BUSN20019 Professional Project

How change in employment/unemployment is related to change in population in Australia Is population growth is the main cause behind unemployment in Australia.

The report focuses on the impact of population growth on the rate of employability in Australia. The purpose of the report is to analyse the changes taking place in the employability level in Australia based on the changes it incurs in the population. According to Coale & Hoover (2015), one of the main reasons behind the increased rate of unemployment in a country is the increase in population. However, population growth can also be significant in terms of increasing the economic development of a country. The report analyses the reasons behind the rate of change in employability and the effects population growth can have in Australia. The reason for selecting this issue is the fact that migration in Australia has increased over the past few years. Hence, with the increase in the number of people in the country, the employment rate in Australia has seen considerable fluctuations.

One of the most distinguished social evil is the unemployment in a country (Diamond, 2014). Unemployment is also an important economic factor that hampers the progress of a country. The growth in population can lead to significant changes in the economy impact the growth of employability in a country. The report analyses the impact population growth can create in the economies in Australia. The reason for the rise in interest for this topic is the fact that rate of migration in Australia has a significant impact in the country. The Australian population has a significant impact on the growth of the economy and the rate of increase in industrialisation in the country. Hence, the report is going to relate the effects of population change in the country and the overall impact it has created in affecting the employability rate in the country.

The chosen topic is relevant to my profession as I am a student of engineering economics. The factors related to employment and unemployment is of importance for my professional development. The factors that lead to significant changes in the employability of a country are an interesting topic for me. Thus, the relation between employability and population change have been selected in order to enhance my career development.      

Aim, objective and research question

 The aim of the report is to analyse the change in a rate of employability in Australia with respect to the change in population. The population is considered as a major factor influencing changes in the employability rate in the country. Hence, based on the aim of the report, objectives can be formulated. The objectives include:

• To analyse the relation of change in employment/unemployment with the change in population in Australia
• To understand whether population growth is the main cause of unemployment in Australia

1. Research Hypothesis:

Hypothesis 1:  Population growth in Australia has positive impact upon employment.

Hypothesis 0: Population growth in Australia has negative impact upon employment.

In order to understand the conceptual framework, we need to specify the variables that we have considered for the further research process. Two variables have been detected:

1. Dependent Variable:Employment
2. Independent Variable:Population growth death rate, ageing system, literacy and medical facilities

The following diagram succinctly shows how the variables are interrelated to each other:

Concept of population growth

According to Lutz et al., (2014), population growth is one of the most important factors that are needed to be considered by the countries. Every country in the world needs to undertake an analysis of the population and maintain its growth. Increase in a population may lead to significant problems in the society such as unemployment and poverty. However, Bongaarts (2016) countered this by stating that population growth may sometimes lead to the rise in the economy of a country. Reports claim that the population of the world increases by 1.1% annually. In the modern times, most of the countries in the world are affected by the high rate of increase in population. Despite the rise in capitalism and industrialism, the significant and steady growth of population cannot be controlled (Ahlburg, Kelley & Mason, 2013). Most of the skilled people around the world have faced the evils of overpopulation. In this regard, the effect of population growth in Australia has also been a significant factor in the economic condition of the country.

Leigh & Blakely (2016) stated that the growth in population has seen many skilled workers lose a job or unable to find jobs that are suited to the skills they possess. The positivity of growth rate signifies the manner in which the population of a country increases. Some of the ways in which population can be controlled in the country are by the movement of people from one place to another. However, this is not a valid solution for countries as migration may increase the population in other countries (Panayotou, 2016). Countries in Africa have suffered economically because of a high population. The economic development of the countries in the region has resulted in the poor development of the countries. It is for this reason that China has managed to control the rate of population in the country and improve its economy. Enderwick et al., (2015) stated that a limited growth of population can help in the growth of an economy.  

Reasons that affect employment

Employment is based on a proper relationship between two or more parties engaged in a contract. Employment to an individual is provided based on the skills of the person and the vacancy that exist in an organisation. However, unemployment may lead to the backwardness of a society and in turn bring about problems in the economic condition of a country (Cai, 2015). One of the main reasons for the growth of unemployment is the increase in population growth in the countries. With the increased number of people, a number of skills also increases. Hence, most organisations find it difficult to amass the individuals and create an unemployment situation. According to Keynes (2016), the fall in wages leads to unemployment, which in turn suggests the effect of minimum wages on the employees. People with the larger expectation of minimum wages are bound to face more unemployment due to the continuous growth of population. However, unemployment may also occur due to lack of skill of an individual (Harper, 2014).

