Analyse recent labour market trends in Australia.

Labour is a factor of production that is supplied by the household sector in exchange for a wage paid
by the firms. The functions of the labour market are seen through the interactions of workers who
supply labour and employers who demand it. These relationships are heavily influenced by exterior
factors. For example, the differences of incomes from workers of different occupational groups and
trends in outsourcing have been significantly transformed by the implications of COVID 19 in
Australia's labour market.
 
The differences in incomes of workers in different occupations is a trend of the Australian labour
market which has been exploited by the impact of COVID 19. Supply and demand explain why wages
are different for different occupations. Engineers are paid more, being in high demand because they
produce the products that many consumers want and their supply is limited because the training for
these jobs is difficult. Social workers and historians, aren’t paid as much, even though their work is
important because demand is relatively low and supply is relatively high. However, the inability to
earn the average desired income and work entirely, is due to public safety measures and abrupt
declines in business, as a result of COVID 19. This is evident in diagram
1.1, which represents the labour market for engineers. In which the
demand of labour decreases, shifting from D1 to D2 and supply
contracting from QE to QE2 due to the fall in price to WE2. This shows
how less quantity of people provide labour at a lesser price -> is this
logical, there are a lot of other reasons or situations in which this could
happen. Clearly, COVID 19 has disrupted wage outcomes through its
different impacts on many different occupations. Industries most
impacted include jobs in hospitality and retailing which have particularly
low average wages in contrast to professional jobs people can do from
home. The Grattan research institute conducted a study which shows,
40% those with an income of $400-$500 per week have lost work, in
either less hours or entirely. Hence, drastically impacting their wage
earnings. Whereas 20% of those earning $1500-$1750 per week have lost work. Undeniably, the
higher one's income, which directly correlates to their occupation, the lower their chance of their
work wage and hours being affected by the crisis. Additionally, this hinders the 3.5 million Australian
workers, or 28% of all workers from just these two industries. Furthermore, the ABS shows wage
growth in the food and accommodation services which is alike to many other industries and most
impacted, at 2.4% wage growth in 2019 and now declined to 1.8% wage growth projection for 2020.
The continuation of these declines in wages and work hours between a range of industries leads to
less income creating less consumption and thus less demand for work. Holistically forcing a shrinking
economy. Government interference between university fees for different courses has encouraged
and deterred people from certain occupations. This will create a balance; a suitable number of
people entering each field which will shorten the wage differences by regulating supply of labour to
different occupations. Discernibly, COVID 19's impact on incomes of workers from different
occupations needs fair policies and to be significantly monitored by its effects on the Australian
economy.

COVID 19's impact on the trends in the Australian business' outsourcing schemes reveal its
underlying impacts on the Australian labour market. Outsourcing is a business strategy that employs
a firm outside of a company to perform other services that are need in house. Due to Australia's
changing economic landscape and the rising boom of globalisation, more business outsource for its
benefits. The pivotal advantages of outsourcing that 59% of the world's businesses justify as their
main purpose is lowering the costs of factors of production - specifically labour. Similarly,
outsourcing allows for increased productivity = lower costs (it doesn’t help you produce more things)
as time is allocated to the most the most essential tasks and accessing skilled talent pools in the
global market. However, in diagram 1.1, which represents the labour market for IT workers in
Australia. Outsourcing international IT workers shows the decrease in demand for domestic workers,
seen in the shift from D1 to D2 and a contraction in supply from QE to QE2, as a result of the wage
price falling along with the quantity of workers. This is further supported
by the recent decline in outsourcing spending by firms which has fallen
by 9% in March. Alternatively, in diagram 1.2, the effect of COVID 19 on
the labour market for IT workers in Australia shows an increase in
demand for domestic workers as a result of Australia's major
outsourcing locations; India and the Philippines, where operations have
closed due to reduced staff and being ill equipped to work remotely.
This is seen the shift from D1 to D2, which creates an extension in supply
from QE to QE2 as a result of the rise in price to WE2. This shows how
COVID 19 has led to many firms removing the offshore risk yet increasing
domestic labour costs and causing strain on the domestic workers as
they take on the additional workloads. Although, economist Tim
Harcourt, at the UNSW Business School, says “jobs might actually return
to Australia in the short term.” This is further supported by Telstra for example, recently announcing
its plan to hire more than 3,500 temporary roles across the country to relieve pressure on domestic
support an diminish unemployment. Opposingly, other firms are using technology to replace the loss
in efficiency. This avoids the risk of dependence on outsourcing services and could potentially lead to
a decline in outsourcing in the future, but may only worsen the unemployment crisis. Concluding all
the facts, the most viable = economic option in managing the impact of outsourcing would be to
increase employment, rather than workload and increase training in outsourced fields within
Australia to diminish the reliance on outsourced companies.

Evidently, both the difference in wage outcomes for different occupations and outsourcing trends
have been altered by the effects of COVID 19. Studying these trends that have undeniably reshaped
the Australian labour market, provides understanding of its function and advises future planning.

Explain elasticity more -> look at price floors in the market

Relatively little elasticity in the market for engineers

Always think logically before you analyse -> would this actually be the case

Could relate low income/employment to job keeper in first para

Use a quote from a different perspective

Short intro