Social Studies
- Considered as the next higher in
Labor and Employment
Labor
- Exertion of human effort to acquire an
income
- Human effort: physical and mental
Characteristics
o Labor is perishable
- Labor incapable of being stored
- Labor that is lost is lost forever
o Labor and the Individual are inseparable
- Man working for wages cannot
separate his physical self if he
wants to enjoy the comforts of
another room
o Labor Supply does not change quickly
- Supply of labor increases as
population grows
- Labor cannot be made to increase
abruptly
o Most employable persons do not like to
move
- People prefer to remain
unemployed though there are
higher demands somewhere else
- OFW
Reasons
- Want to stay close to their family
- Not aware of the demand of their
services somewhere else
- Lack the required skill/s
- Cannot afford the cost of moving
from one place to another
Kinds of Labor
o Manual Labor
- Mostly involve the exertion of
physical effort
- Use of brawn and muscles
o Clerical Labor
order than manual labor
- Done with physical effort but not as
great as that in manual labor
o Labor of Management
- Managers of all kinds and types
o Professional Labor
- Require sufficient training and
experience
o Labor of Entrepreneur
- The one who organizes the business
and sees to it that the business
becomes stable
o Labor of Inventors
- Very important ingredient in
economic development is the
output of inventors
Supply of Labor
- Its is important to know the
circumstances that affect their decision
to make labor available in the market
Kinds
o Market Activity
o Nonmarket Activity
Effect of the Wages Rate
o The Substitution effects
- Households will naturally find some
time for nonmarket activities
o Income effect
- When household wage is higher,
more income will be able to the
households for spending
- When households spends it money
on leisure or nonmarket activities,
there is less time for market
activities
o Backward-bending Labor Supply Curve
- When households begin to have
sufficient income, labor supply
tends to decrease
 - Wage earners reduce the time they o Unemployment
spend for work when they receive - Occurs when a person of working
high wages age, can and is willing to work,
cannot find work
Demand for Labor
 Output and Income Loss
Labor - Willing workers cannot find
employment
- Factor for production that is required
- They are deprived of income
by business firms
- The economy cannot benefit
Business firms from the work they could have
done
- Sources of demand for labor  Deprecation of Human Capital
Quantity of Labor Demanded - Capability of work is referred to
as person’s human capital
- Total number of man hour/day hire by  Structural Unemployment
all firms in an economy - There are available and willing
The Real Wage Rate workers but their skills and
training are not what those
Real Wage business firms require
 Cyclical Unemployment
- Refer to the purchasing power of a
- When the demand for workers
given nominal (or money) wage
is less than the supply
Nominal Wage Rate o Inadequate Wages
- Causes
- The amount in pesos paid to a worker
 Inflation
for a unit of work
 Lack of Skills
 Too many dependents
o Industrial and Labor Management
Conflict
- Strikes and lockouts are actions that
bring misery to both employer and
workers
o Economic Insecurities
- Workers worry about having a
permanent source of income

Investments in Human Capital

The Labor Demand Curve
o Education
- A factor that is brought just like any - Provided to the individual
commodity - usually before employment
- Price depends of the quantity o Training
demanded - Done when the person is already
working
Problems
Theories of Employment
o Classical Theory
- Employment states that
employment increases at lower
wages
- Further claims that widespread
unemployment could be caused
only by stubborn refusal of workers
to accept low enough wages
Globalization
- Term used to describe the changes in
societies and the world economy that
are results of a dramatically increased
trade and cultural exchange
- Refers to the effects of trade,
particularly, trade liberalization
- “Free trade” – liberal
o Formation of a global village
- Closer contact between different
parts of the world
- Increasing possibilities of personal
exchange, mutual understandings
and friendship between “world
citizens”
o Economic globalization
- “free trade” and increasing
relations among members of the
industry in different parts of the
world
- Globalization of an industry
o Spreading of multiculturalism, better
individual access to cultural diversity,
some reduction in diversity
o Greater international travel and tourism
o Greater immigration and illegal
immigration
o Development of telecommunications
infrastructure
o Development of global financial
systems
o Increase in the share of the world
economy controlled by multinational
companies
o Increased role of international
organizations that deal with
international transactions (WTO, WIPO,
IMF)
o Increase in the number of standards
applied globally ex. Copyright laws
Globalization in the Philippines
o Taking part in globalization ever since
they signed with World Trade
Organization (WTO) in 1995
o Globalization is very effective in the
Philippines
o Allowed major changes like
- More labor
- More Filipino and foreign
companies

