thesis statement about unemployment in the philippines

Unemployment Problem In The Philippines

The following sample essay on Unemployment Problem In The Philippines discusses it in detail, offering basic facts and pros and cons associated with it. To read the essay’s introduction, body and conclusion, scroll down.

Causes of Unemployment in the Philippines

Even with a booming economy, there are still some countries experiencing the imminent problem of unemployment. This paper analyzes the major factors affecting the high unemployment rate in the Philippines. The country has showed some positive progress on their economy; however, its unemployment rate still ranks highest among its neighboring Southeast Asian countries.

Effects of unemployment in the Philippines

Unemployment affects so many aspects of the economy, so knowing the root causes of unemployment will help the countrys government to act quickly in response to fluctuations in unemployment may be able to blunt the effects of an economic downturn or maximize the positives of an improving economy. Philippines met its government projections of 6%-7% growth range; the countrys gross domestic product (GDP) growth increased to 6.

6% in 2012 compared to 3. 9% in 2011 (Central Intelligence Agency, 2013).

Despite the Philippines’ economy doing well of late in growing its GDP, the country still faces enormous challenges in generating more Jobs and quality employment for its people. Based on the July 2012 Labor Force Survey (LFS), the unemployment rate in the country is 7% (National Statistics Office, 013). The unemployment fgures for the Philippines in 2012 are among the worst in Asia, higher than its South-East Asian neighbors according to the Bureau of Labor and Employment Statistics (BLES) of the country (Nepomuceno-Rodriguez, 2012).

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Youth Unemployment Rate In The Philippines 2019

The disparity between the high GDP growth and the unemployment rate attributed the result to the relatively slower economic growth of the country. Most of the unemployed in the Philippines by educational attainment: 21 . 7% were college graduates, 13. 6 percent were college undergraduates, and 32. 8 percent were high school graduates (National Statistics Office, 2013). By understanding what are factors ffecting unemployment, it can give the countrys government an overview on how respond on this specific economic problem.

With the worsening economic problem, several reasons why unemployment is high in the Philippines are identified: rapid population growth, lack of quality education, and environmental factors.

Factors causing the high unemployment rate

Rapid Population Growth . The more probable cause of unemployment in the Philippines is the unavailability of jobs provided. With an estimated population growth rate of 1. 84%, the countrys population will be approximately 105 million in the near future which is ranked as 3th compared to the world (Central Intelligence Agency, 2013).

There are millions of people needed Jobs and only few can provide one. Overpopulation is one of the key factors in the growing unemployment in the Philippines. The growth of population directly encouraged the unemployment by increasing the labor force. As a relative effect, the country showed a high total dependency ratio rate of 61. 4% (Central Intelligence Agency, 2013). As we discussed in class, the Vicious Circles of Poverty Theory in relation to population growth states that the poorest countries also tend to ave the highest dependency ratios that is, the percentage of population that is not of working age.

The rapid increase in the population indirectly affected the consequence, more resources get used up in private consumption such as food, clothing, shelter and son on in public consumption like drinking water, electricity medical and educational facilities. This has reduced the opportunities of diverting a larger proportion of incomes to saving and investment. Thus, population growth has created obstacles in the way of first growth of the economy and underdeveloped the growth of Job opportunities.

Lack of Quality Education . One cause of unemployment in the Philippines may be lack of quality education. With the increasing demands of the fast developing world, it is really hard to find Jobs when an individual is not a graduate of a particular skill or profession. Though the Philippines is a literate country, the country has literacy rate of 95. 4% for the total population which means that ages 15 and over can read and write (Central Intelligence Agency, 2013).

However, this is not enough to be able to reach the qualifications of most in-demand Jobs because even mere sales ladies nowadays are required to have at least 1-2 years in college education. The country faces a competitive world and it’s a must to reach the norms of development. Thus, a high educational attainment, which most Filipinos lack, is one way to uplift the unemployment rate of the country. Environmental Factors Some areas of the Philippines solely rely on agricultural Jobs as their means of employment. 2% of the labor force is in agriculture, according to the CIA World Factbook. But, agriculture in the country is basically seasonal affair and heavily affected by natural hazards like any other Southeast Asian nations. World Bank has identified the Philippines as one of the most hazard-prone countries in the world; the Philippines also sits along the Pacific Ring of Fire, an area prone to typhoons, floods, drought, earthquakes and volcanic activity (The World Bank, 2013). The aftermath of these calamities heavily affect the labor force of the country.

