GROUP NAME

UNEMPLOYMEN
T
Table Of Contents
DEFINITION

CAUSE AND EFFECT

GOVERNMENT INTERVENTIONS

PROPOSED SOLUTIONS
UNEMPLOYMEN
T
THE SCARCITY OF JOB OPPORTUNITY
Individuals who are employable and seeking a job but unable to
find a job due to limitation of job opportunities.

According to the Organization for Economic Co-operation and

Development (OECD), an unemployed person is a person of
working age who does not have a job, is available for work and
has taken specific measures to find work.

This is measured by the unemployment rate through the

Philippine Statistics Authority, the Philippine government's central
statistical authority, collecting, compiling, analyzing, and
publishing statistical data on economic, social, demographic,
political, and general matters affecting the Filipinos.
CURRENT UNEMPLOYMENT RATE OF PHILIPPINES
DECEMBER 2022)
Unemployed Unemployment Rate from Dec. 2021-2022 Unemployment Rate from Sub-Sectors
8% 600,000
4.3%

400,000
6%

200,000

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The country’s latest unemployment rate was in December 2022. The unemployment rate was estimated at 4.3%, the second lowest since April 2005, following
the 4.2% in November 2022. The unemployment rate in December 2022 was lower than the unemployment rate in the same month last year at 6.6%. However,
in terms of magnitude, the total number of unemployed persons 15 years old and over increased by 43 thousand, from 2.18 million in November 2022 to 2.22
million in December 2022. In this number, the manufacturing sector had with the highest drop in the number of employed persons from November 2022 to
December 2022 with 585,000. It was then followed by wholesale and retail trade, repair of motor vehicles and motorcycles (387,000); accommodation and
food service activities (240,000); human health and social work activities (239,000); and real estate activities (168,000).

Source: Philippine Statistics Authority, Labor Force Survey

COMMON CAUSES
OF
UNEMPLOYMENT
LACK OF QUALITY GRADUATES
AND POOR EDUCATION SYSTEM
The Philippines' high unemployment rates can be attributed in
part to the country's poor educational system. Factors include low
teacher quality, a high dropout rate, a lack of competitiveness and
relevance, restricted access to information technology resources,
and inadequate school infrastructure.

Although government provides programs like scholarships and

grants to those who want to pursue higher education, these
programs do not reach all students who require them. As a result,
a large number of Filipinos remain unemployed owing to a lack
of knowledge and experience gained from attending school or
college do not meet the fundamental qualifications for stated job
positions.

In addition, there are a lot of college graduates yearly as it is

estimated that millions graduate annually. However, it does not
imply that they are prepared to take on available employment.

Source: Economic Policy Institution, 2015

COVID-19 PANDEMIC
COVID-19 or Coronavirus disease (COVID-19) is an infectious
disease caused by the SARS-CoV-2 virus. The virus was
identified on December 8, 2018, in Wuhan, China. Since then,
incidents have spread internationally, including to the
Philippines, and this is what first caused the occurrence of an
international epidemic.

Government lockdowns were implemented as a remedy, which

had a negative impact on the nation's job market. workers who
were laid off in droves from businesses that went out of business
and workers were under the “no work-no pay” arrangement.

It is in this time where the highest unemployment rate was

registered at 17.6% in April 2020, during the first
implementation of Enhanced Community Quarantine.
BEFORE COVID-19 SURGE
Unemployed
5.1%
Philippines: Unemployment rate from 2009 to 2019
8%
Reasons for Unemployment in 2019
7.5% 7.3% 7.0%
7.3%
7.0% 6.8% Others
6.3%
5.5%
5.7%
6% 5.3%
5.1%

Unemployment rate
Professional Health

4% Losing self-respect

Didn't achieve career goals

2%
Family problems

0%
Decrease of net worth

17
13

19
15
1
09

20

20
20

20

20
20
0% 20% 40% 60%

1
Employed
94.9%

The number of unemployed Filipinos before COVID-19 was 2.3 million resulting to an unemployment rate of 5.1 percent. Around 56%
of those who have been unemployed for a long time reported having much less money overall. 46% of persons in this situation reported
having broken family relationship. The capacity to accomplish their job ambitions was significantly impacted, according to 43% more
long-term unemployed people. Unfortunately, long-term unemployment caused 38% of these people to lose their respect for themselves,
and 24% of them needed professional help.

