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Social Problem3.0 PDF
Social Problem3.0 PDF
Labor is a human capital needed for all socio-economic activities of a particular society for the attainment of progress whether
macro-scaled development (local and national level) or micro-scaled development (individual level). There are at least three broad
classification of labor:
A.) Non-skilled labor (Informal Labor)- a labor that does not necessarily require formal training through the intervention of
educational institution and other government-sponsored skills training institutions such as TESDA, etc.
E.g. Fortune tellers (manghuhula), Quack doctor (albularyo)
B.) Skilled labor (FORMAL LABOR)- a type of labor that requires formal training unlike the non-skilled labor. Furthermore, Skilled
Labor can be divided into three sub-types;
B.1.) Blue-Collar Job (60% physical skills; 40% intelligence)- includes construction workers, PUV drivers, baker, security
officers (guard), embalmer, sales person, janitor (sanitation crew), garbage collector, hotel receptionists, fast food crews, call-center
agents
B.2) White-Collar Job (60% intelligence; 40% physical skills)- these type of labor is highly regulated by the Regulation Body
of a certain Country e.g. PRC (Philippines). This includes teachers, lawyers, news anchors, radio announcers, engineers, nurses,
accountants, civil servants, radio satellite operators, etc.
**Pink-Collar Job- jobs that are exclusive for feminine population. E.g. Caregiver, Kasambahay (Househelper); a
feminist reaction to equalize job opportunities between man and women.
B.3) Entrepreneurial Job (50% intelligence, 50% physical skills)- this labor is usually profit-oriented in nature; hence, this
includes business person not limited to sari-sari store owners, farmers, networkers (networking business). This also includes your
favorite television artists (though not licensed by any regulation body, they are not also bounded in blue-collar labor)
Furthermore, the international definition of employment adopted by the 13th International Conference of Labor Statisticians
(ICLS) is formulated in terms of the labor force framework that is with respect to a short reference period. This includes the two broad
categories of employment:
A.) Paid Employment- includes all employees including members of the armed forces either long-term duration or short-term
duration
B.) Self-Employment- includes all employers (who manage their employees) and own-account workers including producers of
goods for final consumption (entrepreneurs).
BUT: In Philippines, the Supreme Court contemplates 4 kinds of employment as enumerated in the case of LEYTE
GEOTHERMAL POWER PROGRESSIVE EMPLOYEES UNION VS. PNOC-Energy Development Corporation (2011)
1.) REGULAR EMPLOYEE- who have been engaged to perform activities which are usually necessary or desirable in the usual
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business or trade of the employer (E.g. Company Lawyer (YOU)===> Boss Manny (Employer))
2.) PROJECT EMPLOYEE- whose employment has been fixed for a specific project or undertaking, the completion of termination
of which has been determined at the time of the engagement of the employee (E.g. Artist (employee) ===> TV Network (Employer))
3.) SEASONAL EMPLOYEE- who work or perform services which are seasonal in nature and the employment is for the duration
of the season (E.g. Sepulturero (Tomb worker) as employee==> SEASON: All Souls Day)
4.) CASUAL EMPLOYEE- who are not regular employee, project or seasonal employee. (E.g. Part-time faculty)
*In Philippines. The Labor force of the Philippines refers to that part of our population whose age ranges from 15 (can already perform
work) to 64 years old. The members of the labor force are those who are willing and able to work. Those who are actually working and
contributing positively to the economy constitute what we call the participating labor force. (Azarcon,et al., 2008)
Thus the following legal provisions protect the rights of the workers.
1.) Labor Code of the Philippines- also known as the Presidential Decree 442 of 1974 (under Marcos Presidency). the blueprint
(framework) of all Philippine labor laws. This code specifies all working conditions that must be enjoyed by a Filipino laborer. (Minimum
number of working hours: 8 hours/day; 40 hours (public sector); 48 hours (private))
FOR WOMEN: Maternity Leave (6 weeks=42 days); Paternity leave (n<Maternity leave), Article 133
*Legal Age of Employment: 18 years old; Retirement: 65 years old
**DOLE (Department of Labor and Employment)- the administrative agency responsible for strategizing employment in the country.
