IMPACTS OF UNEMPLOYMENT TO THE ECONOMY OF THE

PHILIPPINES

CONTEMPORARY WORLD

MR. JAYSON ALFRED K. ACHUMBRE

INSTRUCTOR

BACHELOR OF TECHNOLOGY AND LIVELIHOOD EDUCATION

MAJOR IN AGRI-FISHERY ARTS 1

SEAN CHRISTOPHER L. BARSOBIA

NOVA E. KIONISALA

ANGELA TABAC
 ACKNOWLEDGEMENT

First if all, we would like to express our heart-felt gratitude to our almighty

God who gives guidance and endless love for us throughout the challenging

journey. On the other hand, to our parents who give unending support and

pick us up amid downfalls. To our beloved instructor Mr. Jayson Alfred K.

Achumbre, for giving this kind of course of study. We are very challenged,

yet so functional to engage with for we learned something that can widen

our individual comprehension. Hence, we improve our critical thinking

through the help of relevant studies and sources that helps to provide and

justify our study. We also thank ourselves for not giving up and continue to

validate self- appreciation. Even when we woke up every morning whole up

tired, still we chose to strive and persuade for the successful outcome.

Lastly, it really taught us how to be more independent and we’ll informed.

And we don’t need to hesitate to convey that we are beyond grateful and

opportune.
TABLE OF CONTENTS

I. TITLE PAGE

II. ACKNOWLEDGEMENT

III. INTRODUCTION

IV. BODY/ REVIEW OF RELATED LITERARTURE

V. RESULT/ CONCLUSION

VI. RECOMMENDATION

VII. REFERENCES
 Unemployment is a very serious issue in the world. There are many

people who are workless and are not able to justify their aims as an

individual within the society. On the other hand, people who are not

working but actively searching for work are counted as unemployed. What is

unemployment? What are the impacts of unemployment to the economy of

the Philippines? What were the possible solution of unemployment to the

economy of the Philippines?

The state of being without any work both for educated and uneducated

person, for earning one’s livelihood is meant by unemployment. Unemployed

workers are people who are jobless, looking for work, and available for work.

It occurs when workers who want to work are unable to find jobs, which

lowers economic output. Unemployment is considered to be a key measure

of the health of the economy. Unemployment can be classified as frictional,

cyclical, structural, or institutional. Frictional type of unemployment is

usually short-lived. Cyclical unemployment as the result of businesses not

having enough demand for labor to employ all those who are looking for

work at that point within the business cycle. Structural unemployment is

long-lasting unemployment that comes about due to shifts in an economy.

Lastly, Institutional unemployment results from long-term or permanent

institutional factors and incentives in the economy. Unemployment can also

have a huge impact on life, especially on a person’s health. Being

unemployed is a very stressful situation nowadays because it can cause

health issues that are associated with stress, such as headaches, heart
disease, diabetes, altrophy, back pain and insomnia. Unemployment

includes severe financial hardship and homelessness, debt, tensions and

family breakdown, separation, boredom, crime, shame and stigma, erosion

of confidence and self -esteem. Unemployment also impacts society and the

economy as a whole. The longer a person is unemployed, the more likely

they are to experience potential negative effects and contribute to the

multiplier effect that unemployment has on the community. In this article,

we explore what it means to be unemployed and the effects that

unemployment has on an individual, society and the economy. The possible

solutions for Unemployment are the following statements: The Government

may implement job programs including DOLE, Subsidies for economic

growth that removes people burden and start-ups businesses to have a

better life source. Moreover, to conduct employee training programs to

enhance capabilities and skills. Hence, to widen their knowledge enable

them to be well trained, knowledgeable, and efficient. To avoid self-doubt,

hesitations and laziness. To provide enough self-vocabulary that helps

improve job. Be realistic and courageous that ready to face any various

consequences and are able to reach goals accordingly. In order to avoid

unemployment, people should Sustained economic growth, evaluate a move

that are beneficial and essential for the next chapter, avoid discrimination,

that commence a new opportunities and new beginning in life for a better

future and succeeding voyages.

To answer the question of this term paper, researchers gathered information

from different sources which helped to explain the problems presented in

readings.

Poverty is primarily due to low earning capacity of the poor and to

their limited access to regular and productive jobs. Behind these are the two

interrelated root causes of in-work poverty—low education of the poor, and

the scarcity of productive job opportunities.

From the beginning of the 20th century, unemployment was articulated as

an alarming issue in the world. In Almaden et al. (2012), four sources of

unemployment were given: seasonal, cyclical, structural, and frictional.

Unemployment has become an existing macroeconomic problem for

developing and even developed countries. Despite the efforts of the

government to lessen the rate of unemployment, the problem still exists and

it negatively affects the unemployed population. This study, seeks to

determine the common employment barriers and reason of unemployment

in the Barangay Tangaro, Catarman, Camiguin and its corresponding

negative effects financially, socially, and psychologically. The researchers

conducted interviews on random people in the barangay as well as to the

Barangay Officials and individuals where the findings are presented

descriptively. The results show that lack of self- preparation and job

opportunities are the major employment barrier aside from the known

demands of the market from job applicants. Financially, unemployment

affects the unemployed most significantly; social connections and the future

view of life are also affected negatively. This study gives data on the present

state of the unemployed in a rural area where local governments could

skilled and effective family planning if so.

