Australian Defence Force: Labour Demand and Supply sample paper

Australian Defence Force: Labour Demand and Supply


In almost every sector of the economy, the labor market is affected by the powers of demand and supply.  The supply of labor force is influenced by population in terms of education, gender, and age groups sets. In contrast, the amount of labor corresponds to the rate and quantity of laborers, and their willingness to work (Nankervis, Compton & Baird, 2008). Moreover, labor demand and supply is influenced by political, economic changes as well as developments in the practices of the commercial field. The 2016 Australian Defence White Papers recognize funding, balance policy, capacity, and preparation of its defense force (Bridget, 2017). The White Papers also proposed for a steady growth of the department with an increase in the size of its workforce so that the defence forces can continue to expand and modernize its operations. This paper seeks to critically examine factors influencing demand and supply vis-à-vis Australian Defence workforce.


Factors Influencing Labor Demand

Political Factors

 Political factors refer to an extent to which the government controls economic demand of an industry.  The government can influence financial situation by putting in place regulations and policies such as labor law, taxation, and environmental management, among others. In the case of Australian Defence, labor demand as proposed by the white paper of 2016, the government has shown willingness to support and provide funding for the same (Roberts, 2005). Overall, the government may influence the recruitment system and regulations. Thus, effective and fair requirements through government policy may affect the attractiveness of the labor demand and workforce.

In essence, such government policies aim to reduce inflation, increase the rate of employment, and promote stable economic growth within the country. The variable monetary policies affect trade and buying power.  Therefore, there is needed to effectively control the monetary policies of a nation efficiently (Nankervis, Compton & Baird, 2008). The government of Australia has thrived to expand and make effective fiscal policies that aim to incorporate and sustain the interest rates at lower levels. Additionally, variables like money demand remain to be dependent on real activity, including the purchasing power, which is dependent on a traded product dispossessed of barriers to global commerce. The rate of employment has increased because of the development of numerous manufacturing industries that have offered jobs.

Economic Factors

Economic factors influence financial performance and demands. These factors include inflation rates, economic stability, employment rates, income as well as interest rates on credits.  These factors play a significant role on a field of an economy.  They influence whether a company or department is ready to hire a workforce or not (Roberts, 2005). Thus, a better economic situation will inspire industries to hire and pay better remunerations and allowances. In regards to the Australian Defence workforce, the overall Australian GPD can accommodate the recruitment of the workforces as recommended in the white paper. An economic growth driver includes productivity and population income. In Australia, immigration has enabled an increase in population and hence large workforce capacity.  The White Paper proposes that the recruitments should be made relatively from the multicultural society.  The aging population is equally essential since they contribute to income tax revenue, which is in turn used to support government operations, including the hiring of the defence team members. The participation of every segment of the economy will lead to higher economic stability.

Social Factors

The social factors represent the norms and values of a society. These factors influence how organizations operate within a community. Social factors encompass population distributions by age, gender, population growth, and among others (Roberts, 2005). The Australian Defence workforce is mindful of these social factors and has shown the willingness to incorporate them in their recruitment.

Technological Factors

Technological factors entail innovations, which may influence operations of a company. Technology incentives, automation, as well as the level of innovation affect labor demands in the market. The Australian Defence team is aware of the technological innovations needed to modernize its workforce. The defence department also acknowledges the global military automation and technological revolution to streamline their operations. The Australian government, through the proposal of the white paper, supports military innovation. Therefore, this calls for the hiring of personnel with more significant change and technological capacities.

Environmental Factors

Environmental factors place environmental obligations to companies. These factors have become necessary due to the scarcity of raw materials, targets of population, the national policy, as well as global environmental regulations (Roberts, 2005). Also, these factors encompass ecological as well as environmental aspects like weather, climate, as well as climatic change that may affect industries’ operations hence they influence recruitment. The environmental factors influence how the Australian defence workforce hires new members. 