Current DOLE SECRETARY: Sec. Rosalinda Baldoz
Current DOLE-CAR Director: Dir. Henry Falbuena
2.) Magna Carta of Women- also known as Republic Act No. 9710 0f 2009. It provides protection from any forms of violence, standard
of just compensation, and human treatment among employed women either in private or public sector in the country.
*House Bill No. 1800- introduced by Gabriela Party list. A bill promoting an increase in maternity leave of female laborers from 6
weeks to 16 weeks. (2-weeks prior to the expected date of delivery, and another 4 weeks after delivery)..
3.) Republic Act 7192- also known as Women in Development and Nation Building Act. This law empowers feminine gender as a
co-worker of the masculine gender in nation building. This law also aimed to lessen any form of discrimination against women in a
working sphere.
4.) Magna Carta of the Poor (HOUSE BILL NO.4629)- authored by at least 182 representatives including F. Belmonte, M. Teodoro of
Marikina, R. Del Mar of Cebu City and E. Santiago (1-Sagip partylist) , it aims to achieve the Millennium Development Goals formulate
by United Nations in eradicating poverty, hunger and unemployment in the Philippines. It proposed to establish National Anti-Poverty
Commission (NAPC) assisted by the NATIONAL ECONOMIC DEVELOPMENT AUTHORITY (NEDA) to provide national poverty
reduction plans including right to education among the poor, right to employment among the poor and right to business among the poor.
A.) UNEMPLOYMENT- it is a situation in which a worker of minimum legal age or beyond who is not employed but currently seeking
for employment. It includes the situation that workers who seek work but believe no job is available. Unemployment also refers to a
condition by which individual who has willingness to work and ability to work is disengaged whether in an occupation, profession or in a
business activities. According to Hayek, unemployment is due to discrepancy between the distribution of labor between industries and
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the distribution of demand among their producers.
The international standard definition of unemployment adopted by the 13th ICLS is based on three criteria, which have to meet
simultaneously. According to this definition, the unemployment comprise all persons who were:
1.) without work, i.e. Not in paid employment or self-employment
2.) currently available for work but not employed
3.) seeking for work (willing to work), that is had taken specific steps in a particular period to seek employment
As being measured, unemployment rate is determined by:
U.R.= total number of unemployed persons determined by the institution X 100
Total number of persons that must be in labor force(15-64years)
Types of Unemployment:
*According to market conditions (economic activities):
Frictional Unemployment- also known as transitional unemployment. This type of unemployment results to when people who
have left jobs and are searching for new employment. This also applies to fresh graduates who are seeking for employment as
well and is a result of unbalanced market structure that prevents the job seekers from occupying particular job vacancies that are
available.
Cyclical or Keynesian Unemployment- this type of unemployment includes all people who are not working because firms do not
need their labor due to lack of demand or a downturn in the business cycle. It is the amount of unemployment resulting from
decline in national REAL GDP (gross domestic product) during periods of recession (short-term decline in economic activity) or
depression (long-term decline in economic activity).
Seasonal Unemployment- it is a type of unemployment that results from seasonal patterns of production. This condition is likely
to exist in such productive activities which can be undertaken only during a specific season.
Structural Unemployment- it results from permanent shift in the pattern of demand for goods and services or from changes in
technology so that it is also known as technological unemployment. The structurally unemployed workers have skills that are
not in demand by employers so that for the neglected laborers to be employed, they have to learn new skills or acquire new
abilities to seek employment. This often happens in the long-term rather than short term.
*According to manner of employers:
Voluntary Unemployment- which is attributed to an individuals decision not to be employed because of various external factors
such as family, costs of travel, etc.
Involuntary Unemployment- it exists because of the socio-economic environment which includes market structure, government
intervention and the level of aggregate demand in which the individual worker operates. Involuntary unemployment is not
attributed to individuals decision to stop in labor.
Short Activity: PAIRED LETTERS. For each following situations, put the appropriate letter before the example. F- frictional employment,
C- for cyclical unemployment, S- structural unemployment and Se- seasonal unemployment. Afterwards, determine if it is voluntary
unemployment (VU) or involuntary unemployment (IU).
