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IN PHOTO: A pedestrian walks past a man holding a sign as he begs for money on a main street in central Sydney March 18, 2015. Australian employment rose moderately in February while the jobless rate ticked down from a decade high, yet faster growth will be needed to stop the unemployment rate from rising further over time. The sign reads, "Homeless. Thanks for your compassion. God Bless." REUTERS/David Gray

Australia is facing a crisis of economic, physical and mental wellbeing with long-term unemployment rising to a 16-year high. This figure is three times higher than in 2008, when the global financial crisis had impacted the economy.

The long-term unemployment is defined as the number of people who have been out of work for more than a year. According to the Bureau of Statistics, the number has increased by 18 percent to reach 188,000. The Fairfax Economic Wellbeing Index, which uses a range of indicators to measure wellness, show that the wellbeing cost of long-term unemployment has reached over $3.9 billion. "In the last quarter, the rise in long-term unemployment cost the economy more than the fall in the terms of trade," says Nicholas Gruen, economists and the index author.

The government has been taking concerted efforts to tackle unemployment among young Aussies. The federal budget included $330 million Youth Employment Strategy that will target young people who are vulnerable to long-term unemployment and its after effects. "The new measures will focus on making job seekers more employable, reducing the costs of taking on new staff, and bringing job seekers and employers together," says assistant employment minister, Luke Hartsuyker, as reported by Sydney Morning Herald

Gary Morgan of the Roy Morgan Research feels that the figures are still on the higher side. “Today’s estimates mean total Australian unemployment and under-employment of 2.31 million (18.5 percent of the workforce) has now been above 2 million Australians for 42 straight months – exactly 3 ½ years,” he said

Prime Minister Tony Abbot came under fire earlier this May for suggesting “try before they buy” before hiring long-term unemployed people. According the Guardian, he was referring to the initiative allowing unemployed people to work with a private enterprise for six months without losing unemployment benefits. As unemployment figures remain the same, Australia needs to combat associated physical and wellbeing costs.

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