UNEMPLOYMENT

THE PROBLEM OF
UNEMPLOYMENT ARE NOT NEW AND
THEY DO EXIST EVERYWHERE EVEN
THE INDUSTRIAL COUNTRIES-WHICH
ARE CONSIDERED THE RICHEST
COUNTRIES (like Luxembourg, Norway,
Switzerland, Ireland, Singapore , Qatar,
etc.)- HAVE NOT BEEN SPARED FROM
THE DESTRUCTIVE IMPLICATIONS OF
UNEMPLOYMENT.
TYPES OF UNEMPLOYMENT
1.FRICTIONAL UNEMPLOYMENT
THIS IS CAUSED BY
INTERRUPTIONS IN PRODUCTION FOR
TECHNICAL REASONS, OR WHEN WORKERS
ARE TEMPORARILY LAID OFF DUE TO
RENOVATION WORKS. IT IS ALSO A
SITUATION WHEN WORKERS LEFT THEIR
JOBS AND ARE LOOKING FOR NEW ONES.
2. STRUCTURAL UNEMPLOYMENT
A CHANGE IN TECHNOLOGY
RENDERS THE SKILLS AND TALENTS OF
SOME WORKERS OBSOLETE.
3. CYCLICAL UNEMPLOYMENT
THIS IS CAUSED BY THE FALL OF
BUSINESS ACTIVITIES IN THE ECONOMY.
WHEN AGGREGATE DEMAND DECREASES,
PRODUCTION SUBSEQUENTLY DECLINES.
SOME WORKERS HAVE MADE TO LAID OFF.
4. SEASONAL UNEMPLOYMENT
DURING LACK PERIODS,
MANY WORKERS IN FARMING AND
CONSTRUCTION ARE LAID.
 EFFECTS OF
UNEMPLOYMENT
 IF THERE IS NO REAL HOPE FOR RE-
EMPLOYMENT IN THE NEAR FUTURE, NOT
A FEW JOBLESS PEOPLE DEVELOP AN
ATTITUDE OF FRUSTRATION. THIS MAY
LEAD TO LOSS OF SELF-CONFIDENCE OR
TO MORE SERIOUS SOCIAL CRIMES.

EXAMPLE: KIDNAPPING, THEY DO THAT

FOR THE SAKE OF THEIR FAMILIES TO
EAT IN 3 TIMES A DAY, SO THAT THEY
COMMIT THAT CRIME . IT WILL THE
EFFECT OF THE UNEMPLOYMENT.
FULL EMPLOYMENT
DEFINED
THERE ARE SEVERAL FACTORS
OF UNEMPLOYMENT
DURING A PERIOD OF FULL
EMPLOYMENT:
SOME PEOPLE ARE SICK, AND
THEREFORE UNABLE TO WORK.
AS LONG AS THEY HAVE A GOOD
CHANCE TO RECOVER AND
REGAIN THEIR JOBS, THEY TO
FIND EMPLOYMENT AT BETTER
TERMS IN THE NEAR FUTURE.
MANY EMPLOYEES LEFT
THEIR JOBS BECAUSE OF
DISSATISFACTION. THEY
HOPE TO FIND
EMPLOYMENT AT BETTER
TERMS IN THE NEAR
FUTURE.
IN RICH COUNTRIES, (like Luxembourg,
Norway, Switzerland, Ireland, Singapore , Qatar,
etc.). THE LEGAL MINIMUM WAGE IS
USUALLY HIGH. EMPLOYERS REALIZE
THAT SUCH WAGE IS MORE THAN THE
VALUE ;OF THE OUTPUT OF MANY YOUNG
WORKERS. THUS, IT IS NOT PROFITABLE
TO HIRE THEM.

