PREPARED BY: T.

JCo COYOS
SUBJECT: Contemporary Issues
SECTION: Grade 10 – Diokno an
Escoda
DATE: November 7 & 8, 2023

AP10 CONTEMPORARY ISSUES

Topic 8:
Labor issues in the philippines
is considered a by-product of market failure, with regard to
how the economy operates. With unemployment, the supply
of available labor does not meet the demand for productive
human capital (Oner 2014).

unemployment
Unemployment occurs when a person who is actively
searching for employment is unable to find work.
Unemployment is often used as a measure of the health of
the economy.

unemployment
Unemployment rate
It is the number of unemployed people divided by the
number of people in the labor force. Unemployment
depends on economic activity. The availability of labor in the
market is highly dependent on the production of goods and
the rendering of services that provide income.
 However, unemployment may still occur despite the rise of
business firms that contribute to the creation of employment
opportunities. This happens when the human resource fails to satisfy
the requirements of such employment opportunities.
Valentino Piana, an internationally acclaimed author and
consultant in economics, described unemployed, as people
who have the willingness to render work responsibilities
but are currently not able to do it.

unemployment
Categories of the Unemployed
1. without work
2. currently available for work
3. seeking work
4. registered individual in search of work
Unemployment is a key economic indicator because it signals the
ability or inability of workers to readily obtain gainful work to
contribute to the productive output of the economy. More
unemployed workers mean less total economic production will take
place than might have otherwise. And unlike idle capital,
unemployed workers still need to maintain at least subsistence
consumption during their period of unemployment. This means an
economy with high unemployment has lower output without a
proportional decline in the need for basic consumption. High,
persistent unemployment can signal serious distress in an economy
and even lead to social and political upheaval.
 Labor Force

Unemployment rate

Measures of Labor Force

Participation rate

unemployment Employment-
(United States Bureau of Labor Statistics 2017)
population ratio
 Labor Force
It is the sum of employed and unemployed
persons.
Bureau of Labor Statistics

Measures of
unemployment
(United States Bureau of Labor Statistics 2017)
 It is the percentage of the labor force
without a job. Unemployment rate
Investopedia

Measures of
unemployment
(United
(UnitedStates
StatesBureau
BureauofofLabor
LaborStatistics
Statistics2017)
2017)
 It is an estimate of an economy’s active
workforce.
Investopedia

Measures of Labor Force

Participation rate

unemployment
(United States Bureau of Labor Statistics 2017)
 This simply shows the number of people currently
employed as a share of the total working-age
population, which is the number of civilian, non-
institutionalized persons, ages 16 and over.
www.epi.org

Measures of
unemployment Employment-
(United States Bureau of Labor Statistics 2017)
population ratio
unemployment
…can be fragmented according to:
 Fictional

Structural Institutional
Business Cycle

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
 Unemployment can be structural when the
economy is confronted with the inefficiencies of
supply and demand. Structural unemployment
Structural comes about through technological change in the
structure of the economy in which labor markets
operate.

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
 Unemployment is a product of a business’s cumulative inability to
provide productive activities to people who are willing and able to
work. Cyclical unemployment is the variation in the number of
unemployed workers over the course of economic upturns and
downturns, such as those related to changes in oil prices.
Business Cycle

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
Institutional unemployment is
unemployment that results from long-
term or permanent institutional factors Institutional
and incentives in the economy.

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
 Frictional
Unemployment becomes frictional when seasonal labor
opportunities occur at a given time. Frictional
unemployment occurs as a result of people voluntarily
changing jobs within an economy.

