Review of Related Literature

By spring 2020, more than half of the world’s population had experienced a lockdown with strong containment measures.
Beyond the health and human tragedy of the coronavirus, it is now widely recognized that the pandemic triggered the most
serious economic crisis since World War II. Many economies will not recover their 2019 output levels until 2022 at the earliest
(OECD, 2020).

The economic crisis has caused a substantial rise in unemployment, leaving some parts of the country such as the industrial
Midwest to grapple with unemployment rates of over 16 %. The economic crisis has helped to raise the level of financial
uncertainty for individuals and families to new heights, particularly for middle-class families. (United States Bureau of Labor
Statistics 2010)

A growing literature suggests that economic recession may be particularly difficult for young adults who will so enter the
workforce. For example, using data from the 1980s United States’ economic recession found that graduating from college in a
bad economy had large, negative, and persistent labor market consequences including negative short- and long-term wage
effects and lower-level lifetime occupational attainment, Kahn (2010)

Amid the most severe economic and fiscal crisis that most countries are facing today, the emerging need for economic
stabilization of national economies has outweighed regional development policy issues. Output and employment are the
most commonly used indicators for quantifying growth and downturn of economic activity. (Kallioras, 2014)

Another strand of research on regional impacts of economic crisis which has received growing attention is related to the
regional impacts of unemployment. OECD (2011b) highlights the differentiated impact on the loss of jobs within OECD
countries due to economic recession concluding that “three-fourths of OECD regions that showed employment growth
between 1999 and 2007 shifted to an employment decline between 2008 and 2009 [whereas] disparities in job losses
have increased OECD (2011)

The global COVID-19 pandemic leads to the fatal economic condition of Asian countries and brings miserable situations to
the rural farmers. According to Awad and Konn (2020), this pandemic greatly hits the developing countries and creates an
economic slowdown in industry and agricultural sectors. It could be seen in the native place of Maguindanao province where
most farmers faced challenges with their farming activities amidst pandemic. Some of these are the loss of marketable
disposal of their harvest due to travel retsrictions, low price of output, lacking of laborers, and etc.( Awad and Konn 2020)

The years of struggle have put on hold development in the region and resulted in BARMM lagging in most development
indicators in the Philippines. In 2018, the Philippine Statistics Authority (PSA) reported BARMM as having the highest
poverty Incidence (53.6%) among families in the country ((Sharma, et al 2022)

Economic crisis triggers negative social phenomena across all levels of economic function. Indicatively, the country under
crisis suffers reduced GDP (Gross Domestic Product – the total amount of values produced in economy in a year) that is
usually translated into potential personnel reductions (or in the best case there are no new hirings), decreased salaries.
The labour market outcomes for native- and foreign-born adults during the first year of the COVID-19 pandemic
vary considerably across countries -- with inequalities in employment even falling in some cases compared to
2017.

Crises often have negative consequences including a decrease in demand and revenues,
rising costs, the disruption of normal operations, failings in decision making and
communication activities, staff lay-offs, the cancellation of investments, stressful living and
working environments, and the closure of organizations (Kash and Darling 1998)

Above all, there is an adverse impact

on living
standards as increasing number of
people are
losing jobs, wages fall, poverty and
inequality
rates rise, and businesses shut down
or file
bankruptcies. Because the disruption
directly
impacts real economic sector,
recovery to pre-
crisis levels is often a long one
(ranging between
months and decades) and crisis
responses have
varied.
Above all, there is an adverse impact
on living
standards as increasing number of
people are
losing jobs, wages fall, poverty and
inequality
rates rise, and businesses shut down
or file
bankruptcies. Because the disruption
directly
impacts real economic sector,
recovery to pre-
crisis levels is often a long one
(ranging between
months and decades) and crisis
responses have
 varied.
above all, there is an adverse impact on living standards as increasing number of people are
losing jobs, wages fall, poverty and inequality rates rise, and businesses shut down or
filebankruptcies. Because the disruption directly impacts real economic sector, recovery to
pre-crisis levels is often a long one (ranging between months and decades) and crisis
responses have varied. (Gevorkyan, 2015)

Thus, even if preliminary survey data derived from the Community-based Monitoring System indicate a moderate
adverse effect on the income and employment of lower income households, lower economic growth and fiscal
troubles imply that the government will not have enough resources to improve their situation in the medium term. This
is definitely a problematic scenario given that the poverty situation in the Philippines deteriorated even when
economic growth was relatively robust. To its credit, the government embarked on a campaign to increase and
expand social protection in response to the deteriorating poverty situation. In the wake of the crisis, resources were
increased and programs were improved. However, many social protection programs continue to be hindered by low
coverage and inadequate benefits, poor targeting, and operational constraints due to lack of coordination among
program implementers (Yap, T. 2012)

In 2008 a deep economic crisis started in the US and rapidly spread around the
world. The crisis severely affected the labor market and employees’ well-being (Mucci,
et,al. 2016 )

REFERENCES:

