UNEMPLOYMENT Group 1: Elizabeth Gopio Irene Jan Celiz Asher Escares Edlyn Joy Tamayor Thomas Mijares

Unemployment • Unemployment is when a person who is actively

searching for employment is unable to find work. •  The most frequently cited measure of unemployment is

the unemployment rate which is the number of unemployed persons divided by the number of people in the labor force.

MLS 2-F: Group 1

Types of Unemployment: • Frictional unemployment • Structural unemployment • Cyclical or Keynesian unemployment • Seasonal unemployment

MLS 2-F: Group 1

Frictional Unemployment • Frictional unemployment occurs when a worker moves

from one job to another. •  It is a result of imperfect information in the labor market,

because if job seekers knew that they would be employed for a particular job vacancy, almost no time would be lost in getting a new job, eliminating this form of unemployment.

MLS 2-F: Group 1

Structural unemployment • Structural unemployment arises when the qualification of

a person is nor enough to meet his job responsibilities. Conversely, structural unemployment arises when the salary offered to a person falls short of the minimum wage that can be paid for the concerned job.

MLS 2-F: Group 1

Cyclical unemployment • Cyclical or demand deficient unemployment occurs when

the economy is in need of low workforce. The demand for labor increases with the economy in the growth phase. Again, when the economy passes through depression, demand for labor decreases and the extra workers are released as the unemployed labor force.

MLS 2-F: Group 1

Seasonal unemployment • Seasonal unemployment occurs when an occupation is

not in demand at certain seasons.

MLS 2-F: Group 1

Causes of Unemployment • They quit their position and are looking for a new one. • They were laid off due to lack of work and haven't yet

been rehired. • Their company reduced the work force, and they are

seeking a new position. This can be due to a local condition, when the company closes a plant or division, or a national condition, when the economy slows and many companies reduce their work force.

• Changes in tastes as well as alterations in the climatic conditions. This may in turn lead to decline in demand for certain services as well as products.

MLS 2-F: Group 1

Causes of Unemployment • They have recently returned to the work force - perhaps

from pregnancy or attending school - and haven't yet located a position.

• The need for their skill set has gone down, and there are limited positions available, which may lead to unemployment until they train for a new position.

• Technology has reduced the need for their type of position.

• Disability

MLS 2-F: Group 1

Effects of Unemployment in our Economy • Spending Power • Unemployment financial costs • Reduced spending power of the employed • Recession

MLS 2-F: Group 1

Effects of Unemployment (others) • Mental health: Mental health problems like: Law self-

confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be – low self-esteem, inadequateness and feeling dejected and hopeless.

• Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals.

• Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc.

MLS 2-F: Group 1

Effects of Unemployment (others) • Political issues: Loss of trust in administration and the

government which may lead to political instability • Tension over taxes rise: Unemployment also brings up

discontent and frustration amongst the tax paying citizens. In order to meet the demands of the unemployment fund the government many a times may have to increase the taxes thus giving way to restlessness amongst the tax paying citizens.

•  Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people.

• Crime and violence: Increase in the rate of crime. MLS 2-F: Group 1

Effects of Unemployment (others) • Suicide cases: Increase in the rate of suicide attempts

and actual suicides as well. • Social outing: Unemployment may bring a decrease in

social outings and interactions with other people, including friends.

• Stigma: Unemployment brings with more than just ‘no work’. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed.

• Lose of skills’ usage: The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills.

MLS 2-F: Group 1

Solutions in Solving Unemployment Problem: 1.  Full development of small-scale, labor-intensive

industries 2.  Choosing appropriate labor-intensive technologies of

production 3.  Creating a more direct link between education and

employment 4.  Reduce rural migration 5.  Remove capital intensive bias 6.  Employment strategy package

MLS 2-F: Group 1

Philippines Unemployment Rate 1994-2015

Unemployment Rate in Philippines decreased to 6 percent in the fourth quarter of 2014 from 6.70 percent in the third quarter of 2014. Unemployment Rate in Philippines averaged 8.90 percent from 1994 until 2014, reaching an all time high of 13.90 percent in the first quarter of 2000 and a record low of 6 percent in the fourth quarter of 2014. Unemployment Rate in Philippines is reported by the National Statistics Office of Philippines.

MLS 2-F: Group 1

Statistical updates: Philippines

MLS 2-F: Group 1

Statistical updates: Philippines • Actual – 6.00 • Previous – 6.70 • Highest – 13.90 • Lowest – 6.00 • Dates – 1994-2014 • Unit - Percent • Frequency – Quarterly

MLS 2-F: Group 1

Statistical updates: Philippines In Philippines, the unemployment rate measures the

number of people actively looking for a job as a percentage of the labour force. This page provides - Philippines Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Philippines Unemployment Rate - was last refreshed on Monday, March 2, 2015.

MLS 2-F: Group 1

Philippines Jobless Rate Down to Record Low Philippines unemployment rate decreased to 6.0 percent in October of

2014 from 6.7 percent in July and hit a record low, as more people were employed in the services and agriculture sectors. Figures for the province of Leyte which was hit by typhoon Haiyan are not included.

Among unemployed people, 65.2 percent were males. The age group

15 to 24 years old accounted for 49.4 percent of total unemployed, while the age group 25 to 34 accounted for 30.2 percent. By educational attainment, 21.6 percent were college graduates, 13.5 percent were college undergraduates, and 33.3 percent were high school graduates.

Among regions, the National Capital Region (9.8 percent), Central Luzon (7.4 percent), and Calabarzon (7.1 percent) showed unemployment rates higher than the national figure (6.0 percent).

Meanwhile, the employment rate is estimated at 94.0 percent in October of 2014, up from 93.6 percent a year earlier. There were 38.8 million employed people: 53.7 percent worked in the services sector, 30.8 in agriculture and 15.6 percent in industry sector.

The country's jobless rate has been in a downward trend since the fourth quarter of 2013.

MLS 2-F: Group 1

Statistical updates: Asia

MLS 2-F: Group 1

MLS 2-F: Group 1

MLS 2-F: Group 1

MLS 2-F: Group 1

Statistical updates: World

Top 20 countries with Highest Unemployment

Rank Country Jobless Rate

1 Greece 27.4%

2 Spain 27.2%

3 South Africa 25.2%

4 Nigeria 23.9%

5 Croatia 19.6%

6 Portugal 17.7%

7 Cyprus 15.6%

8 Dominican Republic 14.7%

9 Slovakia 14.3%

10 Ireland 13.7%

11 Poland 13.5%

12 Slovenia 13.3%

13 Lithuania 13.1%

14 Eurozone 12.2%

15 Egypt 12.0%

16 Italy 11.9%

17 Bulgaria 11.6%

18 Finland 10.8%

19 France 10.8%

20 Columbia 10.7% MLS 2-F: Group 1

MLS 2-F: Group 1

MLS 2-F: Group 1

MLS 2-F: Group 1

Videos: • Unemployment rate: •  https://www.youtube.com/watch?v=K1J3diJsD9U

MLS 2-F: Group 1