Question

Using macroeconomic theories, can you predict may happen to the International Education sector if Australia’s rate of unemployment increases to 10%?

Answer 1

International Education sector involves movement of ideas, skills, education of individuals, and abilities to some other nation. International education system is a globalization phenomenon that includes exchange of education between nations.

The level of education in a country is an important factor that decides the level of employment in the country. The demand and supply of employment in a country is expected to be equal if the level of education in that country is high.
Every country wants the level of employment to be high so that its economy can perform better. The increase in the rate of unemployment in country A will have an opposite effect in the international education sector. Increase in the rate of unemployment indicates that the international education system will have a negative impact.

When the level of unemployment in country A increases, the level of income will also fall and thus will have less resources to study and get education in the domestic country. Also they will have chances to get job in future that will reduce the incentive to get more education. Therefore, more people will move to other countries in the search of jobs and education.