by: Ivy Lontoc Capistrano

Unemployment and

Underemployment

- occurs when people are

without work and actively seeking

work.

Unemployment

- a person is out of job because of his own desire to not to work on the prescribe wages or salary

Involuntary

- a person is separated from remunerative work anddevoid of wages although he is capable of earnings his

wages.

Voluntary

Philippines January 20131/

 January 2012

 Population 15 years and over (in 000)2/ 63,682 62,683

Labor Force Participation Rate (%) 64.1 64.2

Employment Rate (%) 92.9 92.8

Unemployment Rate (%) 7.1 7.2

Underemployment Rate (%) 20.9 18.

Estimates for January 2013 are preliminary and may

change.  

The Philippines topped Indonesia, Malaysia,

Singapore, Thailand, China and South Korea in terms of the unemployment rate, the

BLES said.

The total number of unemployed persons in the country reached 2.9 million in January 2012

or 7.2% of the 40.3 million Filipinos in the labor force. This was lower than the 7.4% unemployment rate

recorded in the same period last year.

Bureau of Labor and Employment Statistics (BLES)

Causes of unemployment:

Rapid Population

Growth Economic

Inflation

Economic Recession

Changing Technology

Demand for highly

skilled labor

Global Competition

Illiteracy

Over 70% of total labour force is illiterate or educated below primary level

Agriculture – backward farming 70 % population depend on it

Effects in Individual:

Unemployment

increases

susceptibility to:

malnutrition,

illness,

mental stress,

and loss of self-

esteem, leading to

depression.

 As well as anxiety, it can cause depression, lack of confidence, and

huge amounts of stress. They will begin to lose social contacts, and good social

skills.

Effects in Individual:Unemployed individuals

are unable to earn money to meet financial

obligations. Failure to pay mortgage payments or to pay rent may lead

to homelessness through fo

reclosure or eviction.

Effects in Social :

During a long period of unemployment, workers

can lose their skills, causing a loss of human

capital. Being unemployed can also

reduce the life expectancy of workers

by about 7 years.

High

unemployment can

also cause social

problems such as

crime; if people

have less

disposable income

than before, it is

very likely that

crime levels within

the economy will

increase.

Types of UNEMPLOYMENT

SEASONAL UNEMPLOYMENT

- Seasonal unemployment

refers to a situation where a

number of persons are not able to find jobs during some months of

the year.

CYCLICAL UNEMPLOYMENT

-Because of business cycles, many firms reduce the demand for inputs, including labor in recessional

periods when production declines.

- Cyclical unemployment can be

zero in full expansions during a

business cycle.

TECHNICAL UNEMPLOYMENT

-Unemployment caused by

technological changes or new methods of

production in an industry or business.

FRICTIONAL UNEMPLOYMENT

-- This is a type of voluntary unemployment

that arises because of the time needed to

match job seekers with job openings. Just as friction always takes

place before the slider comes to its final

position on the surface, people need time to find

the best job, thus voluntarily rubbing back

and forth between choices and staying.

DISGUISED UNEMPLOYMENT

-- When more people are engaged in some

activity than the number of person

required for that, this is called disguised

unemployment. Disguised

unemployment exists where part of the

labor force is either left without work or is

working in a redundant manner

where worker productivity is

essentially zero.

-

Underemployment refers

to an employment situation

that is insufficient in some

important way for the

worker, relative to a

standard.

Under employment can also refer to:

1. "Overqualification" or "overeducation", or the employment of workers with high

education, skill levels, or experience in jobs that

do not require such abilities.

Under employment can also refer to:

2. "Involuntary part-time" work, where

workers who could (and would like to) be

working for a full work-week can only find

part-time work. 

Under employment can also refer to:

3. "Overstaffing" or "hidden unemployment" (also

called "labor hoarding"), the practice in

which businesses or entire economies employ workers who are not fully

occupied.

EDUCATION is not the answer in unemployment and underemployment

Education is the

solution?

The most important lesson I have learned is that education

just doesn't prepare you for what comes next. Your degree might

teach you the skills you need for a workplace or career field, but it

won't show you how to get there !

INTRODUCTION

Formal education is not always the best way to give people practical skills. Educational programmes are seldom an initiative of

governments, and are frequently based on generic recommendations, more than on the specific needs of the economy. The result is a continuous mismatch between education provided

and labour market requirements. 

THE RESULT IS THAT GLOBAL SCHOOL ENROLMENT RATES, ESPECIALLY AFTER PRIMARY SCHOOL, REMAIN VERY LOW. BUT THIS

IS BY NO MEANS THE ONLY PROBLEM. EDUCATION FOR ALL IS NOT NECESSARILY A SOLUTION IN ITSELF SO LONG AS THERE IS NO WAY OF

ASSURING THE QUALITY OF EDUCATION OFFERED. 

Wangari Maathai

A solution to this would be the development of vocational training programmes. They have been

identified as a useful tool to give young people technical skills that are immediately usable without having the

problems of school fees and related costs. 

According to the ILO: (International Labour Organization)

"The increase in the numbers of youth in secondary and tertiary education is a positive development; however, labour markets in many countries are presently unable to accommodate the expanding pools of skilled young graduates." 

Technical Vocational Training and Education is the provision of skills, knowledge, attitude and values needed at work. In contrast to general education,

learning in TVET is centred on applied, as opposed to academic; it is about practical, as opposed to theory;

and it is about skills, as opposed to simplicity. It is meant to prepare learners for careers based on manual and practical activities and relates to a

specific trade in which the learner participates, hence the term vocational, while technical means that the learner directly develops expertise in a particular

group of techniques.

I would give the same advice that I would give myself: be brave, be flexible and look

forward. Because once the door of education closes behind you there

is really no other direction in which to go.

CONCLUTION