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Factors that have contributed to the large number of underemployed workers

Economy. When the economy is not doing well potential growth is hindered thus
limiting the number of jobs that can be produced in the job market. One does not need
to become an expert in the field of economics and employment to understand why a
weak economy can lead to limited job opportunities in the market. In addition, the
economy also plays a role in determining how companies will be able to pay their
employees since the economy is a determinant of the performance of companies. As
good as it may sound, companies may pay salaries and wages that are generous, even
to simple workers. If ever a company chooses to pay its employees with salaries that
are above their means, it might lead to bankruptcy. There are no companies generous
or ignorant enough to dole out salaries and wages beyond the organizations means. In
the case of the Philippines though, the economy is doing well. According to Usui (2013),
the Philippines economy is continuing to grow but its citizens are suffering due to lack
the lack of job opportunity. From what Usui said, we can infer that the stature of the
economy may not always equate to jobs, but it still plays a part in determining how
much money can a company, pay its workers. Job creation also has struggled to keep
pace with an ever-expanding population. In three of the past five years, the number of
people entering the job market has been greater than the number of jobs created. The
conundrum highlights the difficulty of spreading the benefits of economic growth and
suggests they have yet to trickle down to more deprived areas.

Population. According to the National Statistics Office (NSO), as of the year 2011, there
are 94.85 million Filipinos in the Philippines. Try to imagine how a country that is
developing economically can fill the needs of its people, specifically employment. A
large number of people in a demographic area certainly need a large number of jobs.
Out of 94.85 million Filipinos, there are more than 7 million people who are of working
age underemployed. With that high number of underemployment, it means that there is
a strong competition for jobs in the market and the workplace. According to Abelgas
(2013), out of half a million college student that will graduate only 30-40 percent will get
to be employed, and only 5-10 percent will get a job that matches their course. With
those radical numbers, one would not be surprised anymore if a college student can rise
above the competition in the job market. Job competition may lead to a low salary for
the applicant who will get the job, because employers will have the assurances that
there will be applicants who are willing to work for a small salary because those
applicants will be compelled to choose the job offer that is right in front of them. That
may prove as a significant evidence of how close the competition for a job is nowadays
because of the large number of citizens in the Philippines.
Over qualification. Keep in mind that underemployment does not necessarily mean
jobless or unemployed; those are different. Underemployment is present when an

employee has higher standards than the job that he or she is currently employed to. It is
underemployment in the sense that the employees qualifications exceed the
requirements that is needed in an applicant for that role. A worker might also have a
position that is lower than what he is supposed to have with his college degree or job
experience. These situations are inevitable due to the low number of jobs available in
the market. It compels the workers to work in a position that they are overqualified for,
but it is a way of living nowadays. For employees, they would rather work in a job where
it is unnatural for them rather than stay at home and starve. It is a way of sacrifice; they
work not only because that they need to purchase their necessities but also to provide
for their loved ones. Overqualification can be a factor to underemployment, but it cannot
necessarily mean as underemployment itself through context because some chose to
be employed that way so that they can provide for their family as soon as they can,
especially in a country like the Philippines.
Underemployment may be high at present but one must not fret about this just yet.
As said earlier, underemployment does not necessarily mean jobless or unemployed;
it means that opportunities are still there waiting to be relished. Dedication and hard
work can lift the underemployed workers from their current position. The
underemployed workers must seize every opportunity given to them and they must also
rise to the challenge of their status as underemployed workers. Keep in mind that some
billionaires today were also underemployed or self-employed before, one of which was
Henry Sy. He was not rich when he was young. The fortunes he made were all because
of his hard work and dedication. He was just a vendor when he was young but that did
not stop him to strive and to work hard for his dreams. Let him be a model of how
dedication and hard work can lift a person to more comfortable life and better status.
Moreover, let us instill in our minds that underemployment is not something that we
should be ashamed off, but it should be challenge that we must conquer for the better
good of everyone, not only ourselves.
References:
Ranks of underemployed plus jobless Pinoys swell to 10.8M- NSO survey. (2013).
http://www.gmanetwork.com/news/story/299663/economy/business/ranks-ofunderemployed-plus-jobless-pinoys-swell-to-10-8m-nso-survey
Philippine economy strong but unemployment remains challenge: ADB. (2013).
http://www.philstar.com/headlines/2013/04/09/928803/philippine-economy-strongunemployment-remains-challenge-adb
Abelgas, V. (2013). The growing ranks of the unemployed.
http://manilastandardtoday.com/2013/03/20/the-growing-ranks-of-the-unemployed/

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