INFLATION, LABOR

AND UNEMPLOYMENT
CHAPTER 11
LABOR, ONE
OF THE FOUR
FACTORS OF
PRODUCTION

RICA MAE T. ABALOS

 LAND
is is short for the natural
resources or raw materials
in an economy,
 CAPITAL
This is an abbreviation of the
capital goods, such as
machinery, equipment, and
chemicals, that are used in
production.
ENTREPRENEURSHIP
This is the drive to profit from innovation.
 LAND

Four Factors
CAPITAL of Production LABOR

ENTREPRE
NEURSHIP
 Labor and Labor Problems

Labor force refers to the available human resources, whether

employees or unemployed, including those who are at least 15 years
old. If an individual is a high school graduate, he/she is already part of
the labor force.
Labor-is the amount of physical, mental, and social effort used to
produce goods and services in an economy.

Unemployment - Unemployment occurs when a person who is

actively searching for employment is unable to find work.

Labor force -Labor force is the total number of people who are
currently employed plus the number of people who are unemployed
and seeking employment.
 The real unemployed rate
How labor measures everyone who would like

is a full time job. It includes the

discouraged workers. Its also
measured? includes those who are working
part time only because they cant
get a full time job.
Unemployment Rate
- The unemployment rate is an indicator that, in the Economy,
allows us to know the unemployment rate, that is, the number of
people who, having the necessary conditions of age, health, and
willingness to work, are not currently occupying a job.
TYPES OF LABOR
Labor can be
categorized in
many different
ways • Skill labor
• Unskilled labor
• Contract labor
• Slave labor
UNEMPLOYMENT
Causes:

-A recession and the resultant cyclical unemployment

caused underemployment as well. When workers
outnumber jobs, they will take anything they can get
to pay the bills.

-Technological change also causes underemployment.

Effects:

•Higher poverty levels.

•Workers lose the ability to update their
skills with on-the-job training.
•Younger people may find they never get a
good start to their career. Forced to take
jobs that are beneath their skills, they don't
get on the right track.
 Overeducated and Underemployed

Underemployment has a more adverse

effect on those with college or post-
graduate degrees