Labour Market Shortages

National Cabinet is to meet on Monday 10 July 2023 to review the Australian government's initiative to offer wage subsidies ranging up to $10,000 to eligible businesses who hire new staff. You are part of a committee led by the Minister for Employment and Workplace Relations- The Hon Tony Burke and have been asked to discuss the impact this wage subsidy has on the Australian labour market which has an existing binding minimum wage.

Specifically, the National Cabinet would like to know whether the government should continue to financially support this initiative or instead halt any further financial support and to return to its existing state with a binding minimum wage in place.

, you should discuss key concepts such as Demand, Supply, Subsidy and Unemployment. Your demand and supply analysis framework should represent the labour market with a binding minimum wage imposed.