The World Book Encyclopaedia describes a Depression, in economics as being a deep, extended slump in total business activity. Buying and selling drop during a depression causing a decline in production, prices, income, and employment. Money becomes scarce, many businesses fail and many workers lose their jobs. This kind of depression can hit a single industry, a region, a nation, or even the world. This all repeats itself in the depression cycle and occurs when unemployment rises. Unemployed workers have less money to spend, leading to further drops in sales, production,
income, and employment. The slump feeds on itself over and over again, becoming progressively worse until business activity eventually picks up.
The Great Depression began in October 1929, when values of stocks and shares in the United States dropped rapidly. It then continued on for 9 years when it finally ended in 1938. The worst unemployment rate of the Great depression came in 1932 when just over 29% of Australia's population were out of a job.
After the sudden rise of 3.8% in 1927, the Unemployment rate grew steadily and when the Great Depression started in 1929 it had risen by just under 4% in nearly all the states of Australia, except for Queensland that had coped the best and only risen by 1.2% from 5.9% to 7.1%, Tasmania that had only risen by 2.3%-11.1% to 13.4% and South Australia that had been hit the most severe of all states by the Great Depression, with a record high rise of 8.5%, from 7.2% in 1927 to 15.7% in 1929. During the next year of 1930, the number of unemployed jumped again quite dramatically as a result of the economic collapse in Australia and by the end of 1930 almost 20% of Australia's workforce were jobless, as a whole, Victoria,