________ A literary editor decided to leave her job in New York to look a new job in the Philippines since her family is there
________ Advances in farming technology makes the assembly-line agricultural workers obsolete
________Mr. Camot has currently no job since his work as lantern-maker is only profitable during Christmas season yet he is willing to
wait for the next season to earn money.
________A computer programmer did not expect to lose his job but unfortunately he was laid off because of recession
________A skilled glass maker is aware that he will be unemployed next week when a new machine arrive to do the labor faster. As a
consequence, he decided to attend a livelihood seminar in order to establish a business in the future to earn continuously earn money.
________An individual who is a fresh BA Computer Engineering graduate refuses to work at SUNNY Company due to below minimum
wage, thus he is seeking employment to other company.
CAUSES OF UNEMPLOYMENT:
1.) Demographic Characteristics of Labor- refers to the age, qualification and behavior of participating labor force.
2.) Poor quality of labor - individual-level, laborers did not allocate maximum efficiency in labor
3.)Geographic distribution of labor- individuals who live in an agricultural location tends to become unemployed in farming activities
whereas those who reside in industrialized place tend to become unemployed in manufacturing or sales activities.
4.) Mobility of labor- Unemployment is greatly felt in place where most people are highly condensed and they compete for employment
E.g.: In Philippines, the following regions indicate the highest rate of unemployed people (SWS survey)
National Capital Region---------------- 9.3 %
CALABARZON--------------------------- 8.6 %
ILOCOS REGION----------------------- 8.5%
CENTRAL LUZON---------------------- 8.5%
Effects of Unemployment:
A.) Direct Effects- these effects are vividly and immediately observable such as;
1.) Poverty among families
2.) Lose of Income resulting to starvation
3.) Failure to meet financial obligations
4.) Failure in National Productivity
5.) Lowering of Self-Confidence
B.) Indirect Effects- these effects are felt gradually by the business sector, the government and the individual in the long run.
1.) Loss of tax revenue (Government)
2.) Adverse health and psychological effects (Individual)
3.) Loss of human capital (Business Sector)
*PHILIPPINE SETTING: Tabular Presentations of Employment and Underemployment in the Philippines according to joint Philippine
Statistics Authority (PSA) and International Labor Organization (ILO).
Natural Unemployment Rate in the Philippines: 4%; the government can still tolerate this condition and can provide subsidies
TABLE 1:
Ages
15-24 *1.447 Million 1.432 Million 1.368 Million *The employment rate is estimated at 93.4 % (nearly
25-54 *1.420 Million 1.405 Million 1.293 Million 40 million including at least 2 million OFW) in
55-above *0.133 Million 0.132 Million 0.114 Million January, higher than 92.5 % in 2014. There were at
least 38 Million people employed: 54.6% worked in
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*estimated the service sector, 29.5 % in agricultural sector and
15.9% in industry sector.
IN WORLDS PERSPECTIVE: The Philippines is better compared to Great Britain and United States which both have an
unemployment rate of 7.5 % as of 2013. Among countries with the highest unemployment rates are: EGYPT (12.7%), GREECE (27.6%)
and SPAIN (27.6%).
Lets examine:
Table of Minimum Wage Rates By Sector And Region, Philippines
REGION Indicator (SECTOR)
Non-Agriculture Service Sector Industry Sector Agriculture Sector
(White-Collar Job, Paid
Employment)
NCR P456.00 + 15.00 P419.00 + 15 P419.00 + 15.00 P419.00 + 15.00
(establishments (Manufacturing)
employing at least 15
workers or less)
CAR P280.00 + 15.00 280.00 + 15.00 280.00 + 15.00 262.00 + 15.00
(Baguio City, La (Baguio City, La (Baguio City, La (Baguio City, Tuba,
Trinidad, Tuba, Itogon, Trinidad, Tuba, etc.) Trinidad, Tuba, etc.) etc.)
Sablan) 260.00 : 10 workers or
less
P263.00 + 15.00 263.00 + 15.00 246.00 + 15.00
(Mt. Province, Abra, 263.00 + 15.00 (Mt. Province, Abra, (Mt. Province, Abra,
Kalinga, Ifugao, (Mt. Province, Abra, Kalinga, Ifugao, etc.)
