Question #39

The Australian economy has in net terms generated 62.2 thousand jobs since February 2008, but unemployment rate has risen from 3.9 per cent to its current 5.4 per cent. This is because

• the federal government deficit has not been large enough over the period.
• the dole conditions are too generous and there is a disincentive to work.
• the labour force has contracted in the face of the global financial crisis discouraging workers to look for work.

Answer #377

Answer: the federal government deficit has not been large enough over the period.

Explanation

Please read A surprise every day employment rises! or post a comment for further discussion