployed) ÷ Labour Force × 100.

Hidden unemployment

People who would like to work but have stopped actively seeking work and are not counted in unemployment statistics.

Cyclical unemployment

Unemployment caused by insufficient aggregate demand (downturns in the business cycle).

Structural unemployment

Unemployment due to a mismatch between workers’ skills and those required by industry (changes in technology, policy, etc.).

Seasonal unemployment

Unemployment due to seasonal patterns in job demand or skills required at certain times of the year.

Frictional unemployment

Unemployment during the transition between jobs or when entering the labour market.

Hard core unemployment

Unemployment due to persistent personal characteristics that prevent job offers (e.g., legal, health, or behavioral factors).

Long-term unemployment

Unemployment that has persisted for an extended period, typically over 12 months.

Budgetary policy

Fiscal policy using tax changes and government spending to influence aggregate demand and unemployment.

Monetary policy

Policy by the central bank (RBA) adjusting interest rates to influence borrowing, spending, and inflation.

Priority Hiring Incentive

Payment to employers for hiring Australian Apprentices in eligible occupations; up to $5,000 in the first year, paid in two installments.

Skill shortages

When employers cannot fill vacancies due to a lack of suitably skilled workers; caused by global shifts, retirements, regional gaps, etc.

Skills Priority List

List of occupations and qualifications eligible for incentives to address skill shortages.

Immigration policy

Policy setting migration program planning levels (e.g., 185,000 places for 2024–25) to fill skill shortages and boost labour force; supports regional work and skills.

Fee-Free TAFE

Government-funded training places (TAFE/VET) aimed at increasing skilled workers, with priority sectors and thousands of places.