Unemployment Rate

Topics: Unemployment, Economics, Inflation Pages: 26 (7798 words) Published: February 27, 2013

Today, mostly Filipino people are experiencing unemployment crises because of lack of job opening in our society. Even those who are fresh graduates in college are hard to get job, mostly those graduated in college are jobless and they are vacant only in their house.

This is the reason why Philippines tackles unemployment rate in economic crisis. Once, there are job openings that need many options and requirements, so other people are not qualified of it and they may experience hard getting a job.

Also, because of unemployment crisis here in Philippines, mostly Filipino are forced to seek greener postures abroad so they need to leave their families to provide them a better life and other reason of it, other business is closing so the workers on that business will become unemployed.

Keynesian economics emphasizes the cyclical nature of unemployment and recommends unionization, minimum wage laws, taxes, and other regulations that they claim discourage the hiring interventions it claims will reduce unemployment during recessions. This theory focuses on recurrent supply shocks that suddenly reduce aggregate demand for goods and services and thus reduce demand for workers. Keynesian models recommend government interventions designed to increase demand for workers; these can include financial stimuli, publicly funded job creation, and expansionist monetary policies. Georgists, half a century before Keynes, also noted the cyclical nature but focused on the role of speculations in land which pushes up economic rent, because rent must be paid mostly from wages (yield of capital), economic activity cannot be sustained in the rent bubble, which finally burst resulting in recessions or depressions. Once the speculation is wrung out of system the cycle of land speculation begins again. Henry George therefore advocated the taxation and land values (Single tax) to stop land speculation and in order to eliminate taxation of labor and capital. George opposed land nationalization and Marx’s theories. Marxism focuses on the relations between the owners and the workers, whom, it claims, the owners pit against one another in a constant struggle for jobs and higher wages. The unemployment produced by this struggle is said to benefit the system by reducing wage costs for the owners. For Marxists the causes of and solutions to unemployment require abolishing capitalism and shifting to socialism and communism.

In addition to these three comprehensive theories of unemployment, there are few categorizations of unemployment that are used to more precisely model the effects of unemployment within the economic system. The main types of unemployment include Structural Unemployment which focuses on structural problems in the economy and inefficiencies inherent in labor markets including a mismatch between the supply and demand of laborers with necessary skill sets. Structural arguments emphasize causes and solutions related to disruptive technologies and globalization. Discussion of Frictional Unemployment focus on voluntary decisions to work based on each individual’s valuation of their own work and how that compares to current wage rates plus the time and effort required to find a job. Causes and solutions for frictional unemployment often address barriers to entry and wage rates. Behavioral Economists highlight individual bias in decision making and often involve problems and solutions concerning sticky wages and efficiency wages.


This research work entitled “Unemployment Rate: Tackles on Economic Crisis” is hereby submitted and accepted by Mr. Adelio L. Glodoviza with the grade ____.

Submitted this ___ day of March 2012 at Pagbilao Academy Inc. Pagbilao, Quezon.

Billy Joe L. Porte

Mr. Adelio L. Glodoviza


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