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Global Labour Markets

Question 1:
While we celebrate the limited impact that the GFC had on the Australian economy, globally, the situation is very different. The number of jobless worldwide reached nearly 212 million in 2009 following an unprecedented increase of 34 million compared to 2007, on the eve of the global crisis, the International Labour Office (ILO) said in its annual Global Employment Trends report. “The increase that we’ve seen is the largest since we began tracking these global and regional trends in 1991 and in some countries we actually know this increase in unemployment is the largest they’ve seen since the Great Depression,” said Lawrence Jeffrey Johnson, who directed the publication of the report.
Explain in your own words, why a reference to the jobless is more meaningful than a reference to unemployment in the global context.

Question 2

Discuss the notion of vulnerable employment along the following dimensions:
(a) sector of employment;
(b) type of employment;
(c) wages;
(d) working conditions;
What has happened to vulnerable employment as an effect of the GFC?

Question 3

A number of policies have been suggested to stabilize economies hit by the GFC. Consider the following policies:

(a) cuts in government expenditure
(b) social programs supporting health and education;
(c) policies that increase labour productivity

For each policy define their impact on GDP and employment growth, and illustrate their impact on the quality of employment.

Use tables from the weekly readings whenever appropriate.

Question 4

Discuss the role of policies directly to support Small and Medium Enterprises at the light of their relationship with both labour and credit markets.

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