The article in particular, focuses on subsequent weaknesses in the Australian labor market and its ability to recover from initial slides at the start of 2015 and also after the Global Financial Crisis. This is substantiated by backward trends in employment throughout the second half of 2015 and a steady unemployment rate. These respective macro economical factors are independent of global trends and also have an influence on Australian markets. There is already a distinct correlation between trends in Australian and American markets however more domestic trends are influenced by such data as employment and unemployment rates and respective developments in labor markets.
The Australian labor markets generate significant revenue for the Australian economy. Such labor markets as the Australian car industry and farming allow Australia to import and export goods and services to foreign industries and nations and this in turn, allows the Australian economy to continue developing and receiving significant revenue. When declines are experienced in these respective fields, less money is received by Australian industries and they are unable to further support the Australian economy (Mitchell, 2015). Furthermore, such industries as Australia’s lucrative gold and silver mines also provide substantial revenue however once again, if there are failures in the number of items imported or exported, then less revenue is generated and Australian markets decrease in value. For example, foreign investors may be particularly interested in Australian mining stocks such as BHP Billiton however if they fail to perform with respect to selling and purchasing gold, silver and other vital metals, then less interest results and money is subsequently lost.
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One economic issue raised in the article is employment and how it impacts the Australian economy. Employment is particularly pertinent to economists as it has a large impact on the ability of a nation to prosper. When employment rates increase, then growth is occurring in respective national markets and it can be proven that money will be further added to the economy. Greater employment rates reduce the level of welfare in the nation and the government can spend less money on welfare and more on its respective economy and businesses that need the funds to prosper and to further support the nation. Employment rates also relate to unemployment rates. As employment rates increase, unemployment rates will invariably decrease and this can provide some crucial information on whether the economy is improving or going backwards. Employment is so influential as business confidence can be restored when employment rates increase and there are more people in the workforce and a higher chance that people are going to be paid and be able to support their respective families and loved ones (Mitchell, 2015).
I benefited from reading the article by further understanding how significant economical factors such as employment and labor can have such an influential impact on world economies other than the United States. In this case, the Australian economy is struggling to prosper as employment rates decrease and unemployment rates remain relatively stable. There is limited business confidence in the Australian economy and this demonstrates how world economies can also be fickle and hard to stabilize (Mitchell, 2015). The article provides a normative perspective on world economies and trends in employment rates across Australia and the United States. It further substantiated my normative position on the topic and the fact that economic factors such as employment rates affect any economy irrespective of their businesses and industries. The article provides a very reliable and accurate portrayal of the economic position in Australia as it supports recent declines in Australian markets and the trend between improving American performance and decreasing Australian performance with regards to stock markets.
