KARL CRISTIAN P.

SANCHEZ BSA 1-A

ACTIVITY 4: WHAT THEORY DESCRIBES THIS?

Analyze the illustration above. In the space below describe what is happening in
the illustration, explaining or list down possible causes and/or effects of the
phenomenon happening above. Lastly, choose a theory that best matches this
illustration and explain why.
ANSWER:
Upon looking at the illustration above, in my perspective, it talks about or it has
something to do with the terms employment or employability as well labor and labor
markets that are also related to economic welfare and social welfare because first-and-
foremost, the blue-colored places on the map represent countries with excess workers.
On the other hand, red-colored places represent countries who need immigrants. Given
that as a reason, I believe that there is Migration of the people that will happen among
some countries included in the map. Those countries with excess workers will deploy or
some of its citizens or group of people/workers will voluntarily migrate to other countries
who need immigrants for labor/employment purposes or to-seek for a job.
The term labor migration will now be included as well as labor shortage.
Countries with possibility for labor migration are represented by blue-colored countries,
while those with labor shortage are represented by red-colored countries. Map Color
Indications: the brighter or vibrant the color, the higher the numbers of vacancies
and excess workers: the lighter the color, the lower the numbers of vacancies
and excess workers.
If there is labor shortage on countries in Asia and there are excess workers from
countries on same region, there will be labor migration. According to scholars and
researchers, 2/3 of intra-Asian migrants remain in their own part of the region. Meaning,
South Asians migrate elsewhere in South Asia, East Asians stick to East Asia, and so
on. While 1/3 explore on regions of Asia, in which the country where they came from do
not belong to the region of their countries of destination.
For example, using the map as the basis, Thailand of South-East Asia
needs migrant English-major teachers from neighboring countries. Philippines of
same region have excess English-major teachers. Thailand then encounters labor
shortage, while Philippines have excess English-major Filipino teachers due to
no labor or job vacancies for the said position within the country. In this case,
there is a big possibility that excess English-major Filipino teachers will grab the
opportunity to work in Thailand to fill the vacancies – therefore there will be a
labor migration. Some of those migrant workers may deal with or take up
permanent residence under some reasons - Immigration.
Now, I can figure out and list all the possible causes why there are the existence
of the so-called labor migration and labor shortage. In addition to that, I can now be able
to list some possible effects – both positive and negative effects of the latter.
The following are the causes and effects of Labor Migration and Labor Shortage
to the concerned countries including their economies and their people or workers.
These causes and effects based mainly on what I have observed on Filipino migrant
workers or Overseas Filipino workers working in intra-Asian countries, on the
Philippines itself and the Philippine Economy as well as on other neighboring countries
and their economies.
 LABOR SHORTAGE
CAUSE/S EFFECT/S
1. Occur when employers POSITIVE
struggle to fill labor
vacancies
2. Insufficient labor force
applying for the jobs (Positive effects are not applicable or observed
3. Geographical regions because according to scholars, most employers said
4. Occupations with special that labor shortage negatively affects the economy
requirements (in terms of and the country as well workers)
skill or function)
5. Seasonal In nature
labors like retail
(Christmas and other
holidays) and agriculture
(harvest time) and the
likes NEGATIVE
6. Unattractive jobs 1. Lack of labor (especially skilled) can slow a
7. Social prestige of jobs company’s growth.
8. Fixed pay 2. Low business productivity
9. Economy is close to full 3. Impede company’s ability to compete
employment 4. Foregone production opportunities
10. Rich People in country of 5. Increase in hidden unemployment
destination are more, but 6. Quality of work can be affected
poor in migrants 7. Employers are forced to hire ill-skilled candidates
because of less workers who are skilled and right
for the job
8. Slow growth in turn, may lead to a company taking
shortcuts elsewhere in their operations to save
money and increase profits.
9. If the company hired ill-suited workers because of
skilled-labor shortage, it can increase the cost of
having to redo faulty workmanship or having to pay
for damages to third parties as the result of
negligence on behalf of a poorly trained or skilled
employee.
LABOR MIGRATION
CAUSE/S EFFECT/S
1. Some workers are forced POSITIVE
to work against their will 1. Migrant workers contribute to growth and
 due to no job vacancies development in their countries of destination
regarding their current 2. Countries of origin greatly benefit from their
profession remittances
2. Workers are deceived 3. The country of origin greatly benefit from the skills
about the nature of their acquired by workers during their migration
work in their home country experience.
3. They receive wages that 4. International cooperation
are less than what is 5. Benefits the human capital by lowering the
promised in their home extreme poverty levels
country 6. Expanding the income level of both the migrants
4. Uneven development is and their country of origin
the main reason of 7. Improving balance of payments and foreign
migration currency reserves of the country of origin
5. Lack of employment 8. Reducing the cost of money (rates)
opportunities 9. Increasing standard of living of those concerned
6. The desire of job seekers and their families
to increase income 10. Increase monetary flow
7. The desire of job seekers
to improve their standard NEGATIVE
of living 1. Implies complex challenges in terms of
8. The emergence of new governance
industries 2. Migrant workers might not be safe or they may be
9. The relocation of harmed due to lack of protection given by some
production facilities of a laws
given business to a new 3. Country of origin’s Highly skilled workforce is lost
area 4. Migrant workers carry out activities that
10. High salaries offered inconsistent with graduate studies, with the
overseas qualifications and skills acquired
5. The workers will no longer have professional
continuity, disappearing some of the skills needed
to practice the profession when they return to the
country.
6. Loss of investment in human capital through the
migration of highly skilled workers
7. Generation of labor shortage in some areas of the
country
8. The stagnation of the economy
9. The aging of the population
10. Decline in GDP due to loss of creativity and
decline of competitiveness of national economy of
home country, and etc.