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
When an individual
Unemployment chooses
is caused not toofwork
by factors even if an opportunity
underdevelopment is
that include
present and he
educational or she can dispense
background, the responsibilities,
the absence then it the
of required training, becomes
non-
voluntary of
adaption unemployment.
technology, and the inability of an individual to perform a
certain task due to social and cultural limitations. Factors of
Voluntary
Underdevelopment

Types of unemployment
There can be several traditional forms of unemployment
according to Piana (2011) and Burtless (2014). The following
are the four main types of unemployment in an economy.
 PREPARED BY: T. JCo COYOS
SUBJECT: Contemporary Issues
SECTION: Grade 10 – Diokno
and Escoda
DATE: November 10, 13, & 14,
2023
AP10 CONTEMPORARY ISSUES

Topic 8:
Labor issues in the philippines
CONDITIONS OF THE
 While it has been
observed that the
Philippines is
gradually
integrating into a
global economy,
globalization
affects the local
economy by
altering labor
policies and
structures.
 1. There are MNCs that
invest in jobs in countries
where the required skills
and competencies are not
readily available.

Education & Skills Development

INVESTMENTS
INTERNATIONAL LABOUR
ORGANIZATION
Required skills and competencies
 2. Companies invest in
countries where there are
cheap labor markets,
which they can easily
abuse.

Government Labor Policies

ALIGNED
INTERNATIONAL LABOUR
ORGANIZATION
Basic Human Rights
 Globalization hampers
the growth of local
industry, especially in
agriculture and in micro-
, small-, and medium
enterprises (MSMEs).
IN THE

Ex. The heavy importation of

food (such as rice, pork, and
fish) affects the agricultural
sector in the country.
Farmers, hog raisers, and
fisherfolk are heavily
affected as cheaper
products come In the
country to supply the
growing demands of the
market.
Photo from: BusinessWorld Online
Since the local agricultural
sector cannot compete with
cheaper prices of imported
raw food, it is forced to
scale down production,
which may lead to heavy
losses and eventually result
in sector players leaving. Photo from: BusinessWorld Online
 26.3%
2020

22%
Many laborers In this sector
are leaving and have
decided to look for
alternatives. It is also for this
reason many find faring in 2021
the Philippines a losing
cause.
Photo from: CCFAS and CGIAR
 26.3%
2020

22%
The Philippines Statistics
Authority (PSA), in its report
of recent distribution or the
employed persons’s by
industry in 2021, reported a 2021
decline of labor statistics in
the agricultural sector.
Photo from: CCFAS and CGIAR
 For years, numerous changes
and advancements,
particularly in technology,
have aided the global
manufacturing industry in
moving work.

IN THE INDUSTRIAL SECTOR

With upgrades and
improvements occurring
yearly, the following are
some issues and challenges
currently confronting the
industrial concern.
1. Shortage of Skilled
Labors
2. Automation in the
Workplace
3. Cybersecurity
 It is important that
companies establish
robust internal
training programs
and partner with
1. Shortage of Skilled colleges and other
Labors educational
2. Automation in the institutions to
Workplace provide entry-level
3. Cybersecurity workers with
appropriate
manufacturing
education.
 Philippines’
ELECTRONIC
INDUSTRY
- The Philippines
electronics industry
1. Shortage of Skilled
has been dynamic
Labors
since the mid-1970s
2. Automation in the
when companies
Workplace
sought to relocate
3. Cybersecurity
their operations in
response to rising
manufacturing costs.
 MANUFACTURING

- On a more positive
note, manufacturing
1. Shortage of Skilled
has advanced
Labors
sufficiently that the
2. Automation in the
shortage of skilled
Workplace
can be addressed
3. Cybersecurity
through automated
procedures and
even robots.
 TECHNOLOGICAL
ADVANCEMENT
Increase their
efficiency and
hasten production
1. Shortage of Skilled time
Labors
2. Automation in the However, high-tech
Workplace machinery is costly
3. Cybersecurity and may be out of
reach for many
businesses.
 TECHNOLOGICAL
ADVANCEMENT
At the same time,
replacing human
labor with machines
1. Shortage of Skilled raises ethical and
Labors maintenance
2. Automation in the concerns
Workplace
3. Cybersecurity
 TECHNOLOGICAL
ADVANCEMENT
Utilizing out-of-date
technology as a
result of rapid
1. Shortage of Skilled technological
Labors advancements is
2. Automation in the also a concern.
Workplace
3. Cybersecurity
 CYBERSECURITY

It is the practice or
strategy of
protecting systems
1. Shortage of Skilled and networks from
Labors cyberattacks.
2. Automation in the
Workplace
3. Cybersecurity
 CYBERSECURITY
Cyberattacks or
online assaults on
computers or
1. Shortage of Skilled networks with the
Labors intent to do damage
2. Automation in the or benefit financially
Workplace from the said
3. Cybersecurity attacks.