EXAMPLE: NURSES IN THE PHILIPPINES

WORK IN ABROAD LIKE IN IRELAND
BECAUSE THEY HAVE THEIR HIGHER
SALARY THAT THEY CAN RECEIVE THAN
HERE IN THE PHILIPPINES.
BECAUSE OF OLD AGE OR OTHER
PERSONAL HANDICAPS, SOME
GROUPS STAND AT THE BORDERLINE
BETWEEN EMPLOYABILITY AND
UNEMPLOYABILITY. AS LONG AS
THEIR STATUS HAS NOT BEEN
SETTLED DEFINITELY, THEY ARE
STILL CONSIDERED PART OF THE
LABOR FORCE.
HEORIES OF EMPLOYMENT
 CLASSICAL THEORY OF EMPLOYMENT
STATES THAT EMPLOYMENT INCREASES AT
LOWER WAGES. EMPLOYERS ARE WILLING TO
HIRE MORE WORKERS AT LOWER WAGES
BECAUSE IT IS MORE PROFITABLE.
 KEYNESIAN THEORY OF EMPLOYMENT
WHICH IS THE MODERN THEORY OF
EMPLOYMENT-STATES THAT EMPLOYMENT IS
DETERMINED BY AGGREGATE OR TOTAL
DEMAMD FOR GOODS AND SERVICES.
FULL EMPLOYMENT
POLICIES
1. SHORTER WORK WEEK
A REDUCTION OF WORK WEEK FROM 44
TO 40 HOURS WOULD INCREASE THE NUMBER OF
WORKERS. IN THE INDUSRIAL COUNTRIES,
WORKERS ARE PAID BY THE HOURS.
2. POSTPONEMENT OF TECHNOLOGICAL
DEVELOPMENTS
THIS IS ANOTHER WAY OF INCREASING
DEMAND FOR WORKERS. IT IS CLAIMED THAT
THE USE OF TIME AND LABOR SAVING DEVICES
DECREASES THE NUMBER OF WORKERS.
3. PUBLIC INVESTMENTS
THE GOVERNMENT SHOULD UTILIZE ITS
RESOURCES TO INCREASE DEMAND FOR GOODS
AND SERVICES. EXAMPLE, TRANSPORT,
TELECOMMUNICATIONS AND BUILDINGS HUMAN
OR INTANGIBLE INVESTMENTS IN EDUCATION
SKILLS, AND KNOWLEDGE AND CURRENT
TELECOMMUNICATION
INVESTMENT IN THE CONSUMPTION OF GOODS
AND SERVICES.

TRANSPORTATION
INFLATION
 INFLATION WHEN THERE IS A
RISING GENERAL LEVEL OF
PRICES. IN FACT SOME PRICES
REMAIN CONSTANT OR EVEN
FALL. OTHER PRICES RISE VERY
SUDDENLY. IN SHORT, THERE IS NO
EVEN ESCALATION OF PRICES.
INFLATION ADVERSELY AFFECTS
MANY SECTORS OF THE ECONOMY,
PARTICULARLY THE FIXED
INCOME GROUPS. INFLATION ALSO
 WHEN PRICES KEEP ON INCREASING,
PEOPLE ARE INCLINED TO SPEND THEIR MONEY
BEFORE IT LOSES ITS VALUE. USUALLY, THEY
PURCHASE JEWELRY, REAL ESTATE, OR HOME
APPLIANCES.
 TYPES OF
INFLATION
1.DEMAND-PULL
INFLATION
THIS TYPE
OF INFLATION OCCURS
WHEN DEMAND FOR
GOODS AND SERVICES
EXCEEDS SUPPLY. MILITARY EQUIPMENT
2. COST-PUSH
INFLATION
AN
INCREASE IN THE
COST OF PRODUCTION
RESULTS TO AN
INCREASE IN PRICES.
COST INCREASES
WHENEVER THERE IS
AN INCREASE IN
WAGES, OIL PRICES,
OR PRICES OF RAW
MATERIALS.
3. STRUCTURAL INFLATION
THIS VIEW EXPLAINS THAT THE
INABILITY OF SOME SECTORS OF
OUR ECONOMY TO RESPOND IMMEDIATELY TO
THE PHILIPPINE EXPERIENCE
THE PHILIPPINE ECONOMLY
TURNED FROM BAD TO WORSE IN 1984.
FOREIGN LOANS DID NOT COME,
DOLLARS WERE DIFFICULT TO OBTAIN,
AND BOTH DOMESTIC AND FOREIGN
MARKETS DECLINED. BUSINESSMEN,
WORKERS, FARMERS, AND THE BREST
LOF THE POOR MASSES COMPLAINED
ABOUT THE FINANCIAL DIFFICULTIES.
THE AVERAGE INFLATION RATE FOR 1984
CAUSES OF THE RECESSION
THE SIDE OF THE GOVERNMENT WAS
THE GLOBAL RECESSION AS THE MAIN
CAUSE OF OUR ECONOMIC CRISIS.
ECONOMIC MANAGERS OF THE
ADMINISTRATION EXPLAINED THAT
THE ECONOMIC RECESSION IN THE
INDUSTRIAL COUNTRIES HAS
GREATLY AFFECTED OUR EXPORTS TO
SAID COUNTRIES. ANOTHER
 OIL PRODUCTS