Kalinga and Apayao) Kalinga, Ifugao, Kalinga and Apayao
Kalinga and Apayao
239.00: 10 workers or
less
ILOCOS REGION P205.00 + 15.00 205.00 + 15.00 253.00 + 15.00 233.00 + 15.00
(small-scaled) (Mining and Quarrying) (including
aquaculture)
253.00 + 15.00
(Large-scaled)
CENTRAL VISAYAS P210.00 + 15.00 220.00 + 15.00 253.00 + 15.00 233.00 + 15.00
(tourism-influence)
CENTRAL MINDANAO P210.00 +15.00 N<200.00 + 15.00 230.00 + 15.00 230.00 + 15.00
(due to security threat)
*15.00 pesos addition to minimum wage as approved by the Philippine government this 2015.
*In Baguio City: Minimum salary: Php 7,000-8,000 =========================> Standard of Convenient living Costs
(3-members): Php 13,000-Php 15,000
Two Kinds of Underemployment:
A.) Visible Underemployment- is a type of underemployment wherein the employed person, preferably a part-time employee who
worked less than 40 hours (public sector) or less than 48 hours (private sector) a week is wanting additional hours of labor.
B.) Indivisible Underemployment- is a type of underemployment wherein the fully employed person (working for 40-48 hours a week)
still wants additional work to finance his/her needs.
Situations:
Mr. Macipag, a computer layout artist in PACIFICA Comics, is earning at least 1000 pesos a day and he is satisfied with his
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income. He only consumed at least 5 hours a day for that job or equivalent to 30 hours a week. Will you considered Mr. Cipag
underemployed?
Ms. Ayat, a full time civil servant in the provincial office of Pangasinan, is earning at least 18,000 pesos a month. However after
her work at 6 p.m., she accepted online tutorial sessions for English, Philippine history and Business Mathematics at the rate of
300 an hour per tutee. Do you consider her as underemployed?
Ms. Veki, a part-time instructor at Saint Luisito Agapito College, earns at least 12,000 pesos a month. In order to finance the
demand of her large family, she still needs to work for additional hours as field research assistant of DSWD to earn additional 300
pesos a day. Is Ms. Veki underemployed?
STATISTICAL PRESENTATION
Employment Rate Underemployment Rate Unemployment Rate
(From Employment Rate)
93.4 % 17.3 % 6.6% *Notes: The underemployment
rate as of first quarter of 2015 is
17.3 %. However in 2014, the
underemployment rate was 18.2
% and in 2013 was 19.2 %.
VS.
Over-employment (Inadequate employment related to excessive hours)- comprises all employed persons who want to seek work,
either the same job or in another job, less than they actually worked during the reference period.
IV.) JOB MISMATCH AS A SOCIAL PROBLEM
Job-skill mismatch (Skill-related inadequate employment)- is defined as a condition by which an individual who earned a
particular aptitude through formal education cannot able to seek employment corresponding to the acquired skills; thus, the individual
will be forced to employ in another field without considering the real skills imbibed just to earn money for daily needs. It signifies poor
utilization of human capital.
Situations:
. BS Industrial Engineering graduate ==============> Job: Mall cashier
BS Accountancy graduate ==============> Job: Call-center agent
Assoc. Course in Culinary Arts =============> Job: Chef at Hotel Venus
BA Political Science graduate ==============> Job: Municipal Civil Servant
BS Social Work graduate ==============> Job: Local DSWD employee
(Which is/are job-skill mismatch/es?)
According to Alvin Ng, Department of Economics-UST: Labor mismatch impacts the economy in such a way that the time spent
pursuing a particular course in college becomes a futile exercise for the student and brings about an oversupply of talents to a certain
profession. The problem is cultural mindset, of need to become a professional with specialized skills regardless if there is an existing
demand in the economy.
E.g. Society (needs 2 million nurses) ========================> 5 million Nursing graduates (2-million;hired *others: 3 million?)
Society (needs 3 million teachers) =======================> 10 million (BSED, BEED graduates); 3 M hired; 7 million?
*Effects: Labor mismatch, extreme competition (individual level), brain-drained
STATISTICS: According to Philippine Statistics Authority headed by Lisa Grace S. Bersales, PhD, 22.4% of unemployed individuals
were college graduates (2014) and 32.7 % were high school graduates.
