Why is there unemployment and underemployment in the Philippines?
Unemployment in the Philippines is attributed to reasons including overpopulation, oversupply of labour force on certain industries and the inability to take on available jobs.
What is underemployment in the Philippines?
Underemployed persons are employed persons who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours. They were estimated at 6.0 million in October 2008.
What are the current rate of unemployment and underemployment in the Philippines?
Table A-1. Results from the February 2022 Labor Force Survey (LFS)
| Philippines | February 2021F | January 2022P |
|---|---|---|
| Labor Force Participation Rate (%) | 63.5 | 60.5 |
| Employment Rate (%) | 91.2 | 93.6 |
| Underemployment Rate (%) | 18.2 | 14.9 |
| Unemployment Rate (%) | 8.8 | 6.4 |
What is the effects of underemployment and unemployment?
The effects of underemployment are similar to those of unemployment. Both cause higher poverty levels. Without adequate income, families don’t buy as much. That reduces consumer demand, slowing business growth.
Why is unemployment an issue?
The social costs of this mass unemployment range from income losses to severe social and psychological problems resulting from not having a job and feeling insecure about the future. Overall, it causes a massive social inefficiency.
Why is underemployment a problem in the Philippines?
Unemployment can result in debt and poverty, and the government has to take care of these people, hence welfare spending would also increase at the same time. In cases where unemployment is very high, there would be a budget deficit, due to a combination of the two, loss of tax revenue and increased welfare spending.
What is the issue of unemployment in the Philippines?
The Philippine Statistics Authority reported today that the country’s unemployment rate fell from 6.4 percent in February to 5.8 percent in March 2022. More Filipinos also joined the labor force amid increased mobility and the lower alert level.
What is the impact of unemployment in the Philippines?
How does unemployment affect the economy of the Philippines?
Why is unemployment a problem in our country?
Unemployed individuals not only lose income but also face challenges to their physical and mental health. There are societal costs of high unemployment. Governmental costs go beyond the payment of benefits to the loss of the production of workers, which reduces the gross domestic product (GDP).
What are the causes of underemployment?
Underemployment has been attributed to adverse economic conditions, such as a recession, which occurs when there is a decline in economic activity. Underemployment is also caused when the supply of workers is greater than the demand for workers, there are layoffs, or when there is a technological change.
How is unemployment affecting the Philippines?
How can we solve underemployment in the Philippines?
Possible solutions to Unemployment in the Philippines
- Reducing Occupational Immobility. Labour resources are usually occupationally immobile because it takes time for people to gain the sufficient skills that are necessary for working in a certain industry.
- Employment Subsidies.
- Sustained Economic Growth.
What is the difference between underemployment and unemployment?
Unemployment vs Underemployment Unemployment refers to the economic situation in which an individual who is actively searching for employment is unable to find work. Underemployment is a situation where there is a mismatch between the employment opportunities and the skills and education level of the employees.
Why unemployment is a problem in the Philippines?
What are the labor issues in the Philippines?
Unemployment and underemployment are the Philippines’ most important problems and the key indicators of the weaknesses of the economy. Today, around 4 million workers (about 12% of the labor force) are unemployed and another 5 million (around 17% of those employed) are underemployed.
What is the problem of underemployment?
Underemployment can cause poor mental health. The stress and anxiety are a result of not being able to make ends meet, which creates a sense of inadequacy. Relationships with a partner can also suffer as a result of underemployment. Underemployment can seriously affect an individual’s mental and emotional health.
What are the causes of unemployment in the Philippines?
The more probable cause of unemployment in the Philippines is the unavailability of jobs provided. With an estimated population growth rate of 1. 84%, the countrys population will be approximately 105 million in the near future which is ranked as 3th compared to the world (Central Intelligence Agency, 2013).
What is the unemployment rate in the Philippines under Aquino?
Under President Benigno Aquino, in office since 2010, unemployment has fallen. The latest figures show the rate at 6.4 per cent in the second quarter of this year, down from 7 per cent a year earlier.
What is the educational attainment of the unemployed in the Philippines?
Most of the unemployed in the Philippines by educational attainment: 21 . 7% were college graduates, 13. 6 percent were college undergraduates, and 32. 8 percent were high school graduates (National Statistics Office, 2013).
Are unpaid workers being held back in the Philippines?
Philippines holds rates amid economy woes. Philippines remittances under threat. Such unpaid workers are not the only ones feeling held back. In a government survey, 18 per cent of workers said they would like to work longer hours or get an extra job. Only 35 per cent of these worked 40 hours or more a week.