Legal factors describe obligations a corporate should appreciate and adhere to. The statutory factors entail discrimination laws, employment laws, consumer protection laws, safety laws, taxation laws, as well as patent laws (VPSC, 2015).  Companies should understand the demands of their legal obligation before hiring.  The Australian defence team is aware of these regulations.

Challenges in locating, attracting and hiring a labor force

One of the problems Australian defence force department have encountered in hiring is the number of qualified personnel. Certain sectors in the department require specialists such as doctors. In this sense, the personnel with special qualifications like doctors are few in numbers, thereby hindering recruitment efforts by the team (VPSC, 2015). Similarly, sometimes it is difficult to get qualified personnel. The supply therefore becomes inelastic.  What is more, wages and benefits determine how a job is attractive. For instance, a certain group of people will consider the package or benefits and salaries that employers are offering.  The Australian defense team is willing to give better remunerations and renovations as stipulated in their terms of the contract.  However, the jobs that will not offer pleasant opportunities and benefits will attract fewer people to do the work, thereby making the supply low.

The recruitment success of an organization relies on the state of the economy, especially for unique field.  The market environment comprises of many economic and human factors.  Hence, it is essential to understand and identify human element so that the firms may put in place strategies that will be productive and profitable in the long run (Snell, Morris & Bohlander, 2016). People’s choice implies the people have full and transitive preferences and choose the job they want.  Additionally, many people want to be employed in firms that motivate them by giving better remunerations, rewards, and bonuses. Motivation influences people’s decisions on what companies they should work for. Every firm has the motivational factor that influences the people to like it.

Essentially, people’s financial status and demands are vital in deciding on what employment they want to have. In the view of Roberts (2005), if organizations do not offer competitive remunerations then people will go for those few that will be offering benefits that the rest. The implications are that there will the demands of personnel. Finally, prior experience may influence the people choosing on what firms they would want to employ them.. For instance, if the previous employment turned out to be regrettable then it can be difficult for such people to seek for employment. Moreover, consumer’s choice influences the economic prosperity of a firm. In this sense, the upward slope informs the companies that the products they sell are performing well in the market demand regardless of the cost of the product they are selling (VPSC, 2015).  Corporates need to identify a target market and consumers. By doing this, the business owner will be able to provide efficient remunerations to the designated people. Overall, hiring has become an essential component in organizations to achieve a competitive advantage as well as taking market leadership.     

Information and data for labor demands and supply

Organizations need to have accurate information on the nation’s population in terms of gender distribution, career education, level, and qualifications. Therefore, they need to understand the demographics of society before hiring. For instance, the number of qualified personnel in a sector of an economy influences hiring decisions. If there are few qualified personnel, then there will be high demand for these needs to fill the gap. Equally, if there are a high number of persons and specialists, then there will be low demand of such personals. The implication is that there high supply and economical requirements. Also, technological changes and transformations influence on recruitment decisions (Guiso, et. al,, 2017). For instance, due to modernization, innovation, and technological revolutions needed in organizations, the demand for specialist and innovators rise. Thus, organizations must examine data of the people with relevant skills in these fields to make proper decisions before hiring.

Additionally, economic stability, tie GDP, and CPI information is crucial for organizations in making decisions on recruitment. When the GDP and CPI are favorable, then the companies can hire and pay better remunerations. Similarly, when there is low economic stability, then the organizations will not be able to borrow. 


Hiring decisions is influenced by several factors which include economic, political, demographic, environmental, and legal requirements, among othes. Population distribution by age and gender also plays a crucial role in hiring decisions. The Australian Defence workforce, through the recommendation of the White Paper, proposed that a high number of recruitment is essential. The workforce also expects to have the highest quality and innovative staff to help in improving and modernizing the team. Factors such as demographics competencies, the labor market, as well as the capacity to attracts, train, and retain the workforce remain to be key in the implementation of the white paper proposals.


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Guiso, L., Herrera, H., Morelli, M., & Sonno, T. (2017). Demand and supply of populism. London, UK: Centre for Economic Policy Research.

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