To MITIGATE THIS PHENOMENON: The labor force has to strike a balance between individuals with basic skills and those special
skills in certain professions. The implementation of K+12 educational system-the program meant to align the Philippines with the
international 12-year basic education program is the first step to solve labor mismatch according to Ng. The assumption is that K+12
graduates can take care of basic jobs (e.g. In manufacturing process) that do not need highly technical skills such as metagenomic
analysis (BS Biology), political methodology (BA Political Science), Behavioral analysis (BS Psychology), etc.
IN GENERAL:
TYPOLOGY OF DISADVANTAGED WORKERS (as adopted in Cabegin, Dacuycuy and Alba, 2010)
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Openly Unemployed Discouraged Workers Underemployed workers Full-employed vulnerable
workers
Persons who comprise those Persons who are without work Persons who are reported Persons who do not share the
who are without work but are but not seeking work because waiting additional hours to work same entitlements or protection
available and actively seeking they believe that there is none in the present job or through an accrued to regular workers.
work available additional job.
The ILO-IPEC defines child labor more categorically and comprehensively as work situations where children (as young as 5 years old)
are :
1.)compelled to work on a regular basis to earn living for their families and as a result are disadvantaged educationally and socially
2.) working in conditions that are exploitive and damaging their health including mental development
3.)forced to lead prematurely adult lives
*The Philippine government had as yet not signed the ILO Convention No. 138 on the minimum employable age. In fact, child labor is
most concentrated in Asia and Africa which account for more than 90% of total child employment (10 years-14 years old)
The Philippine law (R.A. 7658 Anti-Labor Law) defines child labor as the illegal employment of children below the age of 15, where
they are not directly under the sole responsibility of their legal guardian, or the latter employs other workers apart from their
children who are not members of their families, or their endangers their life..
DOLE criteria of Child Labor ( Department Order No. 4, 1999)
a) Ages under 18 whose work causes exposure to physical, psychological or sexual abuse (cyber pornography)
b) Whose work underground or underwater or at dangerous heights
c) Work with dangerous machinery, equipment and tools or which involves manual handling or transport of heavy loads
d) Work in unhealthy environment
e) Work under particularly difficult condition
Situations:
Nonong, a 10-year old orphan (mother and father were deceased), is selling newspapers, cigarettes and candies along the street
to earn additional income as commanded by his uncle. Given this situation, he became out-of-school youth. Will you consider
Nonong a child laborer?
An 8-year old child star Cutie Misty is earning at least 1 million a month for the various endorsements, tv soap opera, etc.
Because of this, the DOLE helped her in managing her income by allocating 25% of the money for her educational trust fund, 10%
for her insurance, etc. Cutie Misty is a major provider for her family for she helped her parents in building their dream house. Do
you consider Cutie Misty a child laborer?
Nanoy, a 9 nine-year old child of Mang Ernesto who is a farmer, decided to help his father in the farm during Saturdays since he
has no classes. Mang Ernesto agreed with Nanoy but being a father, he ensured that Nanoy, is always in good condition in
helping in the farm works by giving him gloves, enough water for hydration, enough food to eat, etc. Nanoys farm works include
planting crops, lifting loads (harvested crops in sacks) and land tilling. Is Nanoy a child worker or a child laborer?
OR
HIRING HOUSEHELPER : In Philippines, KASAMBAHAY LAW
as authored by JV Ejercito
Other concern: AGING OF LABOR- age as key determinant for employment. In Philippines, there is a senate bill proposed by Sen.
Pia Cayetano regarding the employment of well-abled senior citizens or those who are at least 40 years old and above.
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In 2010, the Department of Labor and Employment reports that the number of establishments resorting to outsourcing or contracting
out of job, work or service was placed at 2,471. This figure represents 10.4 % of the estimated 23,723 business establishments
nationwide. (Resureccion and Rosario, 2012)
LEGAL ASPECT: Cite Less-than-six months contract periods: Is retail industry circumveting the law? The Philippine Case by
Resureccion and Del Rosario (2012)
Historical Trend: On February 21, 2002, Department of Labor and Employment promulgated the Department Order No. 18-02
specifying the implementing rules of 106-109 of the Labor Code as legitimizing contracting and subcontracting-which undermine
workers rights to security of tenure.