How Has Educational Attainment Influenced the Labour Market Outcomes of

Native- and Foreign-Born Adults? Education Indicators in Focus. No. 80 ERIC -
ED620746 - How Has Educational Attainment Influenced the Labour Market Outcomes of Native- and Foreign-Born
Adults? Education Indicators in Focus. No. 80, OECD Publishing, 2022-Feb-7

Gevorkyan,A.( 2015, January) Economic Crisis (PDF) Economic Crisis (researchgate.net)

Mucci et., al ( 2016 Apr 21) The correlation between stress and economic crisis: a systematic review. The correlation between
stress and economic crisis: a systematic review - PMC (nih.gov)
PARAPHRASE
By the spring of 2020, stringent containment measures had been used to lock down more than half
of the world's population. Beyond the coronavirus's health effects and human sorrow, it is now
widely acknowledged that the pandemic was the primary cause of the worst financial crisis since
World War II, with many economies not recovering their 2019 output levels until at least 2022.
(OECD, 2020).
Due to the economic crisis, unemployment has significantly increased, and several regions of the
country, like the industrial Midwest, are currently dealing with above 16% unemployment rates. The
level of financial uncertainty for people and families has increased as a result of the economic
crisis. . (United States Bureau of Labor Statistics 2010)
A growing body of research indicates that young adults who will soon enter the workforce may find
the current economic downturn particularly challenging. Kahn, for instance, discovered that college
graduation in a recessionary period had significant, detrimental, and long-lasting repercussions on
the labor market, including poorer lifetime occupational achievement and adverse short- and long-
term income effects (2010)
The growing necessity for national economic stabilization has trumped concerns about regional
development policy in the midst of the most severe economic and budgetary crisis that the majority
of countries are currently experiencing. The two metrics most frequently used to measure
economic growth and decline are output and employment. 2014's (Kallioras)
oncerning the geographical effects of unemployment, there is another area of research on the
regional effects of the economic crisis that is gaining more attention. According to OECD (2011b),
"three-fourths of OECD regions that showed employment growth between 1999 and 2007 shifted to
an employment decline between 2008 and 2009 [whereas] disparities in job losses have increased
OECD," which highlights the differentiated impact on job losses within OECD countries as a result
of the economic downturn (2011)
The global COVID-19 pandemic has a catastrophic economic impact on Asian nations and makes
life unpleasant for rural farmers. Awad and Konn (2020) claim that this pandemic primarily affects
developing nations and causes a slowdown in the industrial and agricultural sectors of the
economy. It was seen in the country of origin.
The years of struggle have halted progress in the region and left BARMM behind behind in the
majority of development indicators in the Philippines, according to another area of research on the
regional effects of the economic crisis that has drawn increasing attention. According to data from
the Philippine Statistics Authority (PSA), BARMM families had the greatest incidence of poverty
(53.6%) nationwide in 2018. (Sharma, et al 2022)

All levels of economic function are affected negatively by economic crises. According to indicators,
the nation in crisis experiences a decreased GDP (Gross Domestic Product, which measures the
total amount of economic value created in a year), which typically translates into probable staff
cutbacks (or, in the best case scenario, no new hires), decreased compensation.

The first year of the COVID-19 pandemic saw a wide range of labor market results for adults who
were both native-born and foreign-born, with some countries even seeing a decline in employment
disparities compared to 2017.
In addition to staff layoffs, investments being canceled, stressful living and working conditions,
declining demand and revenues, rising costs, disruption of routine operations, failures in decision-
making and communication, and the closure of organizations are just a few of the detrimental
effects of crises (Kash and Darling 1998)
Above all, there is a negative effect on living standards as more people lose their employment,
salaries decline, poverty and inequality rates increase, and firms close their doors or declare
bankruptcy. Because the disruption directly affects the real economy, it often takes a long time
(between months and decades) to recover to pre-crisis levels. 2014 Gevorkyan
Therefore, even though early survey results from the Community-based Monitoring System
suggest a moderately negative impact on lower income households' employment and income,
weaker economic growth and fiscal issues suggest that the government won't have enough
resources to help them in the medium term. Given that the Philippines' poverty situation worsened
despite relatively strong economic growth, this scenario is unquestionably problematic. To its
credit, in response to the worsening poor situation, the administration launched a push to boost
and expand social protection. Resources were expanded and initiatives were enhanced after the
catastrophe. But low coverage and inadequate benefits, poor targeting, and operational limitations
brought on by a lack of cooperation among program implementers continue to impede many social
safety programs (Yap, T. 2012)
A severe economic crisis began in the US in 2008 and quickly extended to the rest of the world.
The crisis had a significant impact on the labor market and the welfare of employees (Mucci, et,al.
2016 )
Vulnerability has been particularly recognized in the wake of the impact of the novel

coronavirus (COVID-19) that is likely to yield declines in incomes because of reduced

economic activities. In estimating the impact of COVID-19 on poverty, and the income

distribution, data are not available at this time. The study makes use of simulation scenarios and

assumptions. We find that in a (medium case) scenario of declines of incomes by 10 percent

across the entire income distribution, the number of poor Filipinos can increase by 5.5 million.

