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Get Access Effects of Unemployment to the Philippine Economy Essay Sample As a result of the global economic crisis, which drastically cut our exports and slowed down our OFW overseas Filipino workers remittances, Philippine economic growth in GDP gross domestic product terms which was registered at 7.
Despite the slowing down of the domestic economy, however, Philippine unemployment rate remained at almost the same level as it was before the current crisis. These do not differ very much from what they were at 7. What helped the Philippines from not increasing its unemployment rate even with the slowing down of the Philippine economy that came with the global recession?
While our unemployment rate did not worsen, it could still not be denied, however, that our unemployment rate, which averaged at In the same eight years, and based on Bangko Sentral ng Pilipinas compiled data, the unemployment rate was 3.
In South Korea, it was 3. What makes the Philippine unemployment rates much higher compared with our neighbors?
To the first question above, I think that our having a very high unemployment, even before the coming of the global recession, is the answer. Meaning, that because our unemployment was already very high, there is nothing much that the global recession could do to make it much higher.
Consider that many of our people are still dependent on agriculture or on self-employment for their living, including being an unpaid worker in a family enterprise.
Going back to agriculture, becoming self-employed or working unpaid in family business is our usual response whenever we find that jobs in the formal or non-farm work sector are not easy to get.
One thing good about work in agriculture, self-employment, or working in family owned enterprise is that they are elastic. They expand and contract easily depending on the need of the workers for work even if their being employed there now does not contribute much to the increase in the total output.
This is why, in the rural areas, employment data would show a higheremployment rate compared to the urban areas. But when one looks into the underemployment data, the reverse is true?
To the second question, of why our unemployment rate is higher than our neighbors, I find one answer in our failure to attract more investments and resulting inability to grow as fast as our neighbors economically.
Based on a ADB report, Philippines: Critical Development Constraint, we only allocated less than 20 percent of our total expenditures in investments annually over a period of seven years from to while our neighbors had higher figures, ranging from 23 percent in Indonesia to 35 percent in Vietnam.
Lower investments, naturally means lower economic growth, the reason why we are left behind by our neighbors economically. Going back to our high unemployment rate, I just wondered how high it would actually be once we factored in the number of jobless Filipinos who opted to leave the country to find work abroad.
Even with the recession, and contrary to the expectation of many observers of the economy, both local and international, the number of reported jobless Filipinos going out is still increasing although not at the same rate as before.
My explanation is that firms in the receiving country favor our OFWs because of their willingness to do any kind of work even for the smallest pay. Why do we do that? Because the alternative is to do nothing and receive nothing here. But are there really no jobs available in the country?
Of course, there are, and the demand for workers here also grows every year as long as our economic growth remains positive.
The only trouble is that the number of our new entrants to the labor is quite large also every year because of our rapid population growth. When the number of new entrants to our labor force is bigger than the number of new jobs created, the result is the increase in the number of our unemployed or higherunemployment rate.
How Does unemployment affect our economy? Unemployment effects the economy in ways that most people do not visually see. If more people are unemployed, less people pay taxes or have money for spending.
Spending money boosts the economy through taxes which is why everything is taxed. The taxed money adds up when everyone shops.Causes and Effects of Unemployment Unemployment defined by the Encyclopedia Britannica is the condition of one who is capable of working, actively seeking work, but is unable to find any work.
In addition, to define a person as unemployed, the person must be an active member of the labor force in search of work. You could probably write a book about the adverse effects of unemployment in a capitalistic society. What drives the machine of capitalism? It is a demand for goods and services and a return on.
The causes and effects of unemployment effect everyone in one way or another, every action has a consequence, whether it be good or bad. Writing services Though our team does not provide custom essay writing services to students for ethical reasons, we will be .
Causes and Effects of Unemployment Essay Sample. Unemployment or joblessness is a state of life in which a person is missing a paid employment opportunity and is actively seeking work.
Effects of Unemployment to the Philippine Economy Essay Sample. As a result of the global economic crisis, which drastically cut our exports and slowed down our OFW (overseas Filipino workers) remittances, Philippine economic growth in GDP (gross domestic product) terms which was registered at percent in was brought lower to percent last year and to just about 1 percent in the.
Unemployment means being out of job or a situation where the individual is wiling to work but has none. This article brings and discusses the main issues/effects of the unemployment on our society and economy.