LESSON 1

Analyzing The Effects

of Contemporary
Economic Issues
Affecting The Filipino
Entrepreneur
 Now, let us examine the lyrics of the song by
Judas entitled “Dukha”
DUKHA
Ako ay isang anak mahirap
Lagi na lang akong nagsusumikap
Ang buhay ko’y walang sigla
Puro na lang dusa
Paano na ngayon ang buhay ko.

Sa akin ay walang tumatanggap

Mababa raw ang aking pinag-aralan
Grade 1 lang ang inabot ko
No read no write pa ako
Paano na ngayon ang buhay ko

KORO:
Isang kahig, isang tuka
Ganyan kaming mga dukha
Isang kahig, isang tuka
Ganyan kaming mga dukha
What do you think are the
problems being stated in
the song? Identify.
According to the Atlantis Report, the
economy of the Philippines is the world’s
34th largest economy by nominal Gross
Domestic Product (GDP). 13th largest
economy in Asia, the 3rd largest
economy in the ASEAN after Indonesia
and  Thailand.
It is considered a highly industrialized country transitioning from an agricultural to services
and manufacturing in the year 2018. GDP at Purchasing Power Parity (PPP) was
estimated to be at ＄ 990 billion exporting semi-conductors and electronic products,
transport equipment, garments, copper products, petroleum products, coconut oil and
fruits. Major trading partners include Japan, China, United States, Singapore, South Korea,
Netherlands, Hong Kong, Germany,  Taiwan and Thailand.

It has been named as one of the Tiger Cub Economies together with Indonesia and
Thailand. Currently one of the Asian’s fastest growing economies.

It is the world’s epicenter of call centers because of the Business Process Outsourcing
(BPO) companies who trusted the Filipino workers here since Filipinos speak English
language fluently.

It ‘s revenues from the OFW’s remittances from all over the world has also put the
country’s economy into a stable condition.

However, there are still so many problems being faced by the

country. To name a few, these are poverty, lack of education,
unemployment  and corruption.
Proportion of Poor Filipinos registered at 21.0 percent in the First
Semester of 2018
Reference No.: 2019-053 
 Release Date: 10 April 2019 
 
Food and Poverty Thresholds
In the first semester of 2018, a family of five needed no less than PhP 7,337, on
average, to meet the family’s basic food needs for a month. This amount is the
food
threshold. On the other hand, no less than PhP 10,481, on average, was needed to
meet both basic food and non-food needs of a family of five in a month. This
amount is the poverty threshold. These are 10.9 percent higher than the food and
poverty thresholds from the first semester of 2015.    
Food threshold is the minimum income required to meet the basic food
needs, satisfying the nutritional requirements set by the Food and
Nutrition Research Institute (FNRI) to ensure that one remains
economically and socially productive. On the other hand, poverty
threshold is the minimum income required to meet the basic food and
non-food needs such as clothing, fuel, light and water, housing, rental of
occupied dwelling units, transportation and communication, health and
education expenses, non-durable furnishing, household operations and
personal care and effects.
Poverty among Filipino families and individuals
Poverty incidence among Filipinos families in the first semester of 2018
was estimated at 16.1 percent. This is defined as the proportion of
families whose income is below the poverty line to the total number of
families. This was estimated at 22.2 percent 1  in the same period in
2015.

In addition to, the thresholds and incidences, the PSA also releases
other poverty-related statistics in the report such as the income gap,
poverty gap and severity of poverty . The income gap measures the
average income required by the poor in order to get out of poverty,
expressed relative to the poverty threshold. The poverty gap refers to
the income shortfall (expressed in proportion to the poverty threshold)
of families with income below the poverty threshold, divided by the total
number of families. The severity of poverty is the total of the squared
income shortfall (expressed in proportion to the poverty threshold) of
families with income below the poverty threshold, divided by the total
number of families. This is a poverty measure that is sensitive to
income distribution among the poor.
Farmers, Fishermen and Children
consistently posted the highest poverty
incidence among basic sectors - PSA

The Philippine Statistics Authority (PSA) releases its

latest report today on the country’s official poverty
statistics for the basic sectors for 2015. PSA report
provides the estimates of poverty incidence for 9 of the 14
basic sectors identified in Republic Act 8425 or the Social
Reform and Poverty Alleviation Act using the income and
sectoral data from the merged Family Income and
Expenditure Survey (FIES) and Labor Force Survey
(LFS).
5 of the 9 basic sectors have higher
poverty incidence than the general
population

