APPLIED ECONOMICS

MODULE 7

ASSIGNMENT: (Short Bond Paper)

Research on government programs and actions that address one of the following
issues:
1. Issues affecting OFWs
2. Unemployment
3. ”Brain drain”

Describe a specific issue related to your chosen topic, outline related problems
and issues, and discuss the government actions taken to address these. Make a report
detailing the results of your research.

UNEMPLOYMENT

ISSUES
Types of issues in unemployment can include underemployment, misemployment,
self-employment, seasonal employment, retraining, and unpaid mandatory
vacations. High rates of unemployment and underemployment create long-term social
and economic problems, compromising our social safety net and all levels of
government.

PROBLEM
Unemployment in the Philippines is attributed to reasons including overpopulation,
oversupply of labor force on certain industries and the inability to take on available jobs.
Unemployment has costs to a society that are more than just financial. Unemployed
individuals not only lose income but also face challenges to their physical and mental
health. 

GOVERNMENT ACTIONS TAKEN

The government recognizes the problem of unemployment, whether it is shown by
the official Labor Force Survey of the NSO, or by the SWS and some other surveys.
The DOLE is decisively helping address the problem by promoting and implementing
job creation facilitation programs, such as the delivery of correct, relevant, and updated
labor market information.
Through the Special Program for the Employment of Students (SPES), the DOLE
provides short-term employment to poor but deserving students and out-of-school
youth. With a budget of P140 million for 2012, a total of 136,529 students and OSY
have benefited from the SPES as of October 31.
The Community-Based Employment Program (CBEP), which the DOLE monitors, is
a short-term employment program for workers in distress and displaced by calamities
and natural disasters. As of October 31, a total of 977,791 workers have been employed
in various infrastructure and non-infrastructure projects of major national government
agencies.
SOLUTIONS TO UNEMPLOYMENT IN THE PHILIPPINES

Reducing Occupational Immobility

Reducing occupational immobility is one possible solution that can be applied to the
Philippines. There is an oversupply of workers and a good amount of graduates every
year who fall into unemployment. By enlisting them in retraining courses, they can gain
new skills that are necessary to garner them a place in the workforce.

Sustained Economic Growth

Having sustained economic growth is another way for the government to address the
problem of unemployment. When there is economic growth, employers will be more
willing and able to employ more workers. This helps to address the issue of
unemployment. However, this is a long term strategy that takes a lot of time to see
results.

Employment Subsidies

Subsidizing employers that employ unemployed workers can help address the problem
of unemployment in the Philippines. However, this method can place a strain on the
government budget, depending on how much subsidies the government provides

SUGGESTIONS TO SOLVE AND ADDRESS UNEMPLOYMENT PROBLEM:

(i) Change in industrial technique:

Production technique should suit the needs and means of the country. It is essential that
labor intensive technology should be encouraged in place of capital intensive
technology.

(ii) Change in education system:

Educational pattern should be completely changed. Students who have liking for higher
studies should be admitted in colleges and universities. Emphasis should be given on
vocational education. Qualified engineers should start their own small units.

(iii) Expansion of Employment exchanges:

More employment exchanges should be opened. Information regarding employment
opportunities should be given to people.

(iv) More assistance to self-employed people:

Most people in India are self-employed. They are engaged in agriculture, trade, cottage
and small scale industries etc. These persons should be helped financially, providing
raw materials and technical training.