Another scenario is that there are young people looking for jobs in the

market, but the employers in the private sector employers prefer the ones

with prior job experiences. Employers normally do not want employees who

are fresh out of school without prior skills and experience. Therefore, it is

obvious that mismatch of demand and supply is significant matter of

concern in this context (Kinga, 2005).

There are other social issues that have risen without notice or addresses, yet

stand as major effecting factors leading to unemployment of youth in both

urban and rural areas. There are capable and brilliant youth who could

have fared for scholarships and good opportunities if they were ever given

opportunities and guidance. Due to unfortunate circumstances inflicted by

various magnitude of poverty, lead them to miss those chances in their lives

with poverty, jobless, homeless and poor.

Based on such available information it was suggested that the focus of any

developing any policies for curbing down youth unemployment should be

given to that particular section of the young people without education, as

opposed to young people in general.

According to Csurke el al. (2009), unemployment is a source of stress, or a

stressor, to someone who's experiencing it. An individual may undergo

minimal to serious alteration of behavior which will significantly affect his

view in life and in facing problems. Eisenberg and Lazarsfeld (1938) argued

that the effects of unemployment towards the psychological behavior of an

unemployment to an individual and the optimism that he feels. Overtime, if

he fails to get himself employed, an individual may start feeling down and

decrease of self-belief in having a job which will lead to adaptation to the

present condition he is in where attitude and view in life are affected.

For most cases, unemployment may create conflicts and/or

misunderstandings at home (Popay, 1985); the intensity of this, however,

varies among countries depending on culture and value for family. Socially,

unemployment effects extend to every connection an individual has from

oneself, family, friends, and to the country (Furaker, 2010). One may engage

to drink liquors, smoking, and drugs because of unemployment; hence, an

increase in the number of people a country may consider to be deviant.

Unemployment also reduces a person's interaction with friends and other

future connections because of a significant decline in participating social

events, membership from organizations, and the frequency of going to public

places like malls. The potential mental consequences of unemployment are

very immense, which would lead to social ills imprinting self-destruction and

causing damages to the societies which will continue for a long time to

come.

In order to have a better approach in addressing its core issues and mitigate

down incidences, it is very necessary to understand consequences which

has stronger impact on the youth who are unemployed for longer or shorter

period of time. The related literature and studies aforementioned had

impact of unemployment in Barangay Tangaro, Catarman, Camiguin.

Based from the interview, the following conclusions were drawn:

Several employment barriers are being experienced by the unemployed

individual because of the different demands by the market as well as

personal situations where they get themselves in. Employment in rural

areas like the Municipality of Catarman particularly in Barangay Tangaro is

greatly affected because of some early parenthood resulting from unfinished

education at school and lack of job opportunity in the Province also lack of

interest to land a decent and permanent job. Fixed demands in the market

hinder applicants to be employed due to lack and/or mismatch of skills and

additional educational requirements.

Fluctuations in the market do not create enough jobs for the unemployed

individual. Financially, unemployment greatly affects every family who has

unemployed members. Generally, food security is met but satisfaction is

poor. An unemployed parent is more likely to send his child in a public

school where access to the enough supplies and school requirements are not

fully met. Providing of basic medicine for simple illnesses can be afforded

but hospitalization is difficult for the unemployed. Debts are rampant to

avail goods and services.

Unemployment does not significantly affect the relationship of the family

members but it develops vices overtime as more unemployed accumulate in

an area. Lastly, the younger unemployed individuals still have a strong faith

for employment compared to those who are unemployed for long periods of
time and unemployment creates uncertainty to the unemployed with regards

to future life and opportunities.

RECOMMENDATION

Based on the findings and conclusions, the researchers had the following

recommendations:

Reinitiating and strengthening the existing programs and putting them in

action: Skills development programs including youth counseling,

apprenticeships, and internships were some highlighted areas of

recommendations from the interviewees.

Easy access to basic services such as internet facilities, counseling, access

to latest information pertaining to the current job market, and initiate

aptitude test for the youth and for anybody that is willing to do so.

A partnership /collaboration between the governments, the public and the

community to work together, instead of leaving everything to the

government.

Lastly, by giving equal work and treatment regardless of their gender, race

and religion.
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Almaden el al. (2012). Basic principles of economics with applications in taxation,

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University Press

Appelbaum, L. (2013). Economic and psychological consequences of long-term

unemployment. Employment research20 (1): 4-6.

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Bureau of Labor Statistics (2016). Employment projections. Retrieved from:

http://www.bls.gov/emp/education_pays_handout.pdf

Commission on Higher Education (2015, April 1). "656, 284 join labor force this

year". The Philippine Star. Retrieved from:

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