Unemployment, Case Study

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HIGH UNEMPLOYMENT RATE: WHO’S TO BE BLAMED?

A case study

Presented to

The Faculty of the College of Management and Business Technology Nueva Ecija University of Science and Technology
Sumacab Campus, Cabanatuan City

In Partial Fulfillment of the Requirement for the Subject
Basic Economics with Agrarian Reform and Taxation
Economics 1

By:

Glenda L. Estipular
Joanne Abigail C. Ramones
Jennavy N. Dela Cruz
Irma Joy P. Castro
Mary Grace A. Arzanan
Jonnalyn L. Alberto

Introduction
The Philippines has one of the highest unemployment levels in Southeast Asia. Based on the recent study, the capital Manila and surrounding cities had the highest unemployment rate while the war-ravaged Autonomous Region in Muslim Mindanao had the lowest unemployment rate. Unemployment tends to be lower in rural areas, because the majority of population works on family farms or hired as farm hands of big landowners. Unemployment as explained in the dictionary of economics is “the state of an individual looking for a paying job but not having one”. Unemployment occurs when people face crisis in job opportunities due to the unpredictable nature of the economy.

Filipinos are having an economic recession. As have said by Father Edwin Corros "Workers will always be the victims in a recession”. We all know that the root of economic problem that we are facing now is the “unequal distribution of wealth”. This study focuses on high unemployment as the result of disparity. This study seeks to find out who are the responsible people behind this problem of high unemployment; what their responses.

Case Title
High unemployment rate: who’s to be blamed?
Statement of the Problem
1. How is unemployment in the Philippines maybe described?
2. What are the types of unemployment?
3. What are the causes of unemployment?
4. What are the effects of unemployment?
5. What are the strategies of the Philippine government to solve unemployment problem? Discussion
1. How is unemployment in the Philippines maybe described?
The economic recession in the United States of America had a vast effect to other countries monetary condition. In the Philippines based on Social Weather Station quarterly survey, the official estimate for unemployment in 2008 was 7.4 percent or 2.7 million—an increase of 0.1 percent from 2007. These figures, however, are a gross understatement. The government defines the unemployed as those who are simultaneously without work, looking for work and immediately available for work. Moreover, “working” is broadly defined to include unpaid work for family businesses (a small farm or a small variety store) and working for oneself (street vendors, jeepney drivers). If the 4.1 million unpaid workers in family businesses, and just half of the over 10 million “self-employed” were included, the jobless total would be more than 11 million people among those 15 years and older. According to National Statistics Office, in 2008 Manila and surrounding cities had the highest unemployment rate of 12.5 percent while the Autonomous Region in Muslim Mindanao had the lowest unemployment rate of 4 percent. Of the total unemployed, more than a third or 39 percent reached college level. One third was high school graduates. 2. What are the types of unemployment?

To analyze unemployment and why it happens, economist often split unemployment into different types. A. Demand-deficient or cyclical unemployment, it occurs when there is not enough demand to employ all those who want to work. It is a type that Keynesian economists focus on particularly, as they believe it happens when there is disequilibrium in the economy. If the economy slows down, then demand will begin to fall. When this happens firms will begin to lay workers off as they do not need to produce so much. Demand-deficient unemployment rises. B. Seasonal unemployment which is fairly self explanatory....
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