For example, devastations caused by massive flooding due to super-typhoons will affect areas that rely on agricultural lands. CONCLUSION The Philippines is booming, but the current growth trajectory is not significantly Job- generating. The country’s unemployment crisis will remain unresolved without a major structural change in the economy like an industrial transformation and an gricultural modernization; provide quality education for its citizen to have better Job opportunities; and improving governance and fighting corruption to encourage foreign investors.

As of 2012, there is only 15% of the labor force in industrial sector and 32% in the agricultural sector (Central Intelligence Agency, 2013). Because of the Philippines’ geographical location, it should build more infrastructures for the people that would give them a better Job opportunities and less vulnerability to sudden income difficulties and natural disasters; and most importantly, the government hould re-focus on the countrys industrialization program that encourages value- addition on manufacturing or services. Philippines is constantly aiming to improve the quality of education for its people.

As shown to the government’s 2013 expenditure, the Department of Education was the most funded with 230 Billion Pesos for its budget (Department of Budget, 2013). However, Philippines, infamously known for corrupt government officials, the country scored 32 out of 100 in the 2012 corruption perception index as scores range from O (highly corrupt) to 100 (very department may not be allocated properly and having a transparent and accountable overnment demonstrate a stable economy which boosts foreign investors to invest to the country which will create more Job opportunities for the people.

REFRENCES Central Intelligence Agency. (2013). The world factbook: Philippines [Data file]. Retrieved from https://www. cia. gov/library/publications/the-world-factbook/geos/ rp. html Department of Budget and Management. (2013). National expenditure program [Data file]. Retrieved from http://www. dbm. gov. phnpage_id=3610 National Statistics Office. (2013). Labor force [Data file]. Retrieved from http:// www. census. gov. ph/content/employment-rate-July-2013-estimated-927-percent Nepomuceno-Rodiguez, D. A. (2012).

Philippines tops neighboring countries in unemployment. Business World Online. Retrieved from http:// www. bworldonline. com/content. php? section=Labor=Philippines-tops- neighboring-countries-in-unemployment=52743 The World Bank. (2013). Data: Philippines [Data files]. Retrieved from http://sdwebx. worldbank. org/climateportalb/ home. cfm? page=country_profile=PHL=NaturalHazards Transparency International. (2013). Corruption by country [Data file]. Retrieved from http:// www. transparency. org/country#PHL_DataResearch

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The Philippines’ Unemployment, Inequality, Poverty Research Paper

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Introduction

Historical economic context, unemployment, addressing unemployment, poverty, and inequality.

The Philippines has vast opportunities for growth and development as the country has shown a significant improvement in the overall political, social, and economic processes. Compared to the previous decades, the rates of unemployment have decreased along with poverty statistics, showing an overall prospective image of the country’s future. However, despite the strong emphasis of the government on income equality and poverty reduction along with the growth of GDP, both poverty and economic and social inequality remain persistent in the Philippines. This paper will explore the economic background of the country with a specific focus on unemployment, poverty, and inequality. Recommendations for eliminating these issues will be made to suggest how the Philippines can decrease the impact of the negative conditions on the population.

It is essential to offer a context for understanding poverty and unemployment in the Philippines. Immediately after 1945, a brief economic increase could not be sustained for a long time, with food deficits becoming a significant problem. During that time, the country’s Gross Domestic Product (GDP) depended on the export of timber, fibers, sugar, and coconuts to sustain the import of food. Manufacturing was inward-looking at that time, focusing predominantly on import-substituting, with the country’s products intended predominantly for being consumed domestically instead of being imported overseas (Leonor, 2018). High tariff limits negatively influenced inefficient industries while the Philippines’s over-valued currency and artificially low capital interest rates made those industries capital-intensive. These conditions reduced the ability of the country to absorb labor in gainful employment.

