Unemployment means being out of job or a situation where the individual is willing to work but has none. It either means that they are over qualified for the given work or it is not suited for them. People are unemployed because of insufficient demand of work. Unemployment is a huge challenge facing Philippines. Since that this is one of the countries that have high unemployment rates, it slows the growth of the country. Parkin et al, states that “To be counted as unemployed, a person must be available to work…must want to work and have made specific efforts to find a job or taken steps to start a business” (Parkin et al, 2010:495) Our group wanted to study this topic so that we will see what the effect is. We want to widen our knowledge in terms of these things so that we can level ourselves to the people who know this. Our purpose of our research is to know the effects of unemployment in a community. We used a small compound in Magsaysay where we did surveys to see how many people are unemployed and what are their reasons why they are unemployed. In this small community, we can see how fast or how slow the growth of the economy. Obviously the people involved are the people looking for jobs, the youth called “tambays” and wives who are just staying in their houses. By conducting the survey, this will help us conclude what is the effect and how will we solve this problem. By maybe, creating own jobs or persevere in looking for work.