Both the labor shortage and labor migration can be resolved if ever the latter are
affecting the countries, the workers as well as their economies in a negative way. Like
for example, in order to somehow avoid labor migration and shortage, if you are an
employer, try to offer higher salary to attract more applicants for the job to fill labor
vacancies (if labor shortage), and to avoid labor migration or migration of workers to
other countries who offer high salary or wages.

 What theory describes this?

ANSWER:
In my opinion, the theory that describes this is the THEORY OF LIBERALISM.
Why? Because as I have said earlier, this illustration have something to do with or it is
related to employability and employment that is also affected by labor markets and other
economic conditions.

Liberalism by definition is concerned with market-led extension of modernization

and this is how it sees the process of globalization. Meaning, globalization is determined
or influenced by markets or people (through their needs and wishes) In addition to that,
according to this theory globalization is the result of human desires. One of the so many
human desires is to have a stable job or at least to become employed that was
considered as a necessity for all working-age people nowadays.

Due to Labor Shortage in other industrialized countries like China and Thailand,
countries with many excess workers like our country - Philippines and the workers their
selves, were able to deal with Labor Migration. Migrant workers like the Overseas
Filipino workers who work abroad to grab the different job opportunities and fill the
vacancies in their country of destination were able to find jobs that suits their profession
or expertise or even different jobs which they think they are qualified.

For some or almost all migrant workers, working abroad can elevate their well-
being or welfare – most especially in terms of financial aspect since it helps in the
reduction of extreme poverty and it increases human capital or the immigrants. Given
that as a reason, there is satisfaction with their needs and desires in life. Hence, it is
also their right to elevate their economic status and social status.

One of the advantages of Labor Migration to countries like Philippines is an

increase in real income or the real GDP. Through the remittances of Filipinos working
abroad, GDP per capita and monetary flows were increased. As well as other economic
aspects concerning money, like reducing money cost (rates). If there is an increase in
real output and real incomes/real GDP therefore there is an increase in economic
welfare.
 In conclusion, the desire of the Filipinos - which is to deal with Labor Migration –
has contributed to the increase in Economic Welfare. For as long as Economic Welfare
is concerned, THEORY OF LIBERALISM best describes the illustration – because I
believe that Economic Welfare is a product of LIBERALISM.