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Australia Yearbook - 2009-10

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Unemployed people<br />

In the monthly LFS, people aged 15 years and<br />

over are considered to be unemployed if they<br />

satisfy three criteria: they are not employed; they<br />

are available to start work; and they are taking<br />

active steps to find work.<br />

Two important measures of unemployment are<br />

the number of people unemployed and the<br />

unemployment rate. The unemployment rate,<br />

defined as the number of unemployed people<br />

expressed as a percentage of the labour force,<br />

offers an insight into the level of unutilised labour<br />

resources within the economy.<br />

Movements in the unemployment rate over the<br />

last 20 years have been dominated by the<br />

economic downturn of the early 1990s, the<br />

subsequent period of economic recovery and the<br />

recent global financial crisis. In trend terms, the<br />

unemployment rate peaked at <strong>10</strong>.7% in<br />

September 1992, before generally falling from the<br />

mid-1990s to 4.1% in February 2008. Since then,<br />

the unemployment rate has been steadily<br />

increasing (graph 8.34).<br />

For most of the period from June 1989 to<br />

June <strong>2009</strong>, the male unemployment rate was<br />

higher than the female unemployment rate,<br />

including from March <strong>2009</strong> to June <strong>2009</strong>.<br />

However, from June 1989 to September 1990,<br />

and from August 2003 to January <strong>2009</strong>, the female<br />

rate was higher than the male rate.<br />

In conjunction with the decline in the<br />

unemployment rate, the number of unemployed<br />

people has generally fallen from the levels<br />

recorded in the early 1990s although it has<br />

increased sharply over the last year.<br />

Over the past five years the proportion of<br />

unemployed people who have been in long-term<br />

unemployment (i.e. lasting 52 weeks or more)<br />

has steadily decreased, from 20% in 2004–05 to<br />

14% in 2008–09 (table 8.35). In contrast, the<br />

8.34 UNEMPLOYMENT RATE(a)<br />

Males<br />

Females<br />

Persons<br />

%<br />

12<br />

<strong>10</strong><br />

8<br />

6<br />

4<br />

Jun<br />

1989<br />

Jun<br />

1994<br />

Jun<br />

1999<br />

Jun<br />

2004<br />

2<br />

Jun<br />

<strong>2009</strong><br />

(a) Trend estimates.<br />

Source: Labour Force, <strong>Australia</strong> (6202.0).<br />

8.35 UNEMPLOYED PERSONS(a), By duration of unemployment<br />

Weeks<br />

2004–2005 2005–2006 2006–2007 2007–2008 2008–<strong>2009</strong><br />

Under 26<br />

%<br />

68.3 68.9 70.8 73.3 73.7<br />

Under 8 %<br />

42.8 41.8 43.4 46.3 43.2<br />

8 to under 26 %<br />

25.5 27.1 27.3 27.0 30.5<br />

26 to under 52 %<br />

12.3 12.9 12.4 11.6 12.4<br />

52 and over %<br />

19.5 18.3 16.9 15.0 13.9<br />

52 to under <strong>10</strong>4 %<br />

8.0 7.9 7.7 7.4 7.4<br />

<strong>10</strong>4 and over %<br />

11.4 <strong>10</strong>.3 9.1 7.6 6.6<br />

Persons<br />

'000 539.3 529.4 492.9 471.7 562.2<br />

(a)<br />

Annual averages.<br />

Source: Labour Force, <strong>Australia</strong>, Detailed – Electronic Delivery<br />

(6291.0.55.001).<br />

256 Year Book <strong>Australia</strong> <strong>2009</strong>–<strong>10</strong>

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