Source: Philippine Statistics Authority, 2009-2019

and CFI Team
 DURING COVID-19 SURGE
The number of unemployed Filipinos during April 2020 was 7.2 million resulting to an unemployment rate of 17.6 percent, which is a record high for the
unemployment rate in the country. This record high rate was caused by COVID 19-related issues as 97% of workers stated that it is due to the pandemic that
caused them to lose their jobs.
Six regions reported of more than 20% unemployment rates in April 2020. BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) recorded the
highest unemployment rate at 29.8%, followed by Central Luzon. CAR (Cordillera Administrative Region) ranked third with 25.3% followed by Region IX
(Zamboanga Peninsula) at 23.9%, Region I (Ilocos Region) at 22.3%, Region XII (SOCCSKSARGEN) at 21.2%. On the other hand, Region X (Northern
Mindanao) registered the lowest unemployment rate at 11.1%, followed by NCR (National Capital Region) and Region XIII (Caraga) both with 12.3%.

Unemployed Unemployment Rate by Region, April 2020 Reasons for Unemployment: April 2020
17.6% 30%
Personal Reasons

Poor Business Condition

Holidays
20%
Health Reasons

Low or Off Season

Others
10%

Nature of Work

COVID-19 Related Reasons

0% 25% 50% 75% 100%

0%

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Source: Philippine Statistics Authority, April 2020

 EFFECTS OF
UNEMPLOYMENT
LOSS OF INCOME
Loss of income is typically the result of unemployment. This should
be rather evident considering that if one does not work, he/she will
naturally be unable to obtain an income. On a personal level, this is
not a big issue, but on a wider scale, it can cause significant issues.

People might experience the negative effects of a loss in income, such

as debt, and collectively bigger problems, such as increased poverty
rates and lower standards of living because of lower purchasing
power, such as a decreased willingness and ability to purchase goods
and services and a tendency to buy what they initially perceived as
inferior goods.
.
This can be linked back to COVID-19 as a cause where majority of
Filipinos loose their jobs.

Source: EconSlip
LOSS OF INCOME
Distribution of household with a member losing their job through enhanced community quarantine due to
coronavirus (COVID-19) in the Philippines as of April 2020, by income

Yes No
According to a survey conducted in the
Under Php 9.52k Philippines, approximately 78.1 percent of
households with a member earning less
Php 9.52k to Php 19.04k
than Php 9.5 thousand Philippine pesos
Php 19.04k to Php 38.08k lost a job as a result of the Enhanced
Community Quarantine (ECQ)
Php 38.08k to Php 66.64k implemented in the country on March 16,
Php 66.64k to Php 114.24k
2020, due to the coronavirus COVID-19
pandemic. On the other hand,
Php 114.24k to Php 190.40k approximately 66.7 percent of families
with a member earning Php 190.4
Above Php 190.40k
thousand Philippine pesos or more did not
Don't Know experience job loss during the ECQ.

Refused to Answer

0% 25% 50% 75% 100% 125%

Source: Statista, 2023

SOCIAL COSTS
Social Costs, regarded as a welfare loss or
high income inequality, is a result of
unemployment in the Philippines.

Philippines has a Gini coefficient of 49.4 in

2021, which shows that its income
inequality is rather high since the farther the
Gini coefficient is to 1, the greater the
income inequality. It has also been shown
that crime rates in the Philippines is related
to unemployment, as well as less
volunteerism.

Other societal effects include higher hunger

and poverty rate that could negatively affect
the people.

Source: EconSlip
 GOVERNMENT
INTERVENTIONS
Assistance to Youth and Unemployed for
Development and Advancement
(AYUDA)
A subsidy program by the Department of Public Works and
Highways (DPWH) launched last December 7, 2021.
Beneficiaries will perform tasks related to roadside maintenance,
such as sweeping the streets, washing street signs, moving
rubbish, and painting concrete barriers.

PURPOSE:
• Tooffer assistance to people who lost their jobs as a result of the
Covid-19 pandemic.
• To seek to empower the kids by making them productive
members of society and support Filipino families by employing at
least one member each household.
• To help address unemployment through the government’s
massive Build, Build, Build programme.
• To address the alarming unemployment rate in the country.

Source: Department of Public Works and Highways,, AYUDA Program, 2021

Assistance to Youth and Unemployed for
Development and Advancement
(AYUDA)
“The goal is to at least hire one member per household to
guarantee food on the table of Filipino households that are
struggling to make ends meet.”-
DPWH Secretary Roger Mercado.

