AUSTRALIA / SALARY

Introduction

Australia is an island country found in the southern hemisphere. The country is surrounded by the Indian Ocean and the Pacific Ocean. It’s the smallest country among the seven continents and the largest country without land borders. The currency used for transactions is the Australian dollar.

The country uses a highly advanced and high-income approach economy.  Australia's economy is vast hence being ranked as number twelve globally in terms of nominal GDP. The guide will clearly show you some of the economic sectors contributing to the enormous growth and the country's GDP.

GDP

The world economic database estimates for the year 2021 GDP $ 1.61 trillion for nominal GDP and the GDP in terms of purchasing power parity is $ 1.41 trillion. Australia has the 12th largest economy in terms of nominal GDP and the 19th largest globally for GDP in terms of PPP.

The nominal GDP per capita estimate for 2021 is $ 62,728, while that for GDP per capita in terms of PPP is $54,891. Australia is ranked as number nine globally for nominal GDP per capita and seventeen for GDP per capita for purchasing power parity.

The growth of domestic products based on various economic sectors in the year 2017 was as follows.

·       62.7 percent for services.

·       7.4 percent for construction.

·       5.8 percent for mining.

·       5.8 percent for manufacturing.

·       2.8 percent for agriculture.

The GDP growth of Australia has been decreasing over the years. The world economic outlook shows that in the year 2018, Australia's GDP was 2.7 percent and 1.8 percent for the year 2019. There was a massive drop in the year 2020. The GDP estimate was – 6.7 percent.  The main reason attributing to the enormous decline is the Covid 19 pandemic. However, in the year 2021, the GDP has begun to rise by April 2021, the GDP growth was 6.1 percent.

Economic sector

The service and industry sector plays a huge role in Australia's economy.

1.     Services

Some of the leading industries in the service sector include

·       Information technology

This sector comprises IT-related jobs such as system and website designs. Most IT-related jobs are found in the state's capital cities.

·       Tourism

Domestic tourism contributes to about 73 percent of Australian tourism. Tourism has been an enormous contributor to the economy. The total employed workforce for the year 2017 was around 646,000 people. The sector has increased the country's GDP and Australia's earnings.

·       Education

Education is compulsory in Australia for the young and also the adults. Australia also has international programs thus, incorporating international students. The education sector has resulted in the employment of the workforce, therefore, boosting the country's economy.

2.     Industry sector

The primary industries in Australia include

·       Mining

Some of the main minerals found in Australia include gold, silver, copper, iron ore, bauxite, manganese, lead, zinc, uranium, tin, nickel, phosphate, and sulfur. Australia is the second-largest producer of gold and manganese globally. In 2019 it was also the leading producer of iron ore. The minerals are part of Australia's exports, thus contributing to the high economy.

·       Manufacturing

The manufacturing industry GDP in the 1960s was 30 percent; however, the GDP growth of this sector has been declining. In the year 2007, the GDP growth was 12 percent which represented an 18 % drop. The drop is attributed to the ceased production of car manufacturing companies such as Mitsubishi, Ford, Holden, and Toyota.

3.     Agriculture

In 2009 the agricultural sector contributed around 2.1 percent of Australia's GDP. The main activities in the industry include fishing, forestry, and agriculture, about sixty percent of the farming products in Australia are usually exported. The agriculture sector has boosted the country's GDP and increased the countries’ labor force. In February 2015, the number of people who were employed by the agricultural industry was around 325,321.

Employment Sector

1.    Employment

Reports from the Australian Bureau of statics show that in June 2021, the number of employed people was 13.8 million. Australia's employment rate as of June 2021 was 74.6 percent.  In 2017 the service sector had the most significant workforce representing 78.8 percent. The second rank was construction with 9.2 percent. Third manufacturing sector with 7.5 percent. The fourth agricultural sector with 2.5 percent and finally the mining sector with 2.7 percent. In May 2021, the Australian labor force had massive employment in various sectors such as health, construction, education and training, manufacturing, wholesale trade, and many others.

2.    Unemployment

According to the Australia Bureau of Statistics, the number of unemployed people in August 2021 was 617.1 thousand, making the unemployment rate 4.5 percent.  The percentage of unemployed youth in August 2021 was 10.7 percent.

Exports and Imports

Exports

Australia is ranked as the 25th largest exporter in the world. Between the years 2018 and 2019, Australia exported goods worth 480.2 billion US Dollars. The main exports include aluminum, petroleum, copper, iron ore, coal, and petroleum. Australia's main export partners include New Zealand, India, United States, China, Japan, and South Korea. Australia is a member of the world trade organization and has a free trade agreement with Southeast Asian countries, including Japan. Singapore, Thailand, United States, Malaysia, Chile, and China.

Imports

Australia is the 20th largest importer globally. The country's main imports include good vehicles, civil engineering equipment, computers, medicaments, gold, furniture, petroleum cars, and telecom equipment parts. The main import partners include China, United States, Japan, Germany, Thailand, and the United Kingdom.

Inflation

Australia's inflation in the year 2020 was about 1.4 percent. The inflation CPI has been increasing gradually. By June 2021, Australia's inflation CPI rose to 3.8 percent. Some of the bases of the increased inflation are the fall of the fuel price and the introduction of free child care.

Conclusion

Australia has a highly developed economy. Its economy is massive, making it the twelve largest national economies by nominal GDP and the eighteenth largest in Purchasing Power Parity GDP. Austria's GDP has been decreasing over the years; however, in 2021, there was a slight increase. The service industry makes the highest contribution to the country's GDP and has employed the highest workforce.  The primary sectors leading to Australia's high economy include health care, mining, financial and insurance services, and manufacturing. Exports are also a significant contributor to the country's economy.