VIETNAM
1. TO INCREASE PRODUCTION OF SHORTATION
CROPS AND OTHER SMALL-SCALE INDUSTRIES.
THESE PRODUCE GOODS WITHIN A FEW MONTHS.
THUS, INCOMES ARE IMMEDIATELY GENERATED.
2. TO REDUCE
OVER-SUPPLY
OF MONEY, THE
BANGKO
SENTRAL HAS
ACTIVELY
ENGAGED IN
THE OPEN
MARKET SALE
OF TREASURY
AND BANGKO
SENTRAL BILLS.
3. TO REDUCE
GOVERNMENT
EXPENDITURES THOUGH
MORE ECONOMICAL USE
OF ITS RESOURCES, SUCH
AS THE SHUT DOWN OF
LOSING GOVERNMENT
CORPORATION,
UNNECESSARY TRAVEL
ABROAD OF TOP
GOVERNMENT OFFICIALS,
ETC.
4. TO CONCENTRATE MORE ON THE
DEVELOPMENT OF AGRICULTURAL PROJECTS
WHICH ARE LESS EXPENSIVE AND HAVE SHORTER
GESTATION THAN INDUSTRIAL PROJECTS.

INDUSTRIAL
PROJECT
AGRICULTURAL
PROJECT
5. TO
ENCOURA
GE MORE
FOREIGN
INVESTM
ENTS TO
ACCELAR
6. TO TRANSFORM THE PEOPLE INTO MORE SELF-
RELIANT ,AND PRODUCTIVE GROUPS. THEY HAVE
BEEN ENCOURAGED TO ENGAGE IN BACKYARD
GARDENING, POULTRY, PIGGERY, AND OTHER
INCOME PRODUCING PRODUCTS.
ECONOMIC RECOVERY DEPENDS ON
GOVERNMENT OFFICIALS
NOT A FEW COUNTRIES EMERGED FROM POVERTY TO
PROGRESS BECAUSE OF THE GOOD VIRTUES OF THEIR
TOP GOVERNMENT OFFICIALS. HOWEVER, THE PEOPLE
HAVE AN EQUAL RESPONSIBILITY IN THE ECONOMIC
RECOVERY OF THEIR OWN COUNTRY. WE DESPIRE OUR
OWN PRODUCTS. COLONIAL MENTALITY HAS BEEN A
MAJOR CAUSE OF OUR POOR ECONOMY. ECONOMIC
PROGRAMS ARE USELESS IF THEY ARE NOT PROPERLY
IMPLEMENTED. AND AS FAR AS THE PHILIPPINES IS
CONCERNED, THERE HAS ALWAYS BEEN A BIG
DIFFERENCE BETWEEN A PLAN AND ACTION. WE ARE
VERY GOOD IN FORMULATING PROGRAMS BUT WE ARE
VERY POOR IN IMPLEMENTING AND MANAGING THEM.