Farming communities that developed after the end of WWII were economically inefficient areas. The expenditures of the government were focused on big towns and cities while the surplus produced by farmers was taken over by landowners and intermediaries. Therefore, the natural response to the mistreatment of farms was for peasants to move to larger cities, especially Manila, in pursuit of work (Leonor, 2018). With the increase of education migration, the depletion of rural areas and educated specialists caused congestion in cities, thus contributing to open unemployment and other related social problems in cities.

In 1961, the aggregate rate of unemployment in the Philippines was 8.5%, 6.1% in 1965, and 7.8% in 1968 (Leonor, 2018). The figures indicate a relatively narrow variation band despite the timing of data collection. However, between 1974 and 1978, the unemployment rates ranged between 3.9% and 5.2%, suggesting that employment increased to levels at which the economy could be considered to be “running at full employment” (Leonor, 2018, p. 145). Nevertheless, it is essential to mention that the figures are no more than estimations that did not account for the time people spent at work as well as how much they earned. Hence, the estimations did not consider underemployment and the unemployment’s full arithmetic equivalent. According to Leonor (2018), that the direct estimates by the ILO Mission “showed that far from the 4%-8% range, unemployment in the Philippines could be placed at between 25%-34% of the labor force in 1971” (p. 146).

According to the latest Trading Economics (2019) data, in the June quarter, the unemployment rate in the Philippines dropped to 5.1% compared to 5.5% in the same quarter the previous year. The all-time highest rate of unemployment in the country was 13.9% in the first quarter of 2000, while the lowest was 4.7% in the fourth quarter of 2016 (Trading Economics, 2019). While the rates of unemployment may seem low, it is imperative to mention that the labor market of the country suffers significantly from the outflow of talent. As mentioned by Urrutia, Tampis, and Atienza (2017), around 2,500 Filipinos flee the country every day in pursuit of better work opportunities as well as to provide for their families. This trend is also associated with the increase of the population in the country, which does not allow for the positive development of employment. The researchers that aimed to forecast the unemployment rate in the Philippines found that estimated values would range in the 6% to 8% range, which are the figures found to be 72% closely relative to actual values (Urrutia et al., 2017). Such variables as labor force rate and population were identified as significant factors contributing to the unemployment rate in the country.

The lack of work for the population leads to a decrease in their income and the subsequent quality of life, thus contributing to rising poverty in the country. Poverty is defined as a “deprivation of essential assets and opportunities to which every human is entitled. Everyone should have access to basic education and primary health services” (Schelzig, 2005, p. 10). It is worth mentioning that between 1985 and 2000, the number of Filipinos living below the poverty line decreased by 10.5% (Schelzig, 2005). If to look at this figure in isolation, the reduction can be considered as a progress in terms of poverty rate; however, the magnitude of poverty increased by more than 4 million (Schelzig, 2005). This is linked to the boost in population’s growth over time. The population growth rate each year can be estimated to be around 2.3%, with the expectations to reach 105 million by 2020 (Schelzig, 2005). As a result of the rapid growth of the population, there are many young people, with the median age being 24.1 years in 2015 (Statista, 2016). As the comprehensive analysis of poverty is associated with a broad and multi-dimensional approach, it is essential to understand that the rate of poverty in the country does not mean that there are many poor people.

In 2015, the overall poverty rate in the Philippines was 21.6%, which means that every fifth citizen lives beyond the poverty line. The median spending capacity for these individuals is less than $2 per day, which many people, including children and youth are forced to work as street laborers or vendors to have enough money to feed themselves. The highest rates of hunger occur in the fishing and agriculture sectors where the majority of workers are poor (International Monetary Fund, 2015). Therefore, poverty represents a multi-dimensional phenomenon, which means that addressing the problem requires a broader focus. For instance, it is essential to consider human capital, which includes population’s education, skills, health, natural capital such as land, clear air, and forested areas, as well as physical, financial, and social capital. Additionally, communicating the connection between poverty and inequality is imperative for the understanding of the real impact of low income on the population.

A way of understanding inequality is calculating the contributions of various socioeconomic groups to aggregate inequality. In most regions, inequality has risen over time due to the increase in the population number and the decrease in the median age (Canlas, Khan, & Zhuang, 2011). As more people moved to large cities, abandoning the economy of small towns that require support, the distribution of income and life quality was becoming unfair. This means that both social and economic inequality represents major issues in the Philippines, where the gap is expected to increase with time. The degree of inequality has become so high that the Philippines became the state with the highest rate of social and social gaps in Southeast Asia. Importantly, the issue is not limited to personal wealth only.

