Pacific Agreement On Closer Economic Relations

Published Date: 02 Nov 2017

Part 1: Introduction

This particular report highlights the trading system of Australia. Along with this, the major employment and unemployment issues are being discussed. Different planning strategies and economic crisis are also show cased.

Part 2:

In the recent times, Richard discusses that many companies are being highlighted in the news for shedding the jobs. These companies mostly include Quants, Westpac, Australian Airlines, ANZ, Toyota, Macquarie Bank, etc. As Australia couldn’t save itself from the international crisis, the present rate of unemployment still remains very lower as compared to many other developed countries. This clearly shows that Australian economy is very much strong and is capable of providing many employment opportunities. This particular essay will evaluate the major employment opportunities over the past last decade. (Richard, 2012). Richard’s discussion can be related to the analysis provided by the Australian jobs that different factors have contributed in providing new opportunities of employment during the last decade which mainly include technology change, labour market flexibility, an economic reform, low carbon economy shift, etc. But the two major factors which have increasingly developed the employment opportunities in Australia are the growing export rate from Asian market particularly China, India and which have caused the mining boom and the export from the agricultural product, and most importantly the shift to an agricultural economy from service economy. (Australian Jobs, 2012). Lastly, Neville talk about a totally different factor about the fact that the Australian labour market is particularly changing when we move to a much sustainable low carbon economy. He states and presents a new innovation of his concept that the Australian economy is increasingly adapting to the new change. When I critically analyse the whole situation I come to this conclusion that around 1970s, the Australia’s economic base shifted from the primary and secondary industries to many of the service based industries. Both the output and employment of the industry has been very much slower than any other industries. Employment in the field of manufacturing decreased by 1.7% between the years of November 1998 and November 2008 (Neville, 2008)

I think that both the global and domestic pressures greatly contribute in acceleration of the structural change, an increase of the Asian Market, different new technologies and the shift to a green economy.

Part 3:

According to D’Arcy (2012), the increasing rate of turnover, with a modest aggregate employment growth, is very much consistent with many new job opportunities in different parts of the economy and simultaneously other jobs ceasing to exist. The cumulative effect of this particular dispersion in the growth rates can be viewed in the total employment growth in a variety of industries. From the year 2007, around 300 000 net new jobs were created in the department of healthcare, around 200 000 jobs in the professional and scientific services and around 130 000 jobs in the mining and different education sectors. In comparison, the different number of manufacturing jobs declined by around 70 000, and the total number of jobs which were in the retailing is largely unchanged. Moreover, related to all this, the ABS Australian social trends (2010) states that the increasing economic downturns over the recent decades greatly affected the goods which were being produced in industries such as manufacturing more than the service industries and this reflected the structural adjustment in the overall Australian economy. From analysing the last decade, I think that the largest growth was seen in the health care and social assistance. Different industries which were mainly in the services sectors were grown in spite of the different difficult economic conditions. For example, the employment opportunities in the health care and the social assistance industry greatly increased during the three downturns since the 1990s. During the very recent downturn, the number of people who were employed in this sector increased by around 115,200 (10%), which perhaps reflected an increase in the demand for these services during the different downturns. But according to the Resettlement Services Australia (2012), mining employs much less than the 2% of the overall workforce in Australia. If i compare it with the healthcare and the social assistance (11%), the retail trade (11%) and the construction (9%), the particular contribution towards the employment by mining is miniscule (Resettlement Services Australia, 2012). Lastly the according to the Australian jobs, this particular industry is very important to the Australian economy, it is quite significant in the terms of the export revenue and also as a great regional employer with a great majority of employment that is located outside the state capital cities (64%). (Australian jobs, 2007)

Part 4:

According to the Trade Minister (2011), acquiring Australia a place in Asian started half-way dating from the last century when Bob Menzies started the process of engaging post-war Australia with its enemy, Japan. Different Asian countries like China, Korea, and India are the biggest in export market. Mainly China is regarded as one of the most emerging economies. Moreover, the Australian Government (n.d.) states that mostly all the Australians get benefited from the trading system. By an increase in the trading system, it creates more opportunities for the jobs and also provides many new opportunities to the different Australian businesses. Following are some of the free trade agreements with:

Australia-China FTA

Australia-Gulf Cooperation Council (GCC) FTA

Australia-India Comprehensive Economic Cooperation Agreement

Australia-Japan FTA

Australia-Korea FTA

Indonesia-Australia Comprehensive Economic Partnership Agreement

Pacific Agreement on Closer Economic Relations (PACER) Plus

Trans-Pacific Partnership Agreement

From the Reuters (2012), it was clarified that Australia was now involved in introducing a new policy stating: 'Australia in the Asian Century', Australian Prime Minister Julia Gillard pointed out that Australia wants to get benefit from the economies of both China and India. They also wanted to boost the trading system and investment in a much wider range. But there are many problems concerning all this. Emerson, the trade minister provided the four leading drawbacks which the Australian trade were facing and which they have to solve. These were management of the mining bloom, reduction in carbon emission, dealing with the ageing population also revitalizing the productive growth. Australia also recorded a trade deficit of around $427 million in December 2012 along with an app. 85 per cent of improvement in the revised $2.8 billion deficit of November. (2013)

Part 5: Conclusion

From the above studies, i conclude that job turnover is very much influenced by cyclical and great structural economic developments which greatly change the overall nature and also the number of jobs which are available in the economy. Although the recent focus was on the much weaker global economy, it is very important not to lose the sight of the different long-term benefits to the Australian economy due to the growth of Asia. According to D’ Arcy, this was particularly witnessed in the resource department. Different industries, regions and also many individuals are disproportionately affected. Different industries are greatly affected by the crisis and issues prevailing in the finance, insurance, property and in the different business services industries.

Industries are very closely linked to the business cycles, such as the construction, manufacturing and the Retail Trade.

In the famous recession of the early 1990s, those regions which were prone to the large increases in unemployment were mainly those that were already facing great disadvantages.

People with the least capabilities, skills and work experience are most vulnerable to unemployment and job loss. (Neville, 2009)

Talking about the trade of both the goods and services, balance on these was provided by the very recent statistical analysis:

In terms of trend, the balance on both the goods and services was a deficit of around $662m in the month of February 2013 whereas a downfall of around $329m (33%) on the deficit in the month of January, 2013.

Talking about seasonally adjusted terms, the balance of these was a deficit of around $178m in the month of February 2013 and a downfall of around $1,037m on the deficit in month of January 2013.

Most importantly, recently the Gillard Government planned to help the business capitalise on opportunities and chances in the Asian countries by calling on the expressions of particular interests in the total $6 million "Asian Century Business Engagement Plan." Australian Bureau of Statistics (2013)