Unemployment is the percentage of people in the labour force without work but actively seeking employment. Australia's rate of unemployment is around 23 year lows measuring at 5.7% in April, 2004 but structural, long-term and underemployment have risen.

Unemployment's fundamental economic cost is the opportunity cost of lost output and income. Real GDP will be lower (as it's below full employment) reducing national income, productivity along with living standards. High unemployment means there is an excess supply of jobs so employers find labour more easily and are less likely to increase wages to attract workers.

Unemployment causes a loss of human capital as the unemployed don't contribute skills and experience to the workforce. The depreciation in unemployed human capital and increased duration of unemployment escalates this rate of unemployment. Securing a job is more difficult the longer a person is unemployed because they're less preferred to new workers causing deskilling as...