{
  "title": "Labor Market Adjustments to Shocks in Australia",
  "publication": "IMF Working Papers, May 24, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/05/24/labor-market-adjustments-to-shocks-in-australia-44947",
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  "summary": "Labor markets in Australia have adjusted smoothly to significant declines in commodity prices with little increase in unemployment.",
  "sections": [
    {
      "heading": "Key research questions and scope",
      "content": "- Examines adjustment of Australian labor markets to significant declines in commodity prices, focusing on:\n  - Evidence of increased labor market frictions following the commodity price decline.\n  - Flexibility in labor input adjustment in response to demand shocks.\n  - Changes in labor productivity in the wake of resource reallocation with the decline in mining investment.\n  - The role of migration in adjusting to the commodity price and mining investment cycle."
    },
    {
      "heading": "Main findings",
      "content": "- Little evidence of increased labor market frictions with the decline in commodity prices.\n- The relatively smooth transition has been assisted by increased flexibility in adjustment of worker hours over time.\n- Labor productivity growth has sustained its historical average through the transition, despite some temporary drag as the economy rebalances.\n- Migration has played a key role in labor market adjustment through the commodity cycle."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Employment, Labor, Labor markets, Labor productivity, Production, Unemployment\n- 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\n\n---\n\n Content in this bundle\n\n- Labor Market Adjustment to Shocks in Australia, WP/17/124, May 2017\n  - Labor Market Adjustment to Shocks in Australia, WP/17/124, May 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Labor Market Adjustment to Shocks in Australia, WP/17/124, May 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/05/24/labor-market-adjustments-to-shocks-in-australia-44947"
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    "Authors: Adil Mohommad",
    "Published: May 24, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484301760.001",
    "Examines adjustment of Australian labor markets to significant declines in commodity prices, focusing on:",
    "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: 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",
    "**Labor Market Adjustment to Shocks in Australia, WP/17/124, May 2017**"
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