Unemployment and

Underemployment
OBJECTIVES:

• You can become familiar with the distinction

between Unemployment and
Underemployment.
•To propose a remedy for the unemployment
issue.
• Becoming familiar with the Three Categories
of Unemployment.
 PRE TEST
 What thoughts do you have about
Unemployment and Underemployment
when you hear about them?
 Definitions of Unemployed and
Underemployed
Unemployed- applied in a literal sense to all persons
without work, it has come to have a more specific
meaning in contemporary discussion of social and
economic policy.

Underemployment- are those who are working but

express the desire for additional work, used to designate
the situation of those who are able to find employment
only for shorter than normal periods—part-time workers,
seasonal workers, or day or casual workers.
 Labor Force in the Philippines

•The labor force includes all persons working or

seeking em ployment.
•Chafee et. al. (1969)They state that the educational
levels and literacy rates of workers in the Philippines
are Among the highest in Asia, but technical, manual
and manager ial skills are poorly developed and in
short supply. The skilled labor force is concentrated
largely in the Manila area.
 Labor Force in the Philippines
•There is an over-abundance of college graduates in the fields
of educa tion, commerce, and the liberal arts. Medical
personnel, law yers and other professionals also exceed the
demand. Fewer than one college graduate in five is able to find
employment commensurate to his educational training.

•It is for the above reasons that the present educational

system is geared toward providing the skills and talents
needed by the economy.
 Labor Force

1987 1993

40.265 million 41.453 million

Increase of 2.95%
Total of Employed and Unemployed Person

d
p loye
m on
Une 79 milli
2.3

EMPLOYED
24.443
MILLION

Employed Unemployed
 Categories of Unemployment
1. Seasonal Unemployment- this type of unemployment is that
which occurs during certain periods resulting from reductions in
demands for labor attributable.
2. Technological Unemployment- is another type of unemployment
which is a consequence of labor- displacing inventions.
3. Cyclical Unemployment- this type of unemployment is a result of
recurring depressions.
 Causes of Unemployment
1. Change of season.
2. Technological unemployment.
3. Lack of adequate technical training and education.
4. Continual changes in a nation's pattern.
5. Unable or unwilling to perform satisfactorily in their
jobs
6. Lack of oppurtunities.
 Effects of Underemployment and
Unemployment
Both cause higher poverty levels. Without
adequate income, families don't buy as
much. That reduces consumer demand,
slowing business growth. As a result, the
nation's gross domestic product is lower,
as is job growth.
 Solution to the Problem of Unemployment and
Underemployment
Authorities agree that the problem of Unemployment should
be approached from the point of view of eliminating its causes
rather than that of ameliorating its effects.
•Control the rising population.
•Fight Discrimination.
•Better Education.
Post-test
1. Type of unemployment that occurs during certain periods
resulting from reductions in demand for labor attributable?
A. Seasonal Unemployment
B. Technological Unemployment
C. Cyclical Unemployment
D. Unemployment
2. Type of unemployment that result of reoccurring
depressions?
A. Seasonal Unemployment
B. Technological Unemployment
C. Cyclical Unemployment
D. Unemployment
3.Those who are working but express the desire for additional
work?
A. Unemployment
B. Underemployment

4. It is a literal sense to all persons without work?

A. Unemployment
B. Underemployment
5. Type of unemployment which is a consequence of labor- displacing
inventions?
A. Seasonal Unemployment
B. Technological Unemployment
C. Cyclical Unemployment
D. Unemployment
6. How many percent in Labor Force increase
from 1987 to 1993?

7. Give at least 1 solution of Unemployment and

Underemployment.
9-10. Give at least two Causes of
Unemployment.
THANKS