Economics Markets Essay

The most probable result if the tokenish employ for puerile workers in Australia give augment is that the art straddle willing decrease. The make on employment on the workers on the increase in the minimum wage of teenage workers will lose their job. This is because employers must stay their profit. increase the minimum wage of the workers will result into decrease profit of the partnership, frankincense employers will lessen their employers also decreasing their labor costs to retain their profit (Kennan 2007).Take for example a company that aims to maximize its profit. Currently, the companys labor force is n and the minimum wages for its employer is w. conceptualize a case when the company increases the minimum wage to W with no changes to opposite factor like profit. If this happens, the profit will decrease because of n*(W-w). The only way to regain the losses of the company that is brought by the increase in the minimum wage is to lessen its labor force n to compen sate the losses.Drastic change will occur on the employment of teenage workers in Australia because employers will consider first the adult or the professionals. Companies that need force-out with expertise on the said company will be hired first because these professional are more outfit in producing profit for the company. The figure below illustrates how employment is being stirred by the increase in the rate of wage of the labors. As the wage increase, so also the gap thus increasing the rate of unemployment (David Tuerck and capital of Minnesota Bachman 2005).There are other possible outcomes when minimum wage rate will increase among teenage workers in Australia. Though many employee will be attracted on the high wage rate in Australia, in that location is a big possibility that companies will go to other places where in that respect is low wage rate. Most companies now are finding their personnel on places where there is a low wage rate. This is to lessen other expenses incurred by the companies (Haussamen 2007).