Introduction<br />Our country faces problems like any other country in the world. Poverty, crimes left unsolved, environmental issues, etc. Most of these were easy to solve if it was immediately prevented. But these were not prevented, and many more problems stemmed from this. One of this problems is unemployment. But what is unemployment?<br />
Unemployment, as defined by the International Labour Organization, occurs when people are without jobs and they actively looked for work within the past four weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force.<br />Another definition, an economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is expressed as a percentage of the total individual work force. The level of unemployment varies with economic conditions and other circumstances.<br />
This does not include:<br /><ul><li>Underemployed workers</li></ul>A situation in which a worker is employed, but not in the desired capacity, whether in terms of compensation, hours, or level of skill and experience. While not technically unemployed, the underemployed are often competing for available jobs.<br /><ul><li>Part time workers</li></ul>A situation in which a worker is employed, but not for full time.<br />Why does Unemployment Exist?<br />In many markets, prices adjust to the market equilibrium price and quantity, and no prolonged periods of shortage or surplus occur.<br />Three reasons for the failure to set equilibrium wages but are adjusted higher than equilibrium price.<br /><ul><li>Minimum Wages
Fractional Unemployment</li></ul> <br /> -occurs when people voluntarily leave one job in search of a different job. These people are unemployed because they are temporarily between finding a suitable job.<br />
<ul><li>Seasonal Unemployment</li></ul> - occurs because some jobs, by their very nature, are tied to the seasons of the year.<br /> <br /><ul><li>Structural Unemployment</li></ul> -unemployment resulting from changes in the basic composition of the economy. These changes simultaneously open new positions for trained workers.<br /> <br /><ul><li>Cyclical Unemployment</li></ul> -occurs as a result of changes in the business cycle.<br /> <br /><ul><li>Technological Unemployment</li></ul> -this can be seen where firms use capital investment in technology to reduce their reliance on unskilled or semi-skilled labour.<br /> <br />
<ul><li>Residual Unemployment</li></ul> -some of the people will not even be capable of holding permanent job by virtue of some physical or mental disability.<br /> <br />Measuring Unemployment Rate<br /> <br />The unemployment rate is the percentage of the labour force that is not working.<br /> <br />Unemployment rate = 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝑼𝒏𝒆𝒎𝒑𝒍𝒐𝒚𝒆𝒅𝐍𝐮𝐦𝐛𝐞𝐫 𝐢𝐧 𝐥𝐚𝐛𝐨𝐮𝐫 𝒇𝒐𝒓𝒄𝒆<br /> <br />Calculating Unemployment<br />Labour force = Number of Employed + Number of Unemployed<br /> <br /> <br />
Economic Problems of Unemployment<br /><ul><li>Cost to the Inland Revenue:</li></ul>Each unemployed person is said to increase the cost of the Inland Revenue in terms of allowance.<br /><ul><li>Unemployment Benefit:</li></ul>Payments made by the state or other authorized bodies to unemployed people.<br /><ul><li>Loss of tax from unemployed:</li></ul>Unemployed individual is not earning so government has lost important tax revenue.<br /><ul><li>Cost of special schemes:</li></ul>Government employment schemes are offered for unemployed to help them get job.<br /><ul><li>Waste of scarce resources</li></ul>Labour, unlike some raw materials, cannot be stored for future use. Unused labour resources are lost for all times.<br />
<ul><li>Inequality of Income Distribution</li></ul>The gap in the level of standards of living between those out of work and those in work widens during period of severe unemployment.<br />Social Problems<br /><ul><li>Political Instability for government
Decrease in standard of living</li></li></ul><li>Solutions for Unemployment<br />Fractional Unemployment<br />-fractional unemployment is among the types of unemployment, it is not considered to be bad.<br />Reducing Fractional Unemployment:<br /><ul><li>Establishing a computerized national job bank.
Proper educational advice to college students in terms of the job demands and skills required to get job faster.
Attempts to reduce the difference between the gross income and the net income.</li></li></ul><li>Seasonal Unemployment<br /> -seasonal unemployment increases rate more than any other type of unemployment.<br />Reducing Seasonal Unemployment:<br /><ul><li>Advertising in the off season.
Introduction of novel items to increase sales.</li></li></ul><li>Structural Unemployment<br /> -as this type of unemployment exist when an economy’s labour is immobile.<br />Reducing Seasonal Unemployment:<br /><ul><li>Higher level of initial education so that workers are more flexible and able to adjust when conditions change.
Providing facilities for the retaining of workers whose skills are no longer in demand.
Introducing labour market reform is by using labour market programs.</li></ul>Cyclical Unemployment<br /> -cyclical unemployment exists because of a decrease in aggregate demand.<br />Reducing Seasonal Unemployment:<br /><ul><li>Stabilization policies and government policies intended to maintain full employment and a reasonably stable price level can be used.
Expansionary fiscal and monetary policies can be used.</li></li></ul><li>Technological Unemployment<br /> -is a self-curing because unskilled labour will be replaced by skilled labour.<br />Reducing Seasonal Unemployment:<br /><ul><li>Retaining programmes should be provided.
An incentive for the unemployed to study further can be provided.
Preventing trade unions from keeping wages artificially high.
Encourage performance related pay.</li></ul>Residual Unemployment<br /> -disabled workers can also be utilized. In some fields they provide better result than normal labour.<br />Reducing Seasonal Unemployment:<br /><ul><li>Government can set up centres for those disabled workers to do some art or handicraft work.
Government can provide tax incentives to company for restructuring their organization to accommodate disabled people.</li></ul> <br /> <br />
Conclusion<br />The more probable cause of unemployment in the Philippines is the unavailability of jobs provided. With a growing population of about a 8 million, millions needed jobs and only few can sure provide one. The lack of investors and businesses that could provide good jobs for the Filipino people is one key factor in the growing unemployment in the Philippines.But probably, one cause of unemployment in the Philippines may be lack of education. With the increasing demands of the fast developing world, it is really hard to find jobs when you are not a graduate of a particular skill or course. Though the Philippines is a literate country, its not enough to be able to reach the qualifications of most in-demand jobs because even mere sales ladies nowadays are required to have at least 1-2 years in college. We are facing a competitive world and its a must to reach the norms of development. Thus, a high educational attainment, which most Filipinos lack, is one way to uplift the unemployment rate of the country.<br />
Thank you!<br />Presented By:<br />Ilisan. Christina Pauleen<br />Ginez, Abbigail Jane<br />Embudo, Monique Rochelle<br />Hilao, Renz Fredrick<br />Hernandez, Paolo Augustus<br />Fua, Mark Jayson<br />Madlangbayan. Jose Ernesto<br />