LABOR SUPPLY,

DEMAND FOR LABOR,

WAGES AND OUTPUT
Human resource- is one of the Philippines top resources
-117,337,368 is the country’s total population for 2023
-51,270,000 are above the age of 15 or the legal age to work (labor
force).
Labor Supply- comprised of the available labor force who are willing
and able to work and are waiting for deployment.
Labor demand- refers to the industry’s total available job vacancies
from the previous cycle or year up to present
-job mismatch is a strong possibility that not all slots will be filled.
Wages- payments made in exchange for the time and effort exerted or
given by an individual who was able to either produce a good or a
service.
ANALYSIS OF DEMAND AND SUPPLY FOR LABOR
Example1.
Increase in labor supply from SL1 to SL2, while the demand for labor
remains constant. A shift of labor supply to the right results in decreased
wage per hour from Php 300 to Php 250 and increased quantity from 24
million laborers to 30 million laborers.
Example 2.
Decrease in labor supply from SL1 to SL2 while demand for labor
remains constant. A shift of labor supply to the left results in increased
wage per hour from Php 275 to Php 300 and decreased quantity from 30
million laborers to 24 million laborers.
OVERSEASFILIPINO WORKERS
-70’s and 80’s labor migration in the Philippines started
- Saudi Arabia sought the expertise of Filipino engineers, foremen,
architects, welders, and carpenters.
-increased the number of Filipino workers overseas
 BRAIN DRAIN
- in the Philippines refers to the phenomenon of skilled and educated
professionals leaving the country to work abroad.
THE PHILIPPINE PESO AND THE FOREIGN EXCHANGE RATE
Foreign exchange
-is the conversion of Philippine currency into an international currency (US
Dollar)
-a dollar means either the international currency’s economy is
getting
weaker
-a weaker dollar means either the local currency is getting stronger
or
the international currency is getting weaker.
- American dollar is used for foreign transactions, a sudden increase
in its supply will have an inverse effect on the dollar-to-peso ratio
resulting in the dollar becoming weaker.
- if supply for dollar decreases due to less remittances, then the
Reasons for devaluating the peso against the dollar
- value of the dollar against the peso is dependent on the supply and demand
for dollars.
- dollar supply comes from dollar holders like OFWs, or foreign
counterparts whose objective is to put in their dollars where they see
profitable.
- if the dollar is in demand in a country like the Philippines, then its value
will will appreciate against the peso and dollar holders will see this as a
signal to pour in the currency to take advantage of the high exchange
rate and withdraw the same if the exchange rate is low.
When do we experience an appreciating peso against the dollar?
- in the Philippines we experience a cycle where there is an influx of dollars
during the last quarter of every year when OFWs remit their
earnings to their families in the Philippines.
- if the demand for dollars does not change, then the value of the dollar will
1. Fixed exchange rate- is a
regime applied by a government or central bank that ti
es the country's official currency exchange rate to anot
her country's currency or the price of gold
.

2. Flexible exchange rate system is the exchange

system where the exchange rate is dependent upon
the supply and demand of money in the market.
CONTEMPORARY ISSUES
FACING THE FILIPINO
ENTREPRENEUR
INVESTMENTS
- is a product that people buy with the hope that they will be beneficial or
will generate income in the future.
Classification of investment
long-term investment
- are assets that an individual or company intends to hold for a
period of more than three years.
- example: is buying a property or engaging in real estate.

Short-term investment
- also known as marketable securities or temporary investment, are
financial instruments that mature within one year or
can be easily liquidated.
- example: savings and time deposits
PROBLEMS UNDER DIFFERENT MARKET STRUCTURES
Market structures – are different compositions of sellers and distinguishing
quality of goods.
Pure Competition
- is a market structure where there are many buyers and sellers.
- consumers and suppliers are price takers
- selling homogeneous products
- perfect knowledge of products on the part of buyers and sellers.
- freedom of firms to leave or enter the industry.
- TR > TC
- TR = P X Q
- TC = FC + VC
Examples: Fish, Fruit, and Vegetable Vendors
 Monopoly
- is a market structure where there is only one seller that represents the whole
industry.
- from a Greek word “to sell alone” and price maker
- there is only one good or service with no close substitutes
- price discrimination (changing price for different people).
Issues: improvement of its products, lacks of efficiency (absence of competition)
Examples: Davao Light and Power Company
Oligopoly
- is where players are the same or there are no disparities between them.
- there is a dominant player among several players
- in a perfect collusion, where there is a dominant player and homogenous products. Few
sellers
- restrictive trade practice (Restricting entry of new competitors into a market)
Examples: Automobiles, Soda or soft drinks company’s, Pharmaceuticals' Company
 Monopolistic Competition
- consists of different products with many sellers and many
buyers
- products belonging to the same industry seem to be identical,
but they are not.

Products of monopolistic competition are those that have

many competing sellers, but are differentiated by quality,
price, marketing, or other features and target markets.
Examples: shampoos and fast-food chains