Business Report – Standard Of Living Of Australians
Standard of living refers to the combination of wealth, basic necessities, and material goods available to the people. It may also include many sub-factors like quality of education, general happiness, infrastructure of the region, mortality rate and any other factor which has a impact on the general quality of life of a person in that region.
Developed countries tend to have better standards of living when compared to developing nations. It is essential to note here that standard of living is primarily measured from the poverty rate and disparity of the nation as a whole. Also, standard of living cannot be merely a function of some economic factors, non-tangible factors like happiness and general mood of the nation also a role, albeit minor, in inculcating a sense of growth in the nation.
Australia as a nation is very developed in cities like Sydney and Melbourne where the standard of living is very high and at par with the leading cities of the world. But the disparity between the urban regions and the rural outback is not rated very highly on the standard of living (BCA, 2010).
Per Capita Income : Per Capita income is widely regarded as the primary indicator of the progress and living standards of a country. It is computed by taking the GDP and dividing it by the total population of the country.
GDP :GDP is the total of all goods and services produced within the country in a period.
Unemployment Rate : The unemployment rate is calculated by dividing the number of employable unemployed people by the total labour force of the country.
All the above three terms are very important to gauge the standard of living. Higher the per capita income, better the standard of living. Unemployment rate is linked to the income being generated by households and a higher unemployment rate directly means that more number of people have a lesser amount of disposable income.
Apart from these, sectors like education and healthcare have a strong impact on the standard of living. A robust systematic education sector leads to long-term benefits of an educated majority population who can contribute to the economy in many ways. A systematic health care sector ensures that the country keeps epidemics at bay and promotes good health across the nation.