Signs of Globalization

o Increase in the international trade

o Increase in international flow of capital
including foreign direct investment
o Greater transborder data flow using
such technologies
o Greater international cultural exchange
o Terrorism even has undergone
globalization
Advantages

o Peaceful relations
 - Countries resorted to trade to
boost their economies leaving bitter
pasts
o Employment
- On of the most crucial advantage
- Has led to generations of multiple
job/employment opportunities
- Companies and moving toward
developing countries to acquire
labor force
o Education
- Critical advantage
- Numerous educational institutions
around the globe
- Can leave home country for better
opportunities elsewhere
o Product quality
Disadvantages
- Has been enhanced to retain
customers
o Cheaper prices
- Globalization has brought in fierce
competitions in the market
- Good quality, cheap price, more
customers
o Communication
- Information is easily accessible
- Direct access to information and
products
- Circulation of information is no
longer tedious task
o Transportation
- Wheel of every businesses
- Connectivity to various parts of the
world is no longer a problem
- Easier to deliver products to
customers from around the world
o GDP Increase
- Gross Domestic Product
- Money final of goods and services
within the domestic territory of a
country during an accounting year
o Free trade
- A policy in which a country does not
levy taxes, duties, subsidies, or
quota on the import/export of
goods or services from other
countries
- Allows consumers to buy goods and
services, comparatively at a lower
cost
o Travel and tourism
- Globalization has promoted tourism
to great heights
o External Borrowing
- There is an opportunity for
corporate, national, sub-national
borrowers to have better access to
external finance, with facilities such
as external commercial borrowing
and syndicated laws
o Health Issues
- New threats and challenges for
epidemics
- Dawn of HIV/AIDS, started in Africa,
spread like wildfire around the
world
- Food items transported to various
countries are a concern, especially
perishable items
o Loss of Culture
- People may adapt to the culture of
resident countries
- Tend to follow foreign culture
more, forgetting their roots
- Can give rise to cultural conflicts
o Uneven wealth distribution
- Rich are getting richer, poor are
getting poorer
- Globalization has not helped solve
poverty
o Environment degradation
- Industrial evolution has changed
the outlook the economy
- Industries are using natural
resources by means of mining,
drilling, ect.
 - Puts a burden on the environment
o Disparity
- Globalization has opened new
avenues
- There still exists a disparity in the
developing of the economies
- Structural unemployment owes to
the disparity in the development of
countries
- Developed countries are moving
their industries to foreign countries
where labor is cheaply available
o Conflicts
- Given rise to terrorism and other
forms of violence
- Causes human life and economic
loss
o Cut-throat competition
- Intense competition
- Affected the local markets
dramatically
- Local players lack the potential to
advertise or export products on a
large scale
- Thereby locals suffer losses greatly
- Therefore domestic market shrinks
SDGs
Sustainable Development Goals
- 17 set goals for the world’s future,
through 2030
- Backed up with a set of 169 targets
- Negotiated over a two-year period at
the United Nations
- Agreed to nearly all nations on Sept. 25
Universality
- Goals apply to every nation and sector
- Cities, businesses, schools, and
organizations are all challenged to act
Integration
- recognized that the Goals are all inter-
connected, in a system
- cannot aim to achieve just one Goal, we
must achieve them all
Transformation
- it is widely recognized that achieving
these Goals involves making very big,
fundamental changes in how we live on
Earth
17 SDGs
#1: End poverty in all its forms everywhere
#2: End hunger, achieve food security and
improved nutrition and promote sustainable
agriculture
#2: End hunger, achieve food security and
improved nutrition and promote sustainable
agriculture
#2: End hunger, achieve food security and
improved nutrition and promote sustainable
agriculture
#5: Achieve gender equality and empower
women and girls
#6: Ensure access to water and sanitation for
all
#7: Ensure access to affordable, reliable,
sustainable and modern energy for all
#8: Promote inclusive and sustainable
economic growth, employment and decent
work for all
#9: Build resilient infrastructure, promote
sustainable industrialization and foster
innovation
#10: Reduce inequality within and among
countries
#11: Make cities inclusive, safe, resilient and
sustainable
#12: Ensure sustainable consumption and
production patterns

#13: Take urgent action to combat climate

change and its impacts

#14: Conserve and sustainably use the oceans,

seas and marine resources

#15: Sustainably manage forests, combat

desertification, halt and reverse land
degradation, halt biodiversity loss

#16: Promote just, peaceful and inclusive

societies

#17: Revitalize the global partnership for

sustainable development