However, under tougher conditions of income contractions of 20 percent with social protection

cash assistance, we simulate that the average time for low income Filipinos to move up into

middle income class would increase by three years from baseline figures. Under a protracted

recovery, we would thus expect a longer period to transition. These results, though relying on

simulation scenarios and simplistic assumptions, are helpful in illustrating the importance of

government efforts to provide social protection not only for the poor but also for segments of

the income distribution that could likely to fall into poverty given income contractions from

reduced economic activities during this COVID-19 pandemic (Albert, J. et., al 2020)
Albert, Jose Ramon G., Abrigo, Michael Ralph M., Quimba, Francis Mark A., Vizmanos,
Jana Flor V. (2020, August) Poverty, the Middle Class, and Income Distribution amid
COVID-19.  http://hdl.handle.net/11540/12319

The unprecedented crisis originating from the outbreak of COVID-19 has placed specific
population segments in a more vulnerable position. On the one hand, this pandemic crisis
has exposed the socially vulnerable to new forms of vulnerabilities, further threatening
their livelihood, health, and well-being. On the other hand, it has exacerbated the already
existing vulnerabilities, placing them at increased risks due to the existence of underlying
conditions. Undoubtedly, the pandemic has exposed the disparities that have long existed
within the society and have long been faced by vulnerable populations. Pandemic crisis
has created compounding challenges, disproportionately affecting the
disadvantaged sectors of the society and heightening their risk of social
vulnerability. In the Philippines, children, women, the elderly, persons with
disabilities, and low-income families have faced stressors associated with
vulnerabilities and are further triggered by the crisis amid the implementation of
stringent quarantine measures.( Peñalba, E. 2021 )

With the individualization of risks, individuals are compelled to work things out for
them, especially when they do not have access to social Ericson PEÑALBA 195 support
and services (Chan & Ho, 2017). This situation is particularly true for those belonging to
vulnerable sectors who lack the required resources to address the risks and uncertainties
they face, particularly during the pandemic crisis (Nygren & Olofsson, 2020). For
example, workers who lost their jobs would find themselves struggling to make decisions
and actions such as seeking relief assistance, enrolling in training programs to upgrade
their skills, or making a living through online selling. Poor households that are already
beset by health inequalities face difficulty managing their own risks, further contributing
to their adverse health outcomes (Cardona, 2020).

Peñalba, E. (2021). Pandemic and social vulnerability: The case of the Philippines.
https:// 10.26650/B/SS49.2021.006.14
This pandemic greatly hits the developing countries and creates an economic slowdown
in industry and agricultural sectors. It could be seen in the native place of Maguindanao
province where most farmers faced challenges with their farming activities amidst
pandemic. Some of these are the loss of marketable disposal of their harvest due to travel
retsrictions, low price of output, lacking of laborers, and etc. Economic disruptions were
indirectly felt by the small farmers' sector, hence promoting and strengthening policies
must be the primary concern to safeguard farmers' welfare and raise them from their
wretched condition. Proper delegation and immediate action of different stakeholders
must be planned, prepared, and properly hand over to help these families recover and
become productive with their farming operation. Further, this study also helps
policymakers identify desirable and effective measures for the farmers' fast resiliency.
Awad and Konn (2020)

Abdulrahman, J. (June 6, 2021). The Economic Impact of Pandemic on Farmers’ Sector

at Maguindanao Province.

 https://ssrn.com/abstract=4000054 or http://dx.doi.org/10.2139/ssrn.4000054

The article aims to measure fragility and its effects on labour market employment
and wages. The observed non-work-related migration is used to derive annual
fragility indices for regions that are then incorporated into standard labour market
employment and Mincer wage equations. The estimates indicate higher employment
but lower wages in fragile regions. Under weak institutions, workers will decide to
engage in alternative low-paying work arrangements in anticipation of conflict,
environmental or income shocks.
However, for the most fragile region, the Autonomous Region of Muslim Mindanao
(ARMM), labour participation is substantially lower than the national average. Third,
unemployment is lower, but underemployment is higher than the national average. This
indicates the phenomenon of the ‘working poor’ where employment rates seem high, but
the compensation is not enough to meet the basic needs of the workers. This is
representative of a fragile state where despite the improvements in poverty, the level of
fragility remains high, thus placing the country in middle income trap (Chami et al.,
2021a).

ARMM, also had the highest percentage of people not going to work.This supports the
notion that fragility results in lower labour force participation as skills and schooling are
not readily accessible in fragile states (ILO, 2019).These workers may not be qualified
forthe jobs being offered. ARMM has a relatively lower unemployment rate compared to
the other regions.Luzon which is the most developed and least fragile of these areas has
the highest level of unemployment ( Leonardo A. Lanzona, Jr. 2022)

Leonardo L. (2022, June 26) The Effect of

Fragility on Labour Market Employment and Wages in the Philippines.
https://journals.sagepub.com/doi/abs/10.1177/09763996221097877