Buhaug & Urdal (2013) stated that organisations look for experienced as well as skilled workers that can help in increasing the productivity. In the modern world, dependence on technology has also resulted in the decrease of employment. Hence, a growth of population is the not the sole reason for the decrease of employment in a country. In this regard, it can be said that in a country like Australia, many migrants enter the country in order to seek job opportunities. These migrants are usually from underdeveloped or developing countries that want to enhance the carrier in a developed country (Keeble & Wever, 2016). Migrants attract jobs that provide low wages rather than the jobs that require skilled expertise. In certain developed cities like in Sydney, overflow of people have caused fewer vacancies in the organisations. Thus, the urban areas have grown to be a society filled with employed individuals (Bloom et al., 2015). Thus, the impact of population is justified as the main reason for the cause of unemployment.     

Impact of population growth

Based on the analysis of the impact of population, it can be said that the increase in population may have a positive as well as a negative impact. The negative impact of population growth is the rise of unemployment (Apatov & Grimes, 2017). This is established from the fact that migrants in Australia have consumed most of the job vacancies that exist in the industries. This has led to the loss of jobs for the inhabitants. As stated by Castles, De Haas & Miller (2013), the fact that the migrants are content with low pay jobs to have resulted in the difficulty of finding employment for the local people in the country. Workflow population progress from low productivity market to high productivity industries and minimise the costs required for hiring new employees. Hence, this has led to the increase in unemployment in Australia (Krockenberger, 2015). However, there has been criticism about the increase of population. Most scholars are of the opinion that migration or increase in population leads to the improvement in the economy.

 Birrell (2014) suggested that increases in population brings about fresh talents and increase the supply of workforce. Replacement of an employee can be easily available if talented individuals exist in the country. The growth of population in the developed countries has led to the growth of industries and has expanded the opportunities for employment. This increases the revenue and stock of the country as well as the industries (Wilson, 2015). However, a steady growth of population can lead to the simultaneous growth of employment. This can help in mitigating the problems that exist in the developing countries. The ways by which the developing countries can estimate the population growth is important in understanding the effects of population. In order to maintain the equilibrium between population and employment, it is important to maintain the labour supply. Hence, it is the responsibility of the Government to prevent the excess rate of migrating people and maintain stability in the population of the country (Denny & Churchill, 2016). Apart from this, a change in wage structure may be able to control the unemployment factor in the country.

This chapter is going to elucidate the basic methods for the entire process of how the research has been conducted. Research methodology is the academic report of the description of the authentic process of research. A researcher needs to drive the research process into validating the retrieved fact so that there is no loop left that would raise the question for the readers of the paper. In this context, the research methodology provides such literature channelizing the entire methodical manner. This chapter is going to be segmented into the following categories:

1. Research Approach
2. Research Philosophy

• Research Design

1. Research Strategy
2. Data Collection Method
3. Data Analysis

Research Outline

The research outline takes into account the methodological tools in order to execute the entire research. The following table is going to demonstrate the research outline that would ease the process of the entire research:  

In this case, this has been taken into certain consideration pertaining to the effective understanding of the fact that this would actually deal with the process for the entire research purpose.

Research Philosophy

Research philosophy is the ideological consideration of the way a research is conducted by the researcher. It actually contemplates the process and its orientation with the research topic. Research philosophy actually focuses on its segmentation. The categories of research philosophy are the followings:

1. Realism
2. Positivism

• Interpretivism

The induction of the philosophy of realism constitutes of the process of the continual research process to find the actuality of the research outcome and the data that is retrieved from different sources. In this regard, it can be contradicted that, it is not possible to always get real information or to judge whether the retrieved information is true or false. In this context, this has to be taken into certain consideration pertaining to the fact that this would focus on the basic understanding of the criteria. In fact, this would focus on the entire criteria of the process pertaining to the entire understanding of the process.  

 On the other hand, the philosophy of positivism encompasses the scientific formulation and in taking the option of the data. In this regard, the rationalization of the retrieved data is taken into sincerity.  

On the other hand, the philosophy of interpretivism takes in the process of meaningful observation of the flow of the data retrieved from different sources.  

 In this specific research, the philosophy of interpretivism has been taken into consideration because of the authentication of the continual flow of the research method.

Research Approach

Research approach can be segmented into the following categories;

1. Inductive Approach
2. Deductive Approach

Inductive research approach takes into account the formulation of fresh idea and recommendation for a specific business scenario in relation to the existing theories.

