Nowadays, we could easily
meet around us with people who struggle to find work. This rare phenomenon triggered
by the Global financial crisis in the nineteen-eighties has become currently one
of the most serious social problem among graduates.
the recession of the early 1980s; the unemployment rate rose by more than
300,000 to 724,000 (Labour Force, Australia, Dec 2009).
Even accounting graduates
who are highly educated and qualified in Australia are faced with this
difficult situation. The number of people who are studying or graduated in accounting
is much higher than the number of available work places including internship
parts. And lack of work experience leads to them not being able to find work.
findings are supported by reports in the media indicating an oversupply of
accounting graduates (Hawthorne & To, 2014; Tadros & King, 2014b).
This essay will outline
the causes, effects, while proposing possible government, universities and
companies level solutions to relieve unemployed accounting graduates. It will
then move on to evaluate the effectiveness of solutions to these problems, hoping
these solutions should be effective measures.
There are several evident
causes and effects for the accounting graduates to struggle to find work. Accountants
is one of the biggest and the most promising occupations in the Australian
workforce and is the largest source (by occupation) of immigration into
Australia with typically over 7,000 visas granted to accountants every year. As
a result, getting more international students have flowed into Australia, which
means the supply exceeds the demand. And the trend of unemployment rate for accountants,
since the following global financial crisis, has increased. One the other cause
is as employers indicated that international accounting graduates were unlikely
to be recruited because of their lack of communication skills, and more
specifically lack of English language skills. Employers view the development of
written and oral communication skills as very important attributes for
accounting graduates. For these reason,
Firstly, In the slow
economy, role of government is the most important and their intervention is
necessary because companies are more reluctant to hire or to invest to employees.
Possible government’s solution might be to provide subsidy or to give tax
breaks for companies (specially targeting small and mid-sized) which employ
more people than before. By doing this, companies could give more fair and varied
employment opportunities to graduates. Cutting taxes works like lowering
interest rates. Both give businesses and consumers more money to spend. That
increases demand. It gives businesses more cash to invest and hire more
workers. It would also encourage foreign companies to move in and boost economy
and labour market.
University level measure,
secondly, is that they should announce that they would gradually reduce the
number of new accounting students that they have recruited due to lack of
insufficient workplace. Some universities in Australia are only eager to recruit
new students and go not take into account this situation. Next step is
education. Since companies need employees who have work experiences or are more
professional, universities should educate them in more practical way, changing
out-of-dated system and give chances to build a careers before graduating. For instance,
as a way of educating, the professor and students together make a small company
and In accounting fields,
of the graduate accountants entering the labour market are former international
students. In the report, employers commented on the large fields of unsuitable
applicants, with the majority lacking specific experience or skills. In
addition, large numbers of applicants failed to address selection criteria or
did not provide required documentation (DEEWR, 2013a).
is due to a lack of experience which makes it more difficult for them find
jobs, and they can’t gain the practical experience they need unless they can
find someone willing to hire them (Unemployment causes and consequences).
Lastly, companies cannot
help considering their potential costs.
In conclusion, this essay
has highlighted problems encountered by unemployed accounting graduates when entering
the workforce and enumerated possible solutions. However, each solution would
not be effective by itself to solve the problem. Above suggested solutions are intimately
associated with each other. Making joint efforts of government, universities
and companies would only lead to bring out good results.