Ex. Date Breach

 CYBERSECURITY
Ex. Date Breach

In which cyber
1. Shortage of Skilled criminals access or
Labors steal sensitive
2. Automation in the information, can
Workplace damage a brand’s
3. Cybersecurity reputation and put
it in trouble with the
National Privacy
Commission.
 CYBERSECURITY
Ex. Ransomware

This can halt an

1. Shortage of Skilled organization’s
Labors business operations
2. Automation in the by rendering its
Workplace data useless – unless
3. Cybersecurity a ransom is paid or
any similar
agreement is
reached.
 The effects of globalization
can be felt in different ways
by different types of working
Filipinos –
1. Filipino workers (OFWs)
2. Call Center Agents

IN THE service SECTOR

3. BPO Employees
4. Contractual Staff

enforce flexible policies and

just regulations
 58.1%
S
E
R
V
IN THE LABOR FORCE
I
C AGRICULTURAL SECTOR

22%
E

S
E
C
INDUSTRIAL SECTOR

19.9%
T
O
R
2021
JULY
 3.1% 2020
2021

3.4%
Tourism sector has grown
slowly in comparison to
other countries such as
Singapore, Indonesia, and
Thailand. Accommodation and food service that
cater to the tourism industry

2021
 Over the years

OFWS
Have shifted from low-
Export services, including wage service jobs to
those provided by our professional careers
OFWs, contribute that require a higher
significantly to the economy. level of education.

REMITTANCES
 Consumer spending and
employment are increased
by the growing popularity

BPO,
of

Export services, including

those provided by our which is another
OFWs, contribute revenue-generating
significantly to the economy. mechanism in the
country
REMITTANCES
For a long time, the
Philippines lagged
behind other Asian
countries in terms of
economic and social
development, but with
aggressive economic
policies and programs,
such as the Build, Build,
Build program of the
Duterte administration, we
are on the verge of
sustainability and
progress.
UNEMPLOYMENT
- It is the state of being
unemployed.

UNEMPLOYMENT VS.
UNDEREMPLOYMENT

UNDEREMPLOYED
- It occurs when highly
skilled workers are
employed in low-wage
or low-skill jobs.
According to the PSA,
LABOR FORCE

76 m EMPLOYED

47.87m
UNEMPLOYMENT

2.68m 7m
UNDEREMPLOYMENT
According to the PSA (August, 2022),
EACH YEAR

1m OFWS
DEPART FROM THE COUNTRY.

1970S
The government has allowed labor migration
due to the combination of a lack of
opportunity and decent employment in the
country and the lucrative offers and higher
quality of living in other countries.
CONTRACTUALIZATION
- “endo”
- This is where employees
are stuck in fixed-term
positions with no
benefits.
- It is the business
practice of hiring
employees on a fixed-
term contract.
- Usually, the contract
lasts six months.
CONTRACTUALIZATION
- “endo”
- Contractual employees
are either renewed for
another fixed-term
contract or let go
entirely.
 CONTRACTUALIZATION

Abuse of the system

Executive Order (EO) No. 51,
s. 2018 is the step that
previous administration
implemented to stop this
practice but did not specify
sanctions on violators and
has largely failed to end the
practice.
SUBCONTRACTING
- It is an employment
arrangement in which a
business (principal)
contracts with an
agency or an
individual
subcontractor to
perform a job or
service within a
specified time frame.
SUBCONTRACTING
- Labor-only contracting
The contractor
employs workers who are
familiar with the nature of
the work or service and
supplies them to the
principal.
prohibited by law
• Low Salary
• Unsafe Working
Environments
• Employee-employer
Relationships
• Work Discrimination
• Low Salary
The wage rate in the
Philippines is significantly
lower than those of other
countries (see table 2.4 on
page 126).
Although the Philippines
has one of the highest
minimum wage rates among
ASEAN nations, many workers
believe it cannot sustain the
high standard of living in the
country and the yearly
• Low Salary
Kindly read the past and
the present section on page
127.
Non-agricultural sector