On the other hand, this has to be taken into certain consideration that this process would focus on the entire case of the issues related to the research. The deductive research approach focuses on the gradual learning from the theories and then putting into the own thought process for the hypothesis.  

In this specific research, the deductive research approach has been taken into consideration.

Research Design

The research design can be segmented into three different categories. These are:

1. Explanatory
2. Exploratory

• Descriptive

In this specific research, this has been taken into certain consideration pertaining to the entire understanding of the cases. This specific research comprises of the descriptive design. The reason behind doing so is the easy and theoretical description of the retrieved data.  Because of the sheer understanding of the entire research method, this has been taken into certain consideration that no scientific approach has been chosen for the analysis of the research method. In fact, the phenomenal understanding of the retrieved data becomes important.

Research Strategy

There are some specific yet fundamental research strategies. These are:

1. Surveys
2. Interviews

• Case study Analysis

1. Action research

Some of the research strategies are also known as the strategic research tools. This has been taken into certain consideration pertaining to the effective business understanding where the major role of such is to drive the research method proper execution.  

Data Collection Process

Data collection refers to the authentic retrieval of data from various legitimate sources so as to provide ample opportunity for the research outcome. There are two different kinds of data collection process. These are based on the sources of data collection.

1. Primary Data Collection
2. Secondary Data Collection

In this specific research, both secondary and primary data collection sources have been used. For the primary data collection, different data collection tools such as survey, interview, and questionnaire etcetera have been used. On the other hand, for the secondary data, the data sources such as scholarly articles, newspaper journal articles, statistical data published by the government and others have been focused. The secondary data collection process comprised of two different methods- rejection and acceptance.

Correlation 

From the aforementioned table, it can be stated that the total percentage of the labour force in the country is 99% whereas 15.6 % of the total labour force in unemployed. The unemployed total percentage is the 23.3 %.   The correlation from the above table focuses on the stringent relationship between two variables: population and unemployment.

Regression Analysis

The linear regression deals with two different variables. One is unemployment and the other is population. Since the R-Square is below 70% i.e. (0055731) it can be stated as not a good fit. The regression has been carried out by the display called SPSS.  The R- squared result depends on two different variables.

 Significance F has been detected as 1.94E-07. It reflects the 0 value. Hence, it is also not a good fit for the purpose of the employment.  Following is the co-efficient intercept:

Because of this specific understanding of the statistical viewpoint, it can be stated that the F statistics is valued with 0. In this case, this has been taken as final consideration of the process. From the aforementioned analysis, the research questions have aptly been authenticated.

Conclusion

From the discussion, it is quite vivid; the population plays an important role in the determination of employment and unemployment. In fact, this has been taken into consideration pertaining to the data collection method where the data process is highly authenticated. Due to such effective criteria, this would be taken into consideration that the probability output takes into account the basic changes in the mode of the population.  It has thus been concluded that the population growth, specifically in Australia, where the core population is found to be scarce, is directly proportionate to the growth of employment. From the data analysis, it has been found that growing rate of population acts positively for the employment of huge number of individuals.  

Recommendations:

In this case it can be recommended that the government of Australia needs to take stern actions pertaining to the demographic settlements of the millions of individuals. For the employment of millions of Australians who have been core Australians or the native Australians or the people migrated from the other countries and settled in the country, the labour market needs to be settled and filled with potential individuals who would fulfil need of skilful labour in the market. The government of Australia thus needs to ensure that there is a clear understanding of the specific issues related to the demographic and economic changes in the country.

Reference

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Apatov, E., & Grimes, A. (2017). Impacts of Higher Education Institutions on Local Population and Employment Growth. International Regional Science Review, 23(2), 121-190

Birrell, B. (2014). The outlook for population growth in Australia. Sustainable Futures: Linking Population, Resources and the Environment, 25.

Bloom, D. E., Kowal, P., Lloyd-Sherlock, P., McKee, M., Rechel, B., ... & Smith, J. P. (2015). Macroeconomic implications of population ageing and selected policy responses. The Lancet, 385(9968), 649-657.

Bongaarts, J. (2016). Slow down population growth. Nature, 530(751), 343-370

Buhaug, H., & Urdal, H. (2013). An urbanization bomb? Population growth and social disorder in cities. Global Environmental Change, 23(1), 1-10.

Cai, L. (2015). The dynamics of low pay employment in Australia. International Journal of Manpower, 36(7), 1095-1123.

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