For Australia, globalisation has delivered many benefits, including increased trade (access to cheaper imports, greater variety of goods) and higher levels of economic growth.
But -- globalisation has also led to a particular type of unemployment -- structural unemployment.
Structural unemployment occurs when the skills of the unemployed workers do not match the vacancies in the economy. This occurs following a process of structural change, when the mix of industries in the economy changes.
In Australia, globalisation led to large scale structural change where Australia's manufacturing industry significantly declined -- and collapsed in some instances.
And structural unemployment represents a real challenge for governments.
This video defines structural unemployment; talks about the causes of structural unemployment; and examines how a government can attempt to address structural unemployment.
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