The Labour Market

Supply and demand

How much people are paid for the work they do, is largely determined by the forces of supply and demand in the labour market.

Too many workers chasing too few jobs causes downward pressure on worker's pay and conditions of work. Wages and salaries will tend to stay low.

When employers cannot easily find workers to fill job vacancies, they tend to offer more pay and better conditions to entice workers to move from other places of employ.

Governments have a tendency to develop policies and laws that influence the Labour Market for the following reasons:

1. So that the nation can more effectively compete in the global market place.
2. To control inflation (increasing wages is a factor that pushes up the cost of products and services, and as a result puts upward pressure on inflation.
3. For political reasons (workers are voters and political parties need votes to gain or stay in power).

Employment in Australia

In February 2008, the total number of people in Australia with a job was 10,649,700. There were approximately 456,000 registered as unemployed. The unemployment rate was 4.1%, and this is the lowest rate since 1978, when presents records began.

The overwhelming majority of people (76%) are employed in service industries. In particular, the largest service industries by employment are:

• retail (14.8%) and wholesale (4.7%)
• property and business services (11.7%)
• health and community services (10.0%)
• education (6.9%)

A further 12.3% of people are employed in manufacturing , construction (7.3%) and agriculture (4.7%).

Mining employs only 0.9% of workers but earnings 27% of the nation's export dollars.