Labor Market Adjustments to Shocks in Australia
IMF Working Papers, May 24, 2017
Source details
- Canonical URL
- Labor Market Adjustments to Shocks in Australia
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Bibliographic details
- Authors: Adil Mohommad
- Published: May 24, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484301760.001
Key research questions and scope
- Examines adjustment of Australian labor markets to significant declines in commodity prices, focusing on:
- Evidence of increased labor market frictions following the commodity price decline.
- Flexibility in labor input adjustment in response to demand shocks.
- Changes in labor productivity in the wake of resource reallocation with the decline in mining investment.
- The role of migration in adjusting to the commodity price and mining investment cycle.
Main findings
- Little evidence of increased labor market frictions with the decline in commodity prices.
- The relatively smooth transition has been assisted by increased flexibility in adjustment of worker hours over time.
- Labor productivity growth has sustained its historical average through the transition, despite some temporary drag as the economy rebalances.
- Migration has played a key role in labor market adjustment through the commodity cycle.
Subject areas and keywords
- Subject: Employment, Labor, Labor markets, Labor productivity, Production, Unemployment
- Keywords: economic flexibility; Employment; equilibrium unemployment value; Global; growth in services sectors; IMF staff calculation; IMF staff estimate; labor market; labor market dynamics; labor market slack; Labor markets; Labor productivity; labor productivity growth; labour productivity gap; Unemployment; WP
Content in this bundle
- Labor Market Adjustment to Shocks in Australia, WP/17/124, May 2017