UNEMPLOYMENT

Group 1:
Elizabeth Gopio
Irene Jan Celiz
Asher Escares
Edlyn Joy Tamayor
Thomas Mijares

Unemployment
Unemployment is when a person who is actively

searching for employment is unable to find work.

The most frequently cited measure of unemployment is
the unemployment rate which is the number of
unemployed persons divided by the number of people in
the labor force.

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Types of Unemployment:
Frictional unemployment
Structural unemployment
Cyclical or Keynesian unemployment
Seasonal unemployment

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Frictional Unemployment
Frictional unemployment occurs when a worker moves

from one job to another.

It is a result of imperfect information in the labor market,
because if job seekers knew that they would be employed
for a particular job vacancy, almost no time would be lost
in getting a new job, eliminating this form of
unemployment.

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Structural unemployment
Structural unemployment arises when the qualification of

a person is nor enough to meet his job responsibilities.

Conversely, structural unemployment arises when the
salary offered to a person falls short of the minimum wage
that can be paid for the concerned job.

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Cyclical unemployment
Cyclical or demand deficient unemployment occurs when

the economy is in need of low workforce. The demand for

labor increases with the economy in the growth phase.
Again, when the economy passes through depression,
demand for labor decreases and the extra workers are
released as the unemployed labor force.

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Seasonal unemployment
Seasonal unemployment occurs when an occupation is

not in demand at certain seasons.

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Causes of Unemployment

They quit their position and are looking for a new one.
They were laid off due to lack of work and haven't yet

been rehired.
Their company reduced the work force, and they are
seeking a new position. This can be due to a local
condition, when the company closes a plant or division, or
a national condition, when the economy slows and many
companies reduce their work force.
Changes in tastes as well as alterations in the climatic
conditions. This may in turn lead to decline in demand for
certain services as well as products.

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Causes of Unemployment
They have recently returned to the work force - perhaps

from pregnancy or attending school - and haven't yet

located a position.
The need for their skill set has gone down, and there are
limited positions available, which may lead to
unemployment until they train for a new position.
Technology has reduced the need for their type of
position.
Disability

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Effects of Unemployment in our Economy

Spending Power
Unemployment financial costs
Reduced spending power of the employed
Recession

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Effects of Unemployment (others)

Mental health: Mental health problems like: Law self-

confidence, feeling unworthy, depression and

hopelessness. With the lost income and the frustration
involved in it, the recently unemployed may develop
negative attitudes toward common things in life and may
feel that all sense of purpose is lost. Frequent emotions
could be low self-esteem, inadequateness and feeling
dejected and hopeless.
Health diseases: The unemployment overall tension can
increase dramatically general health issues of individuals.
Tension at home: Quarrels and arguments at home front
which may lead to tension and increased numbers of
divorces etc.
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Effects of Unemployment (others)

Political issues: Loss of trust in administration and the

government which may lead to political instability

Tension over taxes rise: Unemployment also brings up
discontent and frustration amongst the tax paying citizens.
In order to meet the demands of the unemployment fund
the government many a times may have to increase the
taxes thus giving way to restlessness amongst the tax
paying citizens.
Insecurity amongst employees: The prevailing
unemployment and the plight of the unemployed people
and their families may create fear and insecurity even in
the currently employed people.
Crime and violence: Increase in the rate of crime.
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Effects of Unemployment (others)

Suicide cases: Increase in the rate of suicide attempts

and actual suicides as well.

Social outing: Unemployment may bring a decrease in
social outings and interactions with other people, including
friends.
Stigma: Unemployment brings with more than just no
work. It also brings with it the disgrace that the person
has to bear. Nobody likes to be termed as unemployed.
Lose of skills usage: The unemployed is not able to put
his/her skills to use. And in a situation where it goes on for
too long the person may have to lose some of his/her
skills.
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Solutions in Solving Unemployment

Problem:
1. Full development of small-scale, labor-intensive
2.
3.
4.
5.
6.

industries
Choosing appropriate labor-intensive technologies of
production
Creating a more direct link between education and
employment
Reduce rural migration
Remove capital intensive bias
Employment strategy package

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Philippines Unemployment Rate 1994-2015

Unemployment Rate in Philippines decreased to
6 percent in the fourth quarter of 2014 from 6.70
percent in the third quarter of 2014. Unemployment
Rate in Philippines averaged 8.90 percent from 1994
until 2014, reaching an all time high of 13.90 percent in
the first quarter of 2000 and a record low of 6 percent
in the fourth quarter of 2014. Unemployment Rate in
Philippines is reported by the National Statistics Office
of Philippines.

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Statistical updates: Philippines

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Statistical updates: Philippines

Actual 6.00
Previous 6.70
Highest 13.90
Lowest 6.00
Dates 1994-2014
Unit - Percent
Frequency Quarterly

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Statistical updates: Philippines

In Philippines, the unemployment rate measures the
number of people actively looking for a job as a percentage
of the labour force. This page provides - Philippines
Unemployment Rate - actual values, historical data,
forecast, chart, statistics, economic calendar and news.
Content for - Philippines Unemployment Rate - was last
refreshed on Monday, March 2, 2015.

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Philippines Jobless Rate Down to Record Low

Philippines unemployment rate decreased to 6.0 percent in October of
2014 from 6.7 percent in July and hit a record low, as more people were
employed in the services and agriculture sectors. Figures for the province of
Leyte which was hit by typhoon Haiyan are not included.
Among unemployed people, 65.2 percent were males. The age group
15 to 24 years old accounted for 49.4 percent of total unemployed, while the
age group 25 to 34 accounted for 30.2 percent. By educational attainment, 21.6
percent were college graduates, 13.5 percent were college undergraduates,
and 33.3 percent were high school graduates.
Among regions, the National Capital Region (9.8 percent), Central
Luzon (7.4 percent), and Calabarzon (7.1 percent) showed unemployment
rates higher than the national figure (6.0 percent).
Meanwhile, the employment rate is estimated at 94.0 percent in
October of 2014, up from 93.6 percent a year earlier. There were 38.8 million
employed people: 53.7 percent worked in the services sector, 30.8 in
agriculture and 15.6 percent in industry sector.
The country's jobless rate has been in a downward trend since the
fourth quarter of 2013.
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Statistical updates: Asia

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Statistical updates: World

Top 20
countries with
Highest
Unemployment

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Rank

Country

Jobless Rate

Greece

27.4%

Spain

27.2%

South Africa

25.2%

Nigeria

23.9%

Croatia

19.6%

Portugal

17.7%

Cyprus

15.6%

Dominican Republic

14.7%

Slovakia

14.3%

10

Ireland

13.7%

11

Poland

13.5%

12

Slovenia

13.3%

13

Lithuania

13.1%

14

Eurozone

12.2%

15

Egypt

12.0%

16

Italy

11.9%

17

Bulgaria

11.6%

18

Finland

10.8%

19

France

10.8%

20

Columbia

10.7%

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Videos:
Unemployment rate:
https://www.youtube.com/watch?v=K1J3diJsD9U

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