How Do Investment Affect The Business Cycle in The Country?: Philippines Vs Indonesia

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How do investment affect the business cycle in the country?

Investment is one of dozens that causes business cycle in a country. If investments in a certain
contry drops, many sectors will be affected by this declination of investments. Production of goods and
services also decreases when investments starts to drop or decrease. When investments are increasing,
business cycles are affected and it affects the economy also because a country experiences jobs,
production and sales growth because of expansion or recession of business cycle.

Discuss the current status of the country in regards to labor force, employment and
unemployment rate.

In july 2017, sixty percent of the population 15 years old and over are in the labor force. The
total population 15 years old and over was estimated to be 70.2 million wherein the number of persons
who were in the labor force was reported at 42.5 million. This placed the labor force participation rate
at 60 percent , which means tha 6 out oof 10 of the population aged 15 years and over were either
employed or unemployed.

Employment rate was recorded to be at 94.4 percent and is estimated that 40.2 million persons
are employed. In more than three in every five of the estimated 40.2 million employed persons in july
2017 were males. Employed females are reported to be at 37.5 percent of the total persons employed.

In july 2017, unemployment rate reached 5.6 percent. The numbered 2.4 million resulting to an
unemployment rate of 5.6 percent. Among the regions, ilocos region (8.2%), National Capital Region
(7.1%), and CALABARZON (7.0%) were the regions with the highest unemployment rates.

Philippines vs Indonesia

Philippines and Indonesia are Asia’s two rising economic stars. They are both rising up and is
having a very close battle. In terms of labor force, Philippines has a participation of 62.1 percent while
Indonesia has 69.02 percent of labor force in 2017. And in terms of unemployment rate, Philippines has
5.6 percent of unemployment rate while Indonesia has approximately 5.6 percent of labor force rate.
Philippines biggest problem is the corruption that is endless even how many years have come. It has
become the biggest problem in the Philippines because it affects the countries growth and the
possibility if the people in the Philippines to get out of poverty. Indonesia is one of the biggest country
and is also facing big problems but the biggest problem of Indonesia is the poverty. It is because of low-
income on households and if a person has low-income then it is expected that many might experience
poverty. Poverty causes children not to be proper educated because of financial problems. This two
countries are having a tight and close fight but has one goal to rise up and improve their economic state.

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