Rising of Unemployment Rate
Unemployment is a very common cause of poverty in the Philippines since there are several Filipinos who are unemployed plus the fact that there are many companies that are affected of the global economic crisis. And the least thing that you can do about unemployment is to find a best way on generating money like you can accept laundry services, plumbing services, or electrical repair services if you are skilled enough to do the job. Then, you could start a certain profitable business like food, house or a small store that does not require you much capital so that you will not find it hard to save enough money from the services that you are offering.
Unemployment has remained high in the Philippines, at almost twice the level of neighboring countries, despite relatively fast employment growth in the past decade. Employment growth was not sufficient to reduce unemployment because of rapid population growth and increased labor force participation. This paper shows that Philippine employment growth and unemployment declines were positively correlated with real GDP growth and, to a lesser extent, negatively with the real minimum wage. The key policy implications are that higher economic growth and moderation of increases in the real minimum wage are required to reduce unemployment.
A. Research Statement:
The labor force is defined as the number of people employed plus the number unemployed but seeking work. The participation rate is the number of people in the labor force divided by the size of the adult civilian no institutional population or by the population of working age that is not institutionalized. The non labor force includes those who are not looking for work, those who are institutionalized such as in prisons or psychiatric wards, stay-at home spouses, kids, and those serving in the military. The unemployment level is defined as the labor force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labor force. The employment rate is defined as the number of people currently employed divided by the adult population or by the population of working age. In these statistics, self-employed people are counted as employed.
Variables like employment level, unemployment level, labor force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over duration of time. Changes in the labor force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements from the labor force. Changes in unemployment depend on: inflows made up of non-employed people starting to look for jobs and of employed people who lose their jobs and look for new ones; and outflows of people who find new employment and of people who stop looking for employment. As the economy sinks further and unemployment continues to grow, a social explosion is building up as working people find it increasingly impossible to make ends meet. Past Research
The economic crisis is hitting the Philippines and countries in the developing world with unemployment. Nevertheless, there are weak signs of recovery in agriculture. These are the findings from a study of the Asian Development Bank (ADB), which considers the industry sector most at risk.
According to the ADB in the second quarter of 2009 employment in the Philippines fell by 7%, while agriculture grew by 2.6%. This trend is also confirmed by the National Statistics Office - NSO which reported 2, 719 million unemployed in the month of October 2009. This is 191 thousand higher than the 2.525 million unemployed in October 2008. This figure also reflects the damage of typhoons Ketsana and Parma, which between September and October brought the capital, where the large majority of industrial establishments are based, to its...
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