Key Definitions
What is the definition of the term employed in the Australian labour market?
Someone aged 15+ who worked at least 1 hour for pay or profit in the past week.
If the labour force is 14 million and the working-age population is 20 million, what is the participation rate?
70%
What type of unemployment is caused by an economic downturn?
Cyclical
Define the term workforce
All people employed or actively seeking work aged 15 and over
Name two factors that can cause income differences between individuals.
Occupation, gender, age, cultural background, experience
What is the formula to calculate the participation rate?
(Labour force ÷ Working-age population) × 100
Using ABS data, what is the current national participation rate (approx. May–June 2025)?
Approx. 66%
Give an example of frictional unemployment
A recent graduate searching for their first job
Name two social or economic factors that increase the participation rate
Childcare support, education access, improved job availability
What is the current national gender pay gap in Australia?
11.9%
Define hidden unemployment and give one reason it occurs
People not actively seeking work but who would work if a job became available and may stop applying due to repeated failure
In May 2025, the employment-to-population ratio was 64.3%. What does this indicate about the economy?
A relatively high portion of the working-age population is employed
Which type of unemployment occurs when workers’ skills no longer match the job market?
Structural
Why might participation rates differ between men and women?
Childcare responsibilities, societal expectations, or job flexibility
What industry show the largest gender wage gaps? and What is the wage gap in this industry?
Finance. Wage gap is 22.3%, with women earning 78 cents for every dollar men earn.
What is the unemployment rate formula?
(Unemployed ÷ Labour force) × 100
If Country X has a participation rate of 66%, Country Y 72%, and Country Z 64%, which country is likely to have the strongest labour market? Why?
Country Y, more of its population is engaged in the workforce
A ski resort laying off workers in summer is an example of what unemployment type?
Seasonal
Which state or region had the highest unemployment rate recently, and why?
Outback QLD, due to remoteness, industry reliance
What are two barriers to income equality faced by Indigenous Australians in the public sector?
Discrimination, geographic isolation, lack of education access
Who is not considered part of the labour force?
People under 15, full-time students not working, retirees, and people not seeking work
A country has 950,000 unemployed people and 12.55 million employed. What is its unemployment rate?
Labour force = 13.5 million; Unemployment rate = (950,000 ÷ 13.5M) × 100 = 7.0%
Explain why a low unemployment rate can still hide labour market problems
It doesn’t account for underemployment or hidden unemployment
Propose one government strategy to increase youth participation in the workforce. Explain why?
Apprenticeship incentives, skills training, tax subsidies
In your own words, explain how the concept of equity might conflict with efficiency in labour market reforms.
Equity aims to ensure fairness, efficiency aims to maximise productivity. Sometimes reforms that improve one may reduce the other.