 Among the nine basic sectors, farmers, fishermen and

children belonging to families with income below the official
poverty threshold or poor families posted the highest poverty
incidences in 2015 at 34.3%, 34.0% and 31.4%, respectively.
These sectors consistently registered as the three sectors with
the highest poverty incidence in 2006, 2009 and 2012. Also, 5
of the 9 basic sectors consisting of farmers, fishermen,
children, self-employed and unpaid family workers, and
women, belonging to poor families, had higher poverty
incidence than the general population estimated at 21.6% in
2015
Table 1. Poverty Incidence for Basic
Sectors: 2006, 2009, 2012 and 2015
Considering data available in the Philippine Statistical System, poverty
estimates  for self-employed and unpaid family workers, which serve as a
proxy indicator for informal sector workers, have been generated since the
June 2012 release of the 2009 Poverty Statistics for the Basic Sectors.
1/ Basic sectors are not mutually exclusive, i.e., there are overlaps for
sectors (women may also be counted as senior citizens, farmers, etc.)
2/ Income derived from the FIES, which was used for classifying poor or non-poor basic
sectors, refer to the total family income and not necessarily the income of the individual in
a particular sector. Hence, total income of a family with two family members who are both
working, one is a farmer while the other is a fisherman, for example, is divided among the
family members to get the per capita income of each member including the  farmer. If the
per capita income is below the poverty threshold, then all the members of the family are
considered poor.
3/ Poverty estimates for the three other basic sectors, i.e., indigenous people, persons with
disabilities, and victims of calamities and disasters were not generated as information on
these were not available in the merged FIES and LFS, the major data sources for the
estimation of poverty statistics for the basic sectors. On the other hand,  poverty estimates
for the remaining two sectors, i.e., nongovernment organization, and cooperatives are not
generated as they are not applicable due to the nature of the sector (i.e., not individuals)
Poverty incidence among employed and
unemployed Filipinos who belong to poor
families registered at 18.0% and 16.4%,
respectively, in 2015

  
8 Similar in 2006, 2009 and 2012, employed
individuals belonging to poor families posted
higher incidence in 2015 with 18% compared to
the unemployed with 16.4%. It may be noted,
however, that the difference between the
poverty incidence among employed and
unemployed has declined through the years
 Table 2. Poverty Incidence for Employed and
Unemployed Population: 2006, 2009, 2012 and
2015
Source: Philippine Statistics Authority 
 a/ PSA releases poverty estimates for the employed population starting with
the June 2012 release of the 2009 Poverty Statistics for the Basic Sectors in
response to the need to measure the country’s performance towards
meeting the Millennium Development Goals (MDG) target on achieving full
and productive employment and decent work, i.e., indicator 1.6 or the
proportion of employed people living below the national poverty thresholds.
Similarly, poverty incidence for unemployed population was generated for
comparison.
 
b/ Poverty incidence among employed population refers to the proportion of
employed individuals who belong to poor families to the total number of
employed individuals. On the other hand, poverty incidence among
unemployed population refers to the  proportion of unemployed individuals
who belong to poor families to the total number of unemployed individuals.
Filipino Families re Most Deprived in Education

The Philippine Statistics Authority (PSA) releases

today the multidimensional poverty statistics based
on an initial methodology. It is called the
multidimensional poverty index (MPI) and serves to
complement the income-based measure of poverty.
The MPI is a measure that intends to capture
deprivations on various dimensions. Thus, the MPI
provides information on which dimension the
Filipinos are most deprived in. In the initial
methodology, there are 13 indicators identified
across the following four dimensions.
I. Education II. Health and Nutrition
dimension dimension

