A new trend of the unemployed and bankrupt in 2012/13
By March this year (2012),the unemployment rate stood at 5.2 percent. While this value seems slightly lower than those of 2008 and 2010, there is no doubt that low consumer confidence is leading to less spending. Companies there-fore are making low sales and retrenching the labour force in order to cope with their finacial situation.
According to a study conducted at Melbourne School of Law, personal insovency and bankruptcy rates in Australia had shot up as high as 261% in Australia by the end of the 2009.This was a 12.2% increase above the levels noted in 2007 and 2008. This situation was mainly attributed to easy access to loans and the love of easy credit.
The unemployed and bankrupt therefore have to deal with poverty, social and economic exclusion, and despair.
The unemployed and bankrupt remain the most desperate victims of high personal spending, excessive use of credit and domestic discord.The rate of divorce in Australia lies at 50%. This implies that family debts that were jointly incurred, have to be repaid by individual devorcees. Morgage loans become a burden to a single spouse instead of a couple. This is a major contributor to the huge number of the unemployed and bankrupt persons in Australia.
There are those who become unemployed and bankrupt due to uncontrolled spending, arising from easy access to credit. Availability of personal loans and other forms of credit has encouraged many Australians to acquire money which they carelessly spend on unecessary goods and services.The Australian economy has undergone many structural changes. Changes in technology and international trade has altered the the methods of production in industries. Stiff competition from developing countries producing similar goods has increased the need to use better technology and minimize production costs.
This has in turn led to loss of jobs as companies replace a significant number of employees with machines.As the number of people losing and seeking jobs increase, bankruptcy becomes inevitable for those who rely on salary income as securies for bank loans. The unemployed and bankrupt therefore have to deal with poverty, social and economic exclusion, and despair. The whole economic scenario turns into a vicious circle with industries experiencing lower sales; more employees getting retrenched;the jobless, home-owners and landlords ending in despair and contributing to the pool of the unemployed and bankrupt in Australia.
unemployed and bankrupt if they are not in a position to pay their debts.
The most problematic areas of unemployement in Australia have been youth unemployment, poor employment opportunities for old workers and lack of long-term employment.In Australia the production of goods and services depends on the formal economy that relies on people who work for wages. A person is considered unemployed and bankrupt if they are not in a position to pay their debts due to loss of income and assets and did not work for at least one paid hour the previous week, are seriouly seeking work but not getting or are unable to take up a job in the next week if they were available. This is a complex financial situation involving a combination of factors which might be beyond the control of the victims. So unemployed and bankrupt will not be a diminishing trend in the future.