Social Studies Report

UNEMPLOYMENT

Presented by: Annika Tejerero and Charisse Velacio

What is unemployment?

Unemployment is a term referring to individuals who are employable and are actively searching for employment but are unable to find work. Included in this group are those people in the workforce who are working but do not have an appropriate job.

Unemployment in the Philippines

Having a high unemployment rate in the Philippines is a major issue, and there are many reasons for it. Filipinos looking for work can find themselves unemployed due to several factors, including education, location, technology, and more specific job market issues like labor market frictions or seasonal factors.

The ongoing COVID-19 pandemic has brought about undeniable adverse impacts to all sectors of the Philippine economy, with the Philippine Statistics Authority's (PSA) latest Labor Force Survey (LFS) reporting that there are currently 3.5 million unemployed Filipinos and estimating the unemployment rate at 7.4% (2021). Unemployment rate in September 2022 stood at 5 percent, the lowest in more than two years, the Philippine Statistics Authority (PSA) reported Tuesday.

What are its

Causes

and

Effects

CAUSES

Unemployment can be caused by a reduction in aggregate demand or the failure of the labor market to absorb the existing workforce. The effect of unemployment includes social deprivation and affects the physical, mental and psychological well-being of the individual. There are a number of reasons for unemployment. These include recessions, depressions, technological improvements, job outsourcing, and voluntarily leaving one job to find another.

EFFECTS

Unemployment can result in debt and poverty, and the government has to take care of these people, hence welfare spending would also increase at the same time. In cases where unemployment is very high, there would be a budget deficit, due to a combination of the two, loss of tax revenue, and increased welfare spending. Unemployed workers are clearly in worse health than their employed counterparts. They are less self-confident, appear overwhelmed by their problems, and report markedly higher diagnosed mental disorders. Mental disorders such as depression or chronic anxiety could be the result of unemployment, but it could also be that poor mental health leads to job loss or the inability to find employment. It may produce important non-monetary and social consequences related to the loss of work relationships, self-esteem, sense of control, the meaning of life, and time structure that may all negatively affect (mental) health.

• Change in Industrial Technique
• Policy regarding seasonal unemployment
• Change in the education system
• Expansion of Employment exchanges
• More Assistance to self-employed people
• Full and more productive employment
• Increase in Production
• More Importance to employment programs
• High rate of capital formation
• Industires in the co-operative sector
• Decentralisation of industrial activity
• Population control

What are the possible solutions to solve unemployment?