Scribd
Upload
7 views

Applied Economics Part 2

AE

Uploaded by

Sky Shine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views

Applied Economics Part 2

AE

Uploaded by

Sky Shine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Applied Economics

BASIC ECONOMIC PROBLEM IN THE PHILIPPINES

UNEMPLOYMENT
The unemployment rate in the Philippines declined to 4.5 percent in June 2023
from 6.0 percent in the same month the prior year, as the economy recovered further
from pandemic disruptions. The number of unemployed persons stood at 2.33 million,
down from 2.99 million in June 2022. Meanwhile, the number of employed was posted
at 48.84 million, up from 46.59 million previously. The services sector accounted for
the largest share of employment (58.2%), followed by agriculture (23.8%) and industry
(18.0%). The labor force participation rate climbed to 66.1 percent from 64.8 percent a
year ago. source: Philippine Statistics Authority

Unemployment refers to the condition in which an individual who is capable of


working, willing to work, and actively seeking work is unable to find suitable
employment opportunities. It is an important economic and social indicator that
reflects the health of a nation's labor market and the well-being of its workforce. Here
are some key points to understand about unemployment:

Major Causes of Unemployment

Cyclical Unemployment:
This type of unemployment occurs due to fluctuations in the business cycle.
During economic downturns or recessions, businesses may reduce their workforce,
leading to cyclical unemployment. It tends to be temporary and related to economic
conditions.

Structural Unemployment:
Structural unemployment results from a mismatch between the skills and
qualifications of job seekers and the requirements of available job openings. It can be
more persistent because it often requires retraining or relocating workers to match
available jobs.

Frictional Unemployment:
Frictional unemployment arises when individuals are temporarily between jobs
or transitioning to a new job. It is often a short-term and voluntary condition as
workers search for better employment opportunities.

Seasonal Unemployment:
Seasonal unemployment occurs due to predictable patterns related to the
seasons or specific industries. For example, agricultural workers may be unemployed
during the off-season, and retail workers may experience fluctuations in employment
around the holidays.
POVERTY
Poverty is a multifaceted and complex social issue characterized by a lack of
resources and opportunities necessary for a decent standard of living. It is a global
problem that affects individuals, families, and communities, and it has wide-ranging
economic, social, and political implications. It is a condition where people’s basic
needs for foods, clothing, and shelter are not being met.

Major Causes of Poverty

1. Corruption:
- Corruption in government institutions and public services can contribute
significantly to poverty. When public officials engage in corrupt practices such as
embezzlement, bribery, or misallocation of funds, resources that should be used
for public welfare and poverty alleviation are diverted for personal gain.
- Corruption can result in inefficient public services, inadequate infrastructure
development, and a lack of investment in social programs like education and
healthcare. This, in turn, can hinder economic growth and perpetuate poverty.

2. Education:
- Access to quality education is a critical factor in poverty reduction. A lack of
education or inadequate educational opportunities can trap individuals and
communities in a cycle of poverty.
- Without education and relevant skills, people may have limited access to job
opportunities and may be limited to low-paying, unskilled work. This can lead to
insufficient income and a higher likelihood of living in poverty.
- Additionally, education plays a role in promoting social mobility, empowering
individuals to improve their circumstances and break the cycle of poverty.

3. Natural and Geographical Characteristics:


- Natural and geographical factors can contribute to poverty in various ways. In
regions prone to natural disasters such as earthquakes, floods, or droughts,
people may lose their homes, livelihoods, and assets, pushing them into poverty.
- Geographical isolation can limit access to markets, employment opportunities,
and essential services. Remote rural areas may lack infrastructure, healthcare
facilities, and educational institutions, making it harder for residents to escape
poverty.
- In some cases, geographical factors can limit agricultural productivity, making it
difficult for communities reliant on agriculture to generate sufficient income.

4. Ineffective Governance & Government Policies:


- Ineffective governance and poorly designed government policies can exacerbate
poverty. When governments fail to implement policies that promote economic
growth, social inclusion, and poverty reduction, poverty rates can remain high.
- Inefficient tax systems, corruption, and misallocation of resources can prevent
the effective distribution of public funds to programs aimed at reducing poverty.
- Government policies that favor the wealthy or certain interest groups over the
marginalized can widen income and wealth inequality, further entrenching
poverty.

You might also like