Such aspects as educational opportunities, the unequal distribution of land, vocational capabilities, as well as general welfare programs, are also influenced by the widening disparity between the poorest and the richest members of society. With the pronounced economic inequality that became persistent in the past ten years, there has been an increase in the geographical disparity. For instance, in Mindanao, the second largest island in the Philippines, between 20% and 40% of families live below the poverty rate. However, nationwide, thirty most neglected and deprived provinces are home to one-third of the poorest families, resulting in generational poverty. It is also important to mention that, similar to the global trend of indigenous populations being more vulnerable to unstable economic conditions, in the Philippines, up to two million people belonging to ethnic groups of the nation are the most disadvantaged.

Creating more and better jobs for the population of the Philippines is a challenge for the government. Although, with the sustained growth of the GDP of 7% per year and the elimination of constraints in such fast-growing sectors as Business Process Outsourcing (BPO), it is possible to accelerate the creation of jobs for the population. As the BPO industry is showing annual growth by 20%-30% in the Philippines, it is potentially possible for the formal sector to offer good paying jobs to around two million Filipinos over the next four years (Duke CGGC, 2016). BPO refers to the process of delegating service-type business processes to third-party providers. In the Philippines, BPO is expanding rapidly due to the generally low cost of living as well as the large population of young Filipinos with generally good skills of spoken English. However, the growth of BPO will not resolve the problem of unemployment alone. It is recommended that the government to implement a comprehensive set of reforms to create a business environment that will enable the private sector to create jobs and increase its human capital. Changes are also necessary to secure citizen’s property rights, open the country’s economy to more competition between companies, make business regulations less complex, as well as increase the private and governmental investment in education, health, and infrastructure.

To reduce the adverse impact of poverty on the population, it is first recommended for the government to invest in making birth control accessible to the poor groups. This will enhance family planning opportunities and ensure that families not to raise children in the environment of poverty. Empowering women by giving them more control over their bodies is expected to reduce the population’s growth as well as allow them to pursue career opportunities. It is recommended for the Filipino government also to offer more economic prospects for the population to enable access to employment, as suggested previously.

The key to reducing social and economic inequality in the Philippines is associated with the provision of better education, a higher quality of healthcare, social safety nets, as well as broader growth of the economy, specifically in agriculture. This points to the need for the government to work on the mentioned components of the economic and social well-being of citizens to increase equality. To achieve this, it is possible to collaborate with international organizations that provide resources to the vulnerable population to break the cycle of poverty and enhance the quality of life. Investments into education are essential for increasing the literacy of Filipinos, thus making them more prepared for their future careers. Improving achievement levels within areas such as English, science, and math is essential for creating a strong foundation that will serve as a basis for children’s further education.

To conclude the paper, it is noteworthy to mention that the Republic of the Philippines has vast growth opportunities since the economy is slowly improving, while unemployment rates are decreasing. The contribution from the BPO industry encourages the creation of job opportunities for young and educated Filipinos, thus increasing their contributions to the economy. However, despite the positive prospects, millions of people live beyond the poverty line and do not have the necessary resources to sustain themselves. The challenge is especially relevant when discussing the growing generations of Filipinos who are raised in unacceptable conditions. Although, through collaboration with relevant authorities in the sphere of healthcare, education, and social support, the Filipino government has the opportunity to reduce the burden of unemployment, poverty, and inequality. Future research on this topic can be done in regards to whether the current efforts of the government have been effective.

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Unemployment, Labor Laws, and Economic Policies in the Philippines

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• Jesus Felipe 2 &
• Leonardo Lanzona Jr. 3  

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Unemployment and underemployment are the Philippines’ most important problems and the key indicators of the weaknesses of the economy. Today, around 4 million workers (about 12% of the labor force) are unemployed and another 5 million (around 17% of those employed) are underemployed. This Reserve Army of workers is a reflection of what happens in the economy, particularly because of its incapacity to provide jobs (especially in the formal sector) to its growing labor force. The social costs of this mass unemployment range from income losses to severe social and psychological problems resulting from not having a job and feeling insecure about the future. Overall, it causes a massive social inefficiency.