Over 900 individuals in Metro Manila have so far benefited from

the AYUDA Program of the DPWH.
In a statement Thursday, the department said a total of 947 youth
and heads of families were provided temporary employment for
two months.
They were paid PHP503 a day for working from November to
December.

Source: Department of Public Works and Highways,, AYUDA Program, 2021

Job Fair Programs
Jobs Fair is an employment facilitation strategy aimed to fast-track the meeting of
jobseekers and employers/overseas recruitment agencies in one venue at a specific
date to reduce cost, time and effort particularly on the part of the applicants.

It is where both government and private organizations colabotate to offer job

vacancies to people. These events are typically free to attend and are open to all
job seekers, regardless of their educational background or work experience. Some
of the major job fairs in the Philippines in recent years have included the Trabaho,
Negosyo, at Kabuhayan (TNK) Job and Business Fairs, the Kalayaan Job and
Business Fair, and the Mega Job Fair.

PURPOSE:
•To bring DOLE’s employment facilitation program to the reach of the poor,
unemployed and displaced workers in the regional areas.
•To provide venue for immediate meeting of jobs and people in order to minimize
transportation and other expenses encurred by applicants in coming to Manila or
areas where vacancies are available.
•To assist in the manpower sourcing of employers/recruitment agencies
particularly in identified areas where skills are highly in demand or are available.
•To support DOLE’s anti-illegal recruitment campaign by enabling access of
jobseekers to legitimate employers/recruitment agencies.
•To provide training and self employment assistance.
•To provide welfare services to those OFW’s and their dependents.

Source: Department of Labor and Employment

Job Fair Programs
In Caloocan City Local Government
Unit’s (LGU) Mega Job Fair last
November 10, 2022 at the Caloocan Hired Jobseekers
28.8%
City Sports Complex in Barangay
Bagumbong, out of 6,750 available job
vacancies, a total of 235 (28.78%) out
of 872 jobseekers were hired-on-the-
spot. In the said event, 43 companies,
most of which were related to the E-
commerce and Information Technology
& Business Process Management (IT-
BPM) industry. Job Vacancies
71.2%

Source: Department of Labor and Employment Regional,

National Capital Region, 2022
Technical Education and Skills
Development Authority (TESDA)
Established through the enactment of Republic Act No. 7796
otherwise known as the "Technical Education and Skills
Development Act of 1994", is the government agency tasked to
manage and supervise technical education and skills development
(TESD) in the Philippines.

TESDA sets direction, promulgates relevant standards, and

implements programs geared towards a quality-assured and
inclusive technical education and skills development and
certification system.

TESDA Technology Institutions are composed of 125 schools,

regional, provincial and specialized training centers nationwide
which undertake direct training activities for TESDA.

Source: Technical Education and Skills Development Authority

Technical Education and Skills
Development Authority (TESDA)
VISION:
•To be ‘the transformational leader in the technical education and
skills development of the Filipino workforce'.

GOALS:
•To provide quality technical education and training programs to
Filipino citizens so they can be employed in various industries.
•To develop the Filipino workforce with "world-class competence
and positive work values".
•To provide quality technical-educational and skills development
through its direction, policies, and programs.
•To certify the competency of workers in different fields, thus helping
them acquire better job opportunities.

Source: Technical Education and Skills Development Authority

Technical Education and Skills Development Authority (TESDA)

TESDA Graduates Employment Rate, 2022

84.7%

The Technical Education and Skills Development Authority (TESDA) last January 2023 said the employment rate of
its 1.2 million graduates in 2022 reached 84.72%.
A study conducted on the employment of TESDA graduates in 2022 showed that 8 out of 10 were able to have jobs
or livelihood.

Source: Technical Education and Skills Development Authority, 2023

 PROPOSED
SOLUTIONS
INVEST IN EDUCATION AND TRAINING
In order to fight unemployment, it is crucial to improve education
levels of people so that it will be easier for them to find a job.
As their is scarcity of finding quality workers, the government
should invest in education and training sectors. Giving these workers
the proper teaching and training may encourage firms to hire them,
resulting in a decrease in the unemployment rate.

Benefits:
•People can gain the knowledge and abilities required to be
successful in the job market.
•Build skills because assisting people in acquiring the abilities
individuals can improve their appeal to companies and their chances
of employment.
•Help address skill gaps in the workforce.
•Businesses can find the skilled workers they need to expand and
grow.

