基本上，有四个与失业有关的主要宏观经济学理论。这些是（Seymour 2010）：1）内幕外人理论; 2）效率工资理论; 3）工作不匹配和搜索理论; 4）结构性失业。在这种情况下，结构性失业理论被认为是最适合进一步分析的。
Basically, there are four main macroeconomic theories related to unemployment. These are (Seymour 2010): 1) Insider-outsider theory; 2) Efficiency wage theory; 3) Job mismatch and search theory; and 4) Structural unemployment. In the context of the case, structural unemployment theory has been identified as being most appropriate for further analysis.
Structural unemployment occurs when there is difficulty in labour market for providing jobs to everyone who are willing to work. This difficulty takes place due to the presence of a mismatch amongst the skills required for a particular job and skills possessed by the unemployed worker. Structural unemployment tends to last for a longer duration of time in comparison with frictional unemployment. This is what is actually happening in the unemployment case of Australia (Shawn 2009). The main reason behind this type of unemployment can be that certain resources, in this case labour, are provided training sessions for a particular type of work. However, the different job vacancies may require skilled labours for a different kind of job. The employee may not be able to work in accordance with the job requirements.
As there is a lack of congruency within the skills required and skills possessed, there is an increase in the level of pressure on the current employees. This basically results in the increase of unpaid overtime hours.