Php570.00
Agricultural sector

Php533.00
…for the NCR workers.
• Unsafe Working
Environment
Some workers still endure
poor working conditions.
For example, they have to
deal with:
• Inadequate physical
facilities.
• Insufficient leave benefits
• Unstable employment
status
• Occupational safety
measures, and
• Unreasonable work
schedules.
Photo from: ILO
• Unsafe Working
Environment
They are sometimes
exposed in hazardous
chemicals as well and are
given limited to no
opportunities for personal
and professional growth.
• Employee-Employer
Relationship
Workplace oppression is
directly linked to poor
working conditions because
it is committed by employers
who regard workers as merely
material instruments of
capital accumulation rather
than as human beings.
• Employee-Employer
Relationship
• Failing to pay wages
and compensation
• Sexual harassment
• Physical abuse
• Illegal dismissals
• Work Discrimination
• gender or sexuality
• age
• religious beliefs
• race
• An example would be the
termination case of a
female bank employee who
married her husband who
worked in the same bank
branch.
• The Supreme Court
deemed the termination
illegal and discriminatory,
especially given how the
husband was retained and
only the wife was
terminated. Photo from: Rappler
Government programs and
policies for the labor sector
• Maternity Leave Act (RA 1161) and Expanded Maternity
Leave Act (RA 7332)
• Migrant Workers and Overseas Filipino Act of 1995 (RA
8042)
• Workmen’s Compensation Act (RA 772)
• Anti-Child Labor Law (RA 1131)
• Termination Pay (RA 1052)
• Paternity Leave (RA 8187)
• Wage Rationalization Act (RA 6727)
• Anti-Sexual Harassment Act of 1995 (RA 7877)
Covid-19 response in the labor
sector

Photo from: Rappler

Department of labor and • COVID-19 Adjustment
employment Measures Program
(CAMP)
This department’s functions • Tulong Panghanapbuhay
and responsibilities include sa Ating
regulating the labor Disadvantage/Displaced
market, facilitating the Workers (TUPAD)
resolution of labor • DOLE Integrated
disputes, and providing Livelihood Program
social protection to (DILP)/KABUHAYAN
Program
workers.
Photo from: Rappler
Department of labor and • COVID-19 Adjustment
employment Measures Program
(CAMP)
- Php 5,000 (one-time
lump sum financial
assistance) to be given
those workers affected by
COVID-19, regardless of
employment status.

Photo from: Rappler

Department of labor and • Tulong Panghanapbuhay
employment sa Ating
Disadvantaged/Displace
d Workers (TUPAD)
- It provides emergency
employment for displaced
workers, the underemployed,
and seasonal workers.
- They can work for a
min. of 10 to max. of 30
days.

Photo from: Rappler

Department of labor and • DOLE Integrated
employment Livelihood Program (DILP)
- Kabuhayan Program
- provided training on
how to plan, set up, start,
and operate their livelihood
undertakings.
- support services
necessary in setting up the
business
- technical and
Photo from: Rappler
business advisory
Department of labor and • COVID-19 Adjustment
employment Measures Program
(CAMP)
• Trabaho, Negosyom • Tulong Panghanapbuhay
Kabuhayan (TNK) sa Ating
• Balik-Trabaho Online Disadvantage/Displaced
Job Fair Workers (TUPAD)
• Special Program of the • DOLE Integrated
Employment of Livelihood Program
Students (SPES) (DILP)/KABUHAYAN
• Government intership Program
Program (GIP) Photo from: Rappler