Though it requires a significant amount of budget, it can yield a

long-term significant effect to Filipinos especially in the working
aspect and fewer people will require additional government help
since they will continue to actively look for work and participate in
the economy..
REASONABLE JOB REQUIREMENTS
Employers should focus more on a candidate's skills and less on the qualifications required for
a position. The rising rates of unemployment in our country have made them one of the most
pressing problems we are currently facing. One of the reasons for the high rates is the tight
criteria that businesses demand.

Employers have set conditions that are otherwise inappropriate and unreasonable in order to
pre-qualifying candidates or discourage those who are not qualified. An example of a
discriminatory job criterion is a demand for height, especially if the position requires skills
other than the applicant's physical characteristics.

Benefits:
•Solves the unreasonable and inappropriate requirements for jobs.
•Employers could focus more on a candidate's skills and less on the qualifications required for
a position.
•The possibility of finding a job immediately will increase since a common problem in the
Philippines is high standard job requirements for workers, even if they are not covered by the
position they are applying for.

Although it eliminates the probability that employers sees multi-skilled candidates and reduce
the chance of employing a talented labor, but with an effective training can help employees
have qualities aligned to their jobs.
STRENGTHEN THE PRIVATE
SECTOR
Private sector is the sector of the economy that is run for profit by
individuals and businesses rather than the state. As a result, it includes any
for-profit enterprise that is not owned or operated by the government.

The private sector is a key stakeholder in both urban and economic

development, being a major contributor to national income and the
principal job creator and employer. Hence, successful businesses drive
growth, create jobs and pay the taxes that finance services and investment.

In developing countries, the private sector generates more than 50% of

jobs. Therefore, it is a need to strengthen this sector. The government
should give opportunities to all businesses, regardless of size. Such as by
improving government processes and creating an adequate business
environment.

It may be a long-term goal as it should encompass all the private sector, it

can give a positive effect to the employment of Filipinos as strengthening
the private sector means that more investments and establishing more
businesses in the country which requires human labor.
 SOURCES:
•Department of Labor and Employment, (2022). Job Fair.
http://ble.dole.gov.ph/job-fair/?fbclid=IwAR0Nds6IfTLTLByCeOP7j0fGTF-mIrrQDR39Np_HXNRqPmnffgUzSDSSSkQ

•Department of Labor and Employment- National Capital Region, (2022). .Caloocan City Mega Job Fair hires 235 jobseekers. https://ncr.dole.gov.ph/news/caloocan-city-mega-job-fair-hires-235-jobseekers/

•Department of Public Works and Highways, (2021). DPWH AYUDA Program Aids Youth, COVID-Displaced Workers.
https://www.dpwh.gov.ph/dpwh/news/24715

•EconSlip, (n. d.). Impacts- Unemployment in the Philippines.

http://econsilp2014.weebly.com/impacts.html

•National Economic and Development Authority, (2022). PH RECORDS LOWEST UNEMPLOYMENT RATE SINCE THE START OF THE COVID-19 PANDEMIC—NEDA.
https://neda.gov.ph/ph-records-lowest-unemployment-rate-since-the-start-of-the-covid-19-pandemic-neda/

•OECD, (n. d.). Unemployment Rate.

https://data.oecd.org/unemp/unemployment-rate.htm#:~:text=The%20unemployed%20are%20people%20of,specific%20steps%20to%20find%20work.&text=The%20labour%20force%20is%20defined,people%20plus%20those%20in
%20employment

•Philippine Statistics Authority, (2009-2019). Annual Estimates of Labor Force Survey.

•Philippine Statistics Authority, (2023). Unemployment Rate in December 2022 is Estimated at 4.3 Percent.
https://psa.gov.ph/content/unemployment-rate-december-2022-estimated-43-percent

•Statista, (202). Effect of ECQ on jobs due to COVID-19 Philippines 2020, by income. https://www.statista.com/statistics/1114518/philippines-effect-of-ecq-on-jobs-due-to-coronavirus-covid-19-by-income/

•Trinidad, (2022). Unemployment. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/unemployment/?

fbclid=IwAR38eZdUweuRRqSpr27PCK64JqM3V_aEeeFO8oLNNxbWVXTjGcQHHTJRyGM+was+16.4+percent.
 MEMBERS:
•Alcantara •Lao
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•Amir •Padagas
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•Kasim •Tee