CONTEMPORARY

ECONOMIC ISSUES FACING

THE FILIPINO
ENTREPRENEUR
 CONTEMPORARY ECONOMIC ISSUES
FACING THE FILIPINO
ENTREPRENEUR

Labor Migration
PHILIPPINE PESO Unemploymen Inflation Taxes
AND FOREIGN and the Overseas t
CURRENCIES Filipino Workers
 PHILIPPINE PESO AND FOREIGN
CURRENCIES

Philippine Peso

The Philippine peso (PHP), or 'piso' in Filipino, is

the official currency of the Philippines. The symbol
of the Philippine peso is ₱.
 PHILIPPINE PESO AND FOREIGN
CURRENCIES

Foreign Currencies

Examples of Foreign Currencies

- U.S Dollars
- Japanese Yen
- Korean Won
 PHILIPPINE PESO AND FOREIGN
CURRENCIES

Peso-Dollar/Euro
Exchange Rates
 PHILIPPINE PESO AND FOREIGN
CURRENCIES

Peso-Dollar/Euro
Exchange Rates
 PHILIPPINE PESO AND FOREIGN
CURRENCIES

Peso-Dollar/Euro
Exchange Rates
PHILIPPINE PESO AND FOREIGN
CURRENCIES

Factors affecting the Exchange Rates

- Inflation
- COVID-19 Pandemic
- Interest Rates
- Account Deficits
PHILIPPINE PESO AND FOREIGN
CURRENCIES

Problem faced by entrepreneurs

- Exchange Rate Changes

PHILIPPINE PESO AND FOREIGN
CURRENCIES

Solution

- Stay informed
Another distinct feature of Philippine labor is the growth of
laborers whom we call the OFWs or the Overseas Filipino
Workers. Primarily because of a high unemployment rate in
the country, currently at 6.4%, Filipino have started to find
work in other countries. In addition to this, migration is also
affected by wage gaps among countries. Because wages are
higher in the developed economies, Filipino teachers,
engineers, doctors, nurses and other health professionals
and technical workers have to migrate.
Labor Migration and the Overseas
Filipino Workers
What is Migration?
The word migration derives from the Latin verb
“migrare”, which means “to move from one
place to another.” By the broadest definition,
migration refers to any movement of people,
either temporary or permanent, from one place to
another.
Labor Migration is a livelihood strategy for millions of Filipinos in
search of better employment opportunities. It is an integral part of the
social and economic fabric of the country. Migration is an agent for
development and an important contributor to poverty reduction.
Overseas Filipino Workers (OFWs) are Filipino citizens who reside in
another country for a limited period of employment.
Did you know that over 10 million Filipinos work abroad, making the
Philippines “one of the biggest export countries of labor?”
Some of you might ask, why do people especially Filipinos migrate
into other countries?
Here are the reasons why so many Filipinos want to work
overseas:
Scattered all over the world, our overseas Filipino workers have been hailed as our
modern-day heroes, contributing to the growth of the economy and sending millions of
dollars to their families back home in the Philippines.
• The lack of jobs in their native land, and the low wages for whatever jobs are available
are the main reasons Filipinos, both male and female, try to find work in foreign
countries.
• Oversupply of workers has resulted in low-wage levels. Insufficient jobs in relation to
the available labor supply has also led to these low-wage levels since workers compete
among each other for these limited job openings. Those unwilling to work at these
low-wage levels look for greener pastures, which they find in foreign countries. They
do a wide variety of jobs: professionals, health workers, caregivers, engineers and
construction workers, entertainers, and teachers.
What are the possible solutions for labor migration?
Here are a few recommendations based on IOM’s Migration Governance Framework:

• Countries should promote stability, education and employment opportunities and reduce
the drivers of forced migration, including by promoting resilience, thereby enabling
individuals to make the choice between staying or migrating.
• The collection, analysis and use of credible data and information on, among other things,
demographics, cross-border movements, internal displacement, diasporas, labor markets,
seasonal trends, education and health is essential to create policies based on facts, that
weighs the benefits and risks of migration.
• Regional cooperation can help minimize the negative consequences of migration and
preserve its integrity. It can also contribute to regional and global development goals by
improving human capital through sustainable development and ensuring longer-term
economic growth
 Unemployment

What is Unemployment?

It refers to a situation where a person actively searches

for employment but is unable to find work.
 Unemployment

Unemployment Rate

This is used to measure of unemployment. It’s calculated

by dividing the number of un employed people by the
number of people in the labor force.
 Unemployment

Unemployment
Rate
 Unemployment

Categories of Unemployment

Voluntary - it means that a person left their job

willingly in search of other employment.

Involuntary -it means that a person was fired

or laid off and must now look for another job.
 Unemployment
Types of Unemployment

Frictional Unemployment - This type of unemployment is usually

short-lived. After a person leaves a company, it naturally takes time to find
another job.
Cyclical Unemployment- This type of unemployment the variation in the
number of unemployed workers over the course of economic upturns and
downturns, such as those related to changes in oil prices.Unemployment rises
during recessionary periods and declines during periods of economic growth.
 Unemployment
Types of Unemployment

Structural Unemployment- comes about through a technological

change in the structure of the economy in which labor markets
operate.
Institutional Unemployment- unemployment results from long-
term or permanent institutional factors and incentives in the economy
such as government policies that has a high minimum wage floors.
 Unemployment

Problems

-Reduced income
-Health problems
-Negative familial effects
-National Income will go down.
 Unemployment

Solutions:

-Think of unemployment as a temporary setback

-Reach out to friends and family
-Create new jobs
 Inflation
What is Inflation?

Inflation is a generaI in prices and fall in the purchasing value of money. This
is an inflation when the prices of goods and services are higher, some prices
stay the same or even fall. While other prices rise very suddenly,
Inflation is very bad for many parts of the economy especially for the
entrepreneurs. The first way inflation can impact new entrepreneurs is the
increased prices in the market place. When inflation rises, every aspect of a
business becomes more expensive.
 Inflation

For example:

Higher cost of services can affect the amount of cash you have on
hand. When prices go up, some people will not buy the goods you
sell because they cannot buy as much as they need or want. The
demand for goods and services go down when prices go up, this
means less goods are being sold.
 Inflation

Solution:

One way to solve inflation is to control the money supply in

the economy. If the money supply goes down, the demand
for goods reduce, causing a price fall.
 Taxes

What are taxes?

A tax is a mandatory payment or charge collected by

local, state, and national governments from individuals
or businesses to cover the costs of general government
services, goods, and activities.
 Taxes

Problems of tax on entrepreneurs

The higher the tax rate, the more capital is taken out of the
hands of the entrepreneur and into the hands of the
government. Therefore, theory holds that higher tax rates
leave entrepreneurs with less money to reinvest in their
businesses.
Taxes

Solutions to counter this problem

-Track and claim all kinds of deductions

-Get medical insurance
-Donate to charity
-bookkeep diligently
 Taxes
Track and claim all kinds of deductions

If you keep track of all your operating and overhead expenses,

you can claim them as allowable deductions to reduce tax legally.
Of course, the allowable deduction must meet certain criteria: It
must relate to your business, while still in the reasonable amount
and complying with the withholding tax requirements, supported
by documents and not contrary to law.
Taxes

Donate to charity

Similar to medical insurance, donating to

charity can bring your taxes down. Plus you
get to help others.
 Taxes

Bookkeep diligently

To avoid incurring penalties or missing

important steps, take your accounting
seriously and hire a professional who can do
this well.
Thank You For Listening!