The authors thank participants at the workshop, Employment Creation, Labor Markets, and Growth in the Philippines (19 May 2005, Manila) for their comments and suggestions on an earlier draft of the chapter. They also thank Rana Hasan for useful discussions on labor market issues.

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Felipe, J., Lanzona, L. (2006). Unemployment, Labor Laws, and Economic Policies in the Philippines. In: Felipe, J., Hasan, R. (eds) Labor Markets in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627383_7

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Exploring Interventions to Reduce Youth Unemployment in the Philippines

Even prior to the pandemic, the youth aged 15 to 24 years registered relatively higher unemployment rates compared to other age brackets. This problem was magnified during the pandemic as the youth were employed in the most affected sectors—retail, services, and tourism. This paper looks into the problem of youth unemployment. Current policies and programs are analyzed to possibly identify gaps that will help improve intervention. Policy proposals are also presented to help reduce youth unemployment in the country.

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ABSTRACT OF THE THESIS

The Characteristics of, and Extent of Unemployment among the Philippine High-Level Manpower

by Corazon M. Raymundo, Master of Arts in Demography (1971)

Tel. No.: +63 2 8981 8500 local 2457 / 2468 E-mail: [email protected]

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The impact of political freedom on economic growth: An analysis using system estimation and linear dynamic panel estimation , Mary Catherine A. Mercado

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Jobs in jeopardy: Explaining the dynamics of Philippine fiscal stimulus and monetary adjustments on unemployment , Arno Mikhail J. Azcarraga

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Returns to schooling, gender wage gap and discrimination in major urban labor markets in the Philippines, 2006 , Robert Dan Javier Roces

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Farmer's risk-balancing, consumption and optimal debt level , Almira Jazmin P. Esguerra

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Exploring determinant of giving---in the Philippines , Wei Ke Hai

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An economic inquiry on the nature of the existence of non-governmental organizations in Negros Occidental , Frances Mae L. Ferrer

Determinants of short-term interest rates in the Philippines : (an application of sargent's loanable funds model) , Janone K. Ong

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Aid effectiveness: an investigation on the developmental impact of selected aid-assisted road infrastructure projects in the Philippines , Rosalisa K. Alindahao

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An analysis of the Philippine rice production variability using the variance decomposition method: 1970-1991 , Jose Luis Alvin T. Catalan

Ozone depletion, global warming and the loss of biodiversity: Links to economic growth and trade openness (1973-1992) , Gerardo L. Largoza

An empirical analysis of the nature of female employment-fertility relationship among working women in Metro Manila , Concepcion G. Latoja

The characteristics and dynamics of the transfer of foreign technology in the Philippines 1979-1993 , Mark Anthony Barbaza Perez

Predicting the money multiplier a comparison of two approaches: the Philippine case , Victor C. Pontines

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The economic approach to litigation: a case of Philippine judicial procedure , Sinforoso R. Pagunsan

The economic approach to litigation: A case of Philippine judicial procedure , Sinforoso R. Pagunsan

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System of consumer demand equations--an empirical comparison of two functional forms , Cesar C. Rufino

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The use of multiple discriminant analysis in differentiating self-employed from non-self-employed graduates of the Sanayan sa Kakayahang Agrikultura (SAKA) program , Ma. Rochelle C. Galsim

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An econometric model of the demand, supply and price of forest product industry in the Philippines, 1970-1988 , Maritoni Carmela De Castro Matibag

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An analysis of sectoral labor productivity : the case of the Philippine manufacturing sector, FY 1956-1985 , Sik Stevens

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An analysis of the value and earnings of human capital in agricultural colleges and universities in the Philippines , Amelia Alidio. Biglete

An economic analysis of traditional soybean processing in the Philippines , Maria Luisa R. Soliven

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An annual macroeconometric model for the Taiwanese economy: 1961-1984 , Chou-Jen Sung

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An exploratory study on the time allocation of married women in a rural and in an urban environment , Ma. Salome C. Esposo

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Causes of Unemployment in the Philippines

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