• school attendance • hunger

• educational • food consumption
attainment • health insurance
 

III. Housing, Water and

Sanitation dimension IV. Employment dimension

• ownership of assets • underemployment

• toilet facility   • working children not in
• source of water supply  school
• tenure status of dwelling
• housing materials
• electricity
Share of Each Dimension to MPI2
  The Education dimension had the largest share or
contribution to overall deprivation (MPI) at 36.5 percent
and 36.9 percent in 2016 and 2017, respectively. The
Health and Nutrition dimension comes next with a
contribution of 26.2 percent in 2016 and 27.5 percent in
2017.The share of Housing, Water and Sanitation to MPI
was 26.4 percent in 2016 and 27.4 percent in 2017.
Employment dimension, on the other hand, had the least
share to MPI
Incidence of Deprivation among Families per
Indicator
Among the 13 indicators, educational attainment
consistently had the highest incidence of deprivation
among families for 2016 and 2017 at 59.3 percent and
49.4 percent, respectively. These mean that 6 out of 10
families in 2016 and 5 out of 10 families in 2017 were
deprived of basic education; that is, 6 out of 10 families
had at least one family member aged 18 years old and
above who did not complete basic education in 2016
and 5 out of 10 in 2017. Conversely, hunger had the
least incidence at 0.3 percent and 0.6 percent in 2016
and 2017, respectively
 In 2017, the following indicators had the highest
incidence of deprivation among families for the other
dimensions:

INDICATOR DIMENSION
Health insurance at 32.1 Health and nutrition
percent
Ownership of assets at Housing, water and
34.3 percent sanitation
Underemployment at 6.6 Employment
percent
 It must be noted, though, that there was an
increase in incidence of deprivation from 2016 to
2017 in the following indicators and dimensions:

INDICATOR DIMENSION
 Tenure status of dwelling Housing, water and
sanitation
Hunger Health and nutrition
Employment Situation in
October 2019

More than 60 percent of the population 15 years

old and over are in the labor force

Of the estimated 73.5 million population 15

years old and over in October 2019,
approximately 45.2 million persons were in the
labor force, that is, either employed or
unemployed (Table 1 and Table 3). This
translates to a labor force participation rate
(LFPR) of 61.5 percent. Region X (Northern
Mindanao) had the highest reported LFPR with
66.8 percent while the lowest LFPR reported
was in Bangsamoro Autonomous Region in
Muslim Mindanao (BARMM) at 53.4 percent
(Table 1 and Figure 1)
Employment rate registers at 95.5 percent

The total number of employed persons in October 2019 was

estimated at 43.1million (Table 2). The reported employment
rate or the proportion of employedpersons to total labor force
was 95.5 percent(Table 1).Region IX (Zamboanga Peninsula)
had the highest employment rate with 98.1percent. Seven of
the 17 regions registered employment rates lower than
thenational figure of 95.5 percent. These regions are the
following: BangsamoroAutonomous Region in Muslim
Mindanao (BARMM) (93.4%),Region IV-A(CALABARZON)
(94.2%),Region I (Ilocos Region) (94.8%),Region V (Bicol
Region)(95.2%),Region III (Central Luzon) (95.3%),National
Capital Region (NCR) and RegionXIII (CARAGA) (95.4%).
(Table 1 and Figure 2)
More males are employed
than females

More than sixty percent (61.3%) of the

estimated 43.1 million employed persons in
October 2019 were males. The largest
number of the employed persons was in
age group 25 to 34 years with 27.7 percent
of the total employed. The 35 to 44 age
group comprised the second largest group
(23.0%), while the 45 to 54 age group
made up the third largest group (18.7%).
Employed females were reported at 38.7
percent of total employed persons (Table 3
and Figure 3).
More than half of employed persons are
in the services sector
Employed persons in the services sector remained the highest group
estimated at 57.7 percent of the total employed in October 2019. In
October 2018, it was estimated at 56.8 percent.

 The share of the industry sector to total employment posted a decrease

of 0.2 percentage points, from a contribution of 19.1 percent in October
2018 to 18.9 percent in October 2019. In the agriculture sector, a
combined share of agriculture, forestry, hunting and fishing sub-sectors
showed a 0.6 decrease, from 24.1 percent in October 2018 to 23.5
percent in October 2019. (Table 4 and Figure 4).

Among workers in the services sector, those engaged in wholesale and

retail trade; repair of motor vehicles and motorcycles made up the largest
percentage with 19.8 percent of the total employed (Table 4)
More than one-fourth of employed persons
are in elementary occupations

Across occupation groups, workers in elementary

occupations made up the largest percentage of 26.0
percent of the 43.1 million total employed population.
Service and sales workers were the second largest
group of workers with 18.6 percent. Skilled agricultural,
forestry and fishery workers were the third largest group
accounted at 12.0 percent (Table 5 and Figure 5)
Majority of employed persons are wage
and salary workers
Employed persons were categorized as wage and salary workers, self-
employed without any paid employee, employer in own family-operated farm
or business and unpaid family workers.

