Analyze the Cause and

Effect of Unemployment

Problem
- Group 2 -
Introduction
Unemployment can cause severe negative effects, not only
for individuals but also for the overall economy.
Unemployment causes and effects are vital to recognize in
order to solve the problem. Analyzing them can also allow
people to realize what consequences are to expect.

The causes and effects of unemployment impact individuals,

society and the economy in general. The overall problem issue
results from various factors relating to social, economic,
environmental, political and individual elements in an
economy.
CAUSE
JOB-SKILL MISMATCH AMONG FILIPINO

GRADUATES

LACK OF QUALITY GRADUATES

OUTDATED SCHOOL

CURRICULUM
LACK OF SKILLS AND EXPERIENCE

LACK OF UNDERSTANDING ABOUT JOB

APPLICATION
CAUSE
DISCRIMINATION AND UNREASONABLE JOB

REQUIREMENTS

POVERTY SCALE

RAPID POPULATION GROWTH

CAUSE JOB-SKILL MISMATCH AMONG FILIPINO

GRADUATES
CAUSE LACK OF QUALITY GRADUATES
CAUSE OUTDATED SCHOOL CURRICULUM
CAUSE LACK OF SKILLS AND EXPERIENCE
CAUSE
LACK OF UNDERSTANDING ABOUT JOB

APPLICATION
CAUSE
DISCRIMINATION AND UNREASONABLE

JOB REQUIREMENTS
CAUSE
POVERTY SCALE
CAUSE
RAPID POPULATION GROWTH
EFFETCS
ANTISOCIAL ACTIVITIES

POVERTY

DRUGS CONSUMPTION

SUICIDE

LOWER ECONOMIC GROWTH

EFFETCS
INCREASE IN THE RATE OF CRIMES

HEALTH ISSUES
EFFETCS
ANTISOCIAL ACTIVITIES
EFFETCS POVERTY
EFFETCS
DRUGS CONSUMPTION
EFFETCS SUICIDE
EFFETCS LOWER ECONOMIC GROWTH
EFFETCS INCREASE IN THE RATE OF

CRIMES
EFFETCS HEALTH ISSUES
Conclusion
UNEMPLOYMENT CAN BE A SERIOUS PROBLEM, SOME PEOPLE
SIMPLY DO NOT WANT TO WORK, OTHERS URGENTLY SEARCH
FOR A JOB BUT ARE NOT ABLE TO GET ONE. IN ORDER TO BE
ABLE TO FIGHT HIGH LEVELS OF UNEMPLOYMENT,
GOVERNMENTS HAVE TO TAKE SUITABLE MEASURES. THIS
COULD MEAN GIVING FIRMS THE INCENTIVE TO EMPLOY MORE
PEOPLE OR ALSO TO PROVIDE BETTER EDUCATION FOR THE
GENERAL PUBLIC SO THAT UNEMPLOYMENT DECREASES
NATURALLY. BY DOING SO, MORE PEOPLE CAN GET BACK INTO
WORK AND THE OVERALL QUALITY OF LIFE FOR PEOPLE IS
LIKELY TO INCREASE.
 Thank
GROUP 2

AMPARO
you
FORMARAN
JORLANO
MAGPAYO
PADERES
RAGO
TEJADA
 Demonstrating
Unemployment Rate to
Measure Economic
Problem
Presented by:
Group 3
 Today's Agenda

1 Defining Unemployment 3 Demonstrating Unemployment Rate to

Measure Economic Problem

2 Discussion of Unemployment Rate 4 Conclusion

What is Unemployment?
The term unemployment refers to a situation where a person
actively searches for employment but is unable to find work.

Unemployment is considered to be a key measure of the

health of the economy.

Types of Unemployment:
Frictional
Cyclical
Structural
Seasonal Unemployment
EMPLOYED UNEMPLOYED Not in the Labor
Force

The Labor Force

Unemployment Rate
It measures how many people are unemployed in the economy.
It is widely recognized as a key indicator of the performance of
a country's labor market.

It tends to fluctuate with the business cycle, increasing during

recessions and decreasing during expansions. It is among the
indicators most commonly watched by policy makers, investors,
and the general public.

U-3 Rate UNEMPLOYED

X 100
LABOR FORCE
 Demonstrating Unemployment Rate
to Measure Economic Problem
The unemployment rate has an inverse relationship with the stock market and inflation, two
key metrics for the overall health of the economy.

A low unemployment rate tends to be associated with an increased average wage, due to the
reduced labor supply. In some instances, this can result in inflation, as employers raise
prices to account for increased labor costs. Low unemployment also tends to be
accompanied by increased stock prices, because the workforce has more disposable income.

Low unemployment is not considered healthy, however, high unemployment is not

considered healthy, as higher rates can be seen as a financial strain on consumer spending.

In general, most experts deem unemployment between 3% and 5% to be ideal, though there
is no single consensus on what constitutes healthy unemployment.
Example:

Employed:12.6 Million
Unemployed: 0.7 Million
Sign of Economic Distress
Unemployed workers must maintain at least subsistence consumption during their
period of unemployment. This means that an economy with high unemployment has lower
output without a proportional decline in the need for basic consumption.

High, persistent unemployment can signal serious distress in an economy and even
lead to social and political upheaval.

Sign of Overheating Economy

A low unemployment rate, on the other hand, means that the economy is more likely
to be producing near its full capacity, maximizing output, driving wage growth, and
raising living standards over time.

However, extremely low unemployment can also be a cautionary sign of an

overheating economy, inflationary pressures, and tight conditions for businesses in need
of additional workers.
Conclusion:
In assessing an economy's health, the nation's unemployment rate
plays a major factor in setting monetary policy and making strategic
economic decisions. Though there are various ways to calculate
unemployment, the general public is most familiar with the U-3 rate.
The calculation for this iteration of the unemployment rate is to
divide the number of unemployed individuals by the total workforce.

Unemployment is a key indicator of the health of an economy. A

low unemployment rate represents a strong economy while a high
unemployment rate represents a weak economy.
That's a wrap!
Thank you for participating!

Group 3:
Chamdal
Gaasis
Limpo
Montero
Parcarey
Rocero
Virtucio
BAE106 - C108

solutions for
UNEMPLOYMENT
by Group 4
Better
EDUCATION
Easier to find jobs
Anticipate labor demand
Retraining programs
Motivation
PROGRAMS
Employee benefits
Abolish ENDO
Empower
STARTUPS & SMALL
BUSINESSES
Fight
DISCRIMINATION
Gender Equality
DECENTRALIZATION
More employment opportunities
Population
CONTROL
Family planning programs
During
FINANCIAL CRISIS
Expansionary monetary policy
Expansionary fiscal policy
Thank you for listening!
GROUP 4:
Dela Cruz
Geronimo
Maaño
Obispo
Peña
Sinohin
Zaballero