Welcome

to
Learning Module 3
Employment
Module Learning Outcomes
After studying the module, you should be able to:
1. describe population survey by employment
status;
2. define who is unemployed;
3. describe underemployment;
4. enumerate causes of unemployment; and
5. enumerate ways to reduce unemployment.
 Employment Rate in the Philippines increased to
94.60 percent in the third quarter of 2018 from 94.50
percent in the second quarter of 2018. Employment Rate in
Philippines averaged 91.25 percent from 1991 until 2018,
reaching an all time high of 95.30 percent in the fourth
quarter of 2016 and a record low of 85.60 percent in the
second quarter of 1991.

Retrieved from
https://tradingeconomics.com/philippines/unemployment-rate
Who is unemployed?

Person of employment age

(generally 15 to 64 years) who does
not have a paying job but is
available for work and is actively
seeking a job.
 In the Philippines, the
unemployment rate measures the
number of people actively looking
for a job as a percentage of the
labor force.
 The unemployment rate in the
Philippines dropped to 5.4 percent in the
September quarter of 2018 from 5.6 percent a
year ago. Unemployment Rate in the
Philippines averaged 8.41 percent from 1994
until 2018, reaching an all time high of 13.90
percent in the first quarter of 2000 and a
record low of 4.70 percent in the fourth
quarter of 2016.
Retrieved from https://psa.gov.ph/content/employment-rate-january-2018-estimated-947-percent
 The unemployment rate in the
country steadied at 5.4 percent in
July 2019 despite the addition of
100,000 more Filipinos to the ranks
of those looking for jobs, the
Philippine Statistics Authority (PSA)
reported.
What is underemployment?
 Underemployment refers to an
employment situation that is insufficient in
some important way for the worker, relative to
a standard. (e.g. Holding a part-time job
despite desiring full-time)
 Underemployment is working at a job
that underutilized ones abilities. Like a
college graduate working at a fast food
place.

Retrieved from: http://3plusinternational.com/2016/06/the-new-face-of-

underemployment-how-the-gig-economy-is-changing-work/
Retrieved from https://www.slideshare.net/churp27/lesson-10-over-employment-unemployment-underemployment-
and-overtime
Retrieved from https://www.slideshare.net/churp27/lesson-10-over-employment-unemployment-underemployment-and-overtime
 Nearly 7 million Filipinos who
already have jobs are looking for more
work, says the Philippine Statistics
Authority, citing the results of the April
2018 Labor Force Survey
What are the causes of unemployment?
 First, the employers seek the
people who are most suitable for the job.
Qualifications and credentials of
employees are prioritized together with
the skills of the aspirants. Usually,
employees are under-skilled or under-
qualified for the jobs.
 Second, and closely related
cause of unemployment are with
actions of labor unions. Workers are
demanding wages greater than the
firms are willing to pay or can afford to
pay.
 A third reason would be because of
the improvement of our technology.
Companies strive for the automation of
processes, which have drastically
improved production at lesser labor costs.
Because of automation, companies
employ less number of people because
they depend more on machines and
robots to do the job. With this, there are
no more jobs available for the people.
 Oversupply of labor force and inability
to take on available jobs (structural
unemployment)

Undergraduates are still taking up

college courses that are popular but were
previously high in demand. After
graduation, these graduates possess skills
that are not high in demand in the job
market. As such, there is a skill mismatch.
Oversupply of graduates

The number of graduates have

been increasing over the years. Getting
a degree is all too common nowadays.
However, the labor force does not
require so many graduates.
What may be done?
1. There must be an improvement in the quality of
Education
Literacy rate has proved to be not an
indicator of employment, at least for our country.
This may be absurd because high literacy rate
suggests better jobs for people. But in our
country, literacy rate may be high, but this only
relate to the reading and writing skills of the
people, and not really based on comprehensive
and analytical skills.
2. Government should support microeconomic
enterprises

Microeconomic enterprises, or
those small and medium enterprises,
help alleviate poverty and
unemployment.
Retrieved from: http://slideplayer.com/slide/4820184/
 Small businesses may be
supported by creating programs, such
as providing loans, to the marginalized
but deserving people. Often, the poor
are willing to start business but the
main problem is the lack of capital.
Department of Trade and Industry (dti)

GO NEGOSYO FUNCTIONS AND SERVICES

Functions
 Business Registration

Facilitates business registration thru the Philippine Business

Registry (PBR) and Barangay Micro Business Enterprise (BMBE)
 Accepts and facilitates all registration applications of Micro,
Small, and Medium Enterprises (MSMEs);
 Coordinates with the respective local government units (LGUs)
and liaises with concerned government agencies to process the
duly accomplished forms submitted by the MSMEs;
 Integrates a unified business process system for MSMEs;
 Encourages government institutions that are related to the
business application process to help promulgate information
regarding the Negosyo Center.
3. Regulation of market competition

Competition in the market is

good. It is the key to have better goods
and services at the most reasonable
prices. But market competition should
also be regulated by the government.
 Imported products are a usual sight
in our market today. Because imported
products are preferred because of its
lower prices, our locally-produced goods
are not patronized. The influx of imported
goods in our market kills our local market.
With this, local companies close or lay-off
its employees which would then increase
the unemployment rate.
 For those who are employed,
what agencies of the government
protect the workers from unjust
practices of their employers?
 Philippine labor laws, known in the
Philippines as Labor Code of the Philippines,
were created to protect workers from
exploitation and wrongful terminations. These
labor laws are also meant to encourage fair
hiring practices, Philippine labor laws seek to
create a fair working environment which can
then benefit both employers and employees.
 The Labor Code of the Philippines
is enforced through a quasi-judicial
organization called the National Labor
Relations Commission (NLRC).
The NLRC works in tandem with
the Department of Labor and
Employment (DOLE) to resolve
employer/employee disputes and
labor code violations.
 The Philippines' Department of Labor
and Employment (Filipino: Kagawaran ng
Paggawa at Empleyo, commonly abbreviated
as DOLE) is the executive department of the
Philippine Government mandated to formulate
policies, implement programs and services,
and serve as the policy-coordinating arm of
the Executive Branch in the field of labor and
employment. It is tasked with the enforcement
of the provisions of the Labor Code.
 The next slide will give you the minimum
wage in various regions in the country.

 Which region has the highest and lowest minimum

wage in nonagricultural sector?

 Which region has the highest and lowest minimum

wage in agricultural sector
If you have some
concerns concerning
the module, please
bring them up with
your professor in the
classroom for
clarifications and
further discussions.
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