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[Diya Jain]

essay queston discuss the impact of the changing nature of employment in the Australian economy

Employment structures are changing through outsourcing which is used by Australian businesses. Firms use outsourcing to improve efficiency as it allows them to specialise in other functions such as marketing. Businesses experience economies of scale when they outsource overseas due to cheaper labour costs. Domestic outsourcing creates short term employment as workers work on short term contracts and are employed by different organisations. This can affect the unemployment rate in Australia which currently is at 4.9% as of June 2021 (ABS). This has significantly decreased from April 2020 when it was at 6.2% meaning domestic outsourcing can have a positive outcome for the Australian economy as it provides employment for individuals.

However, offshore outsourcing can have a detrimental effect on the Australian economy as it can result in increased unemployment. As firms outsource individuals from other countries, they take away employment opportunities from Australia

How do i expand on this ? like i am just stating employment will taken away, how do i say the how and why that occurs

 

[jimmysmith560]

Hey, here's what I think would be a good addition to your paragraph:

However, offshore outsourcing can have a detrimental effect on the Australian economy as it can result in increased unemployment. As firms outsource individuals from other countries, they take away employment opportunities from Australia. Because of this, such positions within Australian companies are made redundant, resulting in the redundancy of a particular number of Australian employees. Because these employees were made redundant, the professional knowledge they have acquired (through education and training) itself becomes redundant and therefore irrelevant for the Australian workforce. The increase in unemployment resulting from offshore outsourcing can damage the Australian economy in two ways:

1. Because offshore outsourcing makes positions, knowledge and employees redundant, the Australian workforce will become less knowledgeable and skilled as a result. This gives the economies of competing countries an advantage over Australia, particularly those attempting to develop their workforce professionally, making employees from those countries more attractive than Australian employees as Australia becomes unable to compete with foreign economies due to the absence of a proper workforce in a particular field/industry. This causes financial losses to Australia and consequently damages the Australian economy.
2. Reducing the number of employees in the Australian workforce will directly lead to less tax paid to the Australian government by its workforce. Less tax being paid to the government results in the government not being funded as required, causing a reduced ability/inability to effectively fund projects that aim to support the Australian economy (as would be the case, should no positions be outsourced), ultimately rendering Australia a less attractive investment target for foreign investors. Less foreign investment causes financial losses to Australia and consequently damages the Australian economy.

I hope this helps!