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Unemployment

MLS II-D, GROUP I


Babol
Braza
Gerapusco
Mogato
Roxas

Content
I. Definition
II. Classification
III. Causes
IV. Effects
V. Unemployment Statistics
VI. Policies on Labor and Employment

What is unemployment?
An economic condition marked by the fact that
individuals actively seeking jobs remain
unhired.

Voluntary- a person is out of job because of his own desire to not


work on the prevalent or prescribed wages
Involuntary- a person is separated from remunerative work and
devoid of wages although he is capable of earning his wages and is
also anxious to earn them

Cyclical- real unemployment; economic downturns in the


business cycle
Disguised- This is when people do not have productive full-time
employment, but are not counted in the official unemployment
statistics
Structural- occurs due to technological changes, changing patterns
of demand, changes in the structure of economy
Seasonal- occurs when demand for labor in certain industries
changes on a seasonal basis
Frictional- occurs when workers are between jobs

Causes

Lack of motivation/dependency on others.


Demand for highly skilled labor
Illiteracy
High Population Growth
Absence of Employment Opportunities
Seasonal Employment
Changing Technology
Faulty Human Resources planning at the
Central/State Government
Lack of planning and execution in Education/Technical Education
Lack of Capital and Technical Know how
Lack of skill development/Vocational Training programmes
Frequent changes in Political Systems.

Effects
At individual level
Mental stress
Loss of self esteem
Directly linked to poverty
At social level
Civil Unrest
Law and Order Problem
Loss of Tax Revenue for Government
At country level
higher payments from state and federal governments for unemployment benefits
Inflation
Decreased spending power
Recession

Unemployment Statistics
WORLD STATISTICS

Source: http://www.tradingeconomics.com/country-list/unemployment-rate

Philippines
Philippines
NCR - National Capital Region
CAR - Cordillera Administrative
Region
Region I - Ilocos
Region II - Cagayan Valley
Region III - Central Luzon
Region IVA - CALABARZON
Region IVB - MIMAROPA
Region V- Bicol
Region VI - Western Visayas
Region VII - Central Visayas
Region VIII - Eastern Visayas
Region IX - Zamboanga Peninsula
Region X - Northern Mindanao
Region XI - Davao
Region XII - SOCCSKSARGEN
Region XIII - Caraga
ARMM - Autonomous Region in
Muslim Mindanao

2014Q 2014Q 2014Q 2014Q


1
2
3
4
7.5
7
6.7
6
11.2
10.4
10.3
9.8
6.5
5
4.8
5.6
9.3
9.2
7.8
7.5
3.8
4
4
3
8.8
8.6
8.3
7.4
8.9
9
8
7.1
5.1
4.6
4.1
4.5
7.5
6.1
6.5
4.9
6.6
7.1
6
4.3
6.6
5.9
5.9
5.4
6.2
5.5
5.6
4.2
4.6
3.2
2.7
7
5.3
5.3
5.8
6.4
5
6.2
5.5
4
3.4
4.2
2.9
7.6
5.9
5.6
4.2
3.8
3.5
3.9
2.9

SOURCE: http://econdb.pids.gov.ph/tablelists/table/627

Policies to reduce side


unemployment

Education and Training. The aim is to give the long term unemployed new skills
which enable them to find jobs in developing industries, e.g. retrain unemployed steel
workers to have basic I.T. skills which helps them find work in service sector.
Reduce Power of trades unions. If unions are able to bargain for wages above the
market clearing level, they will cause real wage unemployment.
Employment Subsidies. Firms could be given tax breaks or subsidies for taking on
long term unemployed. This helps give them new confidence and on the job training.
Stricter Benefit requirements. Governments could take a more pro-active role in
making the unemployed accept a job or risk losing benefits. After a certain time
period the government could guarantee some kind of public sector job (e.g. cleaning
streets). This could significantly reduce unemployment.
Improved Geographical Mobility. Often unemployed is more concentrated in
certain regions. To overcome this geographical unemployment, the government could
give tax breaks to firms who set up in depressed areas. Alternatively, they can give
financial assistance to unemployed workers who move to areas with high
employment.

Philippine Policies on labor and


employment
Department on Labor and Employment(DOLE)

Jobstart Philippines- JobStart is a partnership program of the DOLE, Asian

Development Bank (ADB), and the Canadian International Development Agency


(CIDA) which aims to increase the employability of the youth by providing them
access to technical and life skills training demanded by employers and by mentoring
and tooling them to improve their job searches and outcomes.
The project will also finance vouchers that will enable some 1,600 youth-beneficiaries
to gain work experience in companies through on-the-job training.
Disbursement Acceleration Program (DAP)- DOLE funded five programs that
did the following: benefited 30,552 unemployed youth and vulnerable workers,
specifically those displaced by calamities and emergencies; accelerated
implementation of the new labor-laws compliance program, a DOLE reform; and
enhanced labor market information delivery.

Government Insurance Service System(GSIS)


Republic Act no. 8291- The unemployment benefit is paid when a permanent
government employee who has paid the required 12 months integrated contributions
under RA 8291 is involuntarily separated from the service as a result of the abolition
of his office or position usually resulting from reorganization. The benefit is in the
form of monthly cash payments equivalent to 50% of the average monthly
compensation (AMC). The duration of the benefit depends on the length of service
and ranges from 2 months to a maximum of 6 months.

Technical Education and Skills Development


Authority(TESDA)
TESDA will spend the bulk of foreign grants to projects that address unemployment
problem in Mindanao and the low absorption rates of technical-vocational graduates
in the region to the workforce.
TESDA director general Joel Villanueva said the agency is now identifying key
employment generation sectors (KEGS) in the Southern Philippines, as well as
determine the kind of assistance needed by different TESDA centers in the area to
further improve their capability to produce competent technical-vocational graduates.

Philippine Overseas Employment Administration (POEA)


Sustainable recruitment of nurses- The BAs International Placement Services
(ZAV) and GIZ have established a joint project to place 2,000 qualified nurses with
German companies by 2014.
The migration from the participating countries of healthcare personnel who can
demonstrate a suitably high standard of training presents a wide range of
opportunities for everyone involved and generates threefold benefits (triple win)