Wage and salary workers are those who work for private households,
private establishments, government and government-controlled
corporations and those who work with pay in own family-operated farm or
business. In October 2019, wage and salary workers registered at 64.2
percent. Those who worked in private establishments made up 50.8
percent and those working in government and government-controlled
corporations were accounted for 9.2 percent of the total employed
persons. (Table 6).
Classified according to broad industry group, 55.9 percent of unpaid
family workers were in the agriculture sector. In contrast, sixty percent
(60.8%) of wage and salary workers were in the services sector. More
than half (54.0%) of those who were employer in own-family operated
farm or business were in agriculture. Also, more than fifty percent (56.6%)
of self-employed without any paid employee were in the services sector
(Table 7 and Figure 6).
Majority of employed persons work full-time

Employed workers are classified as either full-time or part-time

workers. Full-time workers are those who work for 40 hours or
more while part-time workers work for less than 40 hours. Full-
time workers comprised 68.7 percent of the total employed
persons in October 2019. Those who worked for 40 to 48 hours
made up a larger proportion of 48.2 percent, while those who
worked more than 48 hours comprised 20.5 percent. Part-time
workers comprised 30.5 percent of the total employed. In
October 2019, part-time workers increased while full-time
workers decreased in terms of numbers and percentages. Mean
hours worked per week also decreased, from 42.8 in October
2018 to 41.8 in October 2019
Underemployment rate is registered at 13.0
percent
Underemployed persons were estimated at 5.6 million in October 2019. This
number represented 13 percent of the total employed persons (Tables1 and 2).
Underemployed persons are employed persons who express the desire to have
additional hours of work in their present job or to have additional job, or have a new
 job with longer working hours.
Among the broad industry group, underemployed persons were highest
in the services sector at 44.9 percent,37.8 percent in the agriculture
sector and 17.3 percent in the industry sector (Table 9 and Figure 7).

Visibly underemployed, or those persons who had been working for less
than 40 hours a week accounted for 60.5 percent, a large percentage
(77.4%) of which were in the agriculture sector (Table 9).
Unemployment rate is recorded at 4.5 percent
Of the total 45.2 million15 years old and over who are economically active,
2.1 million were unemployed which placed the country's unemployment rate
to 4.5 percent (Tables 1 and 2).
The regions with unemployment rates higher than the national figure of 4.5
percent are as follows: Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM) (6.6%),Region IV-A (CALABARZON) (5.8%), Region I
(Ilocos Region) (5.2), Region V (Bicol Region) (4.8%), Region III (Central
Luzon) (4.7%), National Capital Region (NCR) and Region XIII (Caraga)
(4.6%) (Table 1 and Figure 8).
Unemployed persons were highest in age group 15 to 24 years at 46.1
percent. More males (61.4%) were unemployed than females (38.6%)
(Table 3)
Across educational groups, 37.0 percent of unemployed persons were either
undergraduate or graduate of junior high school or the old curriculum, 37.8
percent reached college wherein 27.9 percent were graduates, 6.8 percent
were elementary graduates, 3.6 percent were Senior High School graduates,
and 4.4 percent were graduates of post secondary courses (Table 10)
Majority of persons not in the labor force are
women

Thirty-eight percent of the 73.5 million population 15

years old and over in October 2019 were not in the
labor force. These include housewives, students,
persons with disability, and those who have retired
from their employment. About seventy percent
(67.3%) were women.
By age group, 44.2 percent of persons not in the
labor force were in age group 15-24 years old. Among
the 15-24 years old age group 80.3 percent are
students or the reason why not in the labor force is
due to schooling (Table 3 and Figure 9)
CORRUPTION

According to Merriam Webster Dictionary, it is the

dishonest or illegal behavior especially by powerful
people (such as government officials or police officers.
It is an inducement to wrong by improper or unlawful
means (such as bribery)

Metro Manila (CNN Philippines, January 23)

  Corruption worsened in the Philippine government in
2019 as it ranked 113th of 180 countries studied on
their perceived political integrity. In its current ranking,
the Philippines obtained a score of 34, down by 2
points from 36 in 2018
 REPORTERS

Jeanylle Ular
● 12-Titus

Janelle Labador
● 12-Titus