Causes and effects of Unemployment

A research proposal presented to the

Senior High School Department
Saint Joseph College
Maasin City

By:

Valeria L. Monghit

Regie Rosello

Date: March 15 2017

 Table of Contents

Title page:

Chapter : I Problem and its scope

Rational of the study

Statement of the problem

Significance

Scope and Delimitation

Chapter: II Review of Related Literature of Studies

Chapter: III Research Methodology

Research Design
Research Respondents
Research Environment/ Locale
Research Instruments
Data Gathering Procedure
Data Analysis Procedure
Research Questionnaire
Letter of Permission
Refferences

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Chapter I:

INTRODUCTION:

The study is about unemployment. On this case we can gather information

and knowledge about unemployment. The purpose on our study is to know, the cause
and effect of unemployment in the society. To have accurate information why few
people still unemployed. And to know their way of living on how they survive being
unemployed.

Unemployment is a social courage. It is wasteful and impoverishing and generates

discontent, frustration and resentment. Ultimately, if not checked and reversed. It can
lead to the disintegration or destruction of the society itself.
Topic: Unemployment

Title: The cause and effect of unemployment

General Problem:

The study intend to have impact information about unemployment among

the society.

Specific Problem:

What are the effects of unemployment towards the society?

What are the causes of unemployment?
What are the ways to figure out unemployment?

Objectives:

To be able to know the effects of unemployment towards the society.

To know the reasons of unemployment.
To be able to gather information about unemployment.

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Hypothesis:

Unemployment cause by the rapid growth of population. Every year there

are millions of graduate students, whose main target is to apply job that are suitable to
their courses. But the problem in our country is that, we cannot sustain and provide all
proper job that fits to their course especially to the fresh graduates. Because of the law
system of our economy. That is why many of the Filipinos are unemployed.

In some reasons, unemployment cause by the laziness of the people, to

have works. Because they always depends from the support of the government. They
dont think of the outcome that might happen to the society.

Significance:

The purpose on this study is to know the awareness of the cause and effect
of unemployment in the society.

Unemployed:
- They will be more aware about the effect of unemployment to the
society, family and also to their self.
Barangay Officials:
- They can gather information on how to help and solve unemployment.
Society:
- To be aware of cause and effect of unemployment to the
society.
Researcher
- We can gain information of the cause and effect of
unemployment. And also to have learnings on how to cope
this situation towards the society.
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Scope and delimitation:

In this study the instruments used are questionnaires. It ask

relevant information about the unemployment. What are the effects of
unemployment? Cause of unemployment? How to handle their situation?
What are the ways of solving this problem? That are some of the question
that may ask.

Or we can have an interview to the respondents. We will ask

them personally about unemployment. And take down important
information.

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Chapter II: Review of Related Literature

CAUSES AND EFFECTS OF UNEMPLOYMENT

There are many reasons for unemployment in the United States and around the world. Some
of these causes are created by the individual and others are out of their control. No matter what the
cause for unemployment, it has a devastating effect on the individual, family, and economy.
Unemployment defined by the Encyclopedia Britannica is the condition of one who is capable of
working, actively seeking work, but is unable to find any work. In addition, to define a person as
unemployed, the person must be an active member of the labor force in search of work.
(Encyclopedia Britannica, 2012) Unemployment can be caused by several different factors.
Depending on the reasons for unemployment, they are classified as such: frictional, structural, and
cyclical. There will always be a certain number of people that are frictionally or structurally
unemployed due to varying reasons in the economy. Frictional and structural unemployment are
usually specific to a person or small region, however, cyclical unemployment only happens when
an economy is in a downturn. It signifies a decrease in the gross domestic product or GDP.
Unemployment affects not only the unemployed but also society as a whole and the effects can be
monetary and/or social. Overcoming certain barriers to job creation can help reduce frictional and
structural unemployment. Cyclical unemployment requires government intervention. Using
Keynesian economics, government spending must increase to shift the demand curve to the right,
which causes employment to rise. Overall, any type of unemployment is an issue but there are
ways to reduce the unemployment rates and keep our economy at least close to full employment
thus reducing the unpleasant effects of unemployment. Types and Causes of Unemployment

How is unemployment affecting the world? The recession, the failing economy, and
the government losing money are things that cause unemployment. There is a strange
unwillingness by both liberal and conservative commentators whom assess blame for the loss of
well-paying American jobs. The causes are not only the recession and the collapse of the housing
market, but bad decisions by the government and businesses that need to be addressed. Since 2010,
the United States has lost millions of jobs due to outsourcing and in sourcing.
 First, a recession has created a significant decline in economic activity across the entire
country. A recession usually lasts longer than months, even years. In April, 2008, the United States
economy slowed and caused us to enter a recession. A recession is something that no one wants to
enter; it can affect a lot of peoples' lives. Many people lost their jobs, and prices on items went up.
People got laid off construction, manufacturing, and retail. I think that most of the people who
were laid off were from retail jobs. It was unfair to fire employees; the supervisors should have
cut the workers hours back just a little. When people became jobless, they were jobless for a long
period of time. Most people would find a job, but others could not. When we first went in a
recession, a lot of people were shocked while others were not surprised

First, to understand unemployment, we must understand the three different

categories in the labor force: employed, unemployed, and not in the labor force. Employed is a
person whom has held a job within the last week or held a job but out due to a strike or illness.
Unemployed is a person who has not worked in the previous week but has attempted to find work
in the last month. Not in the labor force is a person whom does not fall in the categories above.
This category includes non-working spouses, students, and people who have quit looking for work.
(Tim,2011)
Now that we know what the labor force consist of, we will analyze the three different
types of unemployment. The three types of unemployment are frictional, structural, and cyclical.
Frictional Unemployment
Frictional unemployment is the type of unemployment that happens in normal economic
conditions. Frictional unemployment is the normal search time when people are changing jobs,
when students graduate from college and begin their job search, or time between jobs for seasonal
employees. For example, a new graduate entering the workforce or a person changing jobs may
have difficulty getting information for jobs openings. On the other hand, the person may be
receiving unemployment benefits from the government and they may hold out on taking a job
where the pay from the job is less than their benefits. Seasonal unemployment happens when work
is available only during a certain time in the year. For example, a tobacco worker would be
frictionally unemployed after the tobacco season is over. Frictional unemployment generally
happens within a shorter time period than structural unemployment. (Tucker, 2008) Structural

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Structural unemployment is caused by structural changes in industries. Structural unemployment
happens when an employee does not have the skills that match the existing job openings. Three
causes of structural unemployment are occupational immobility, geographical immobility, and
technological changes. Occupational immobility is the difficulty for a person to learn a new skill
to enter a new industry. For example, a teacher may lose their job due to cuts in education
spending. If the nursing field were the only jobs available, they would have to retrain to become
a nurse. Geographical immobility is the difficulty for a person to relocate to new location to get a
job. Due to economic factors, such as taxes and regulations on a business...

Job loss has a devastating impact on families and children, especially when the search for
another job becomes prolonged and fruitless. Unfortunately, few public programs and coping
mechanisms are available. Unemployment is one of the many factors associated with a declining
economic condition within the country manifested by the recession, or the continuing decline of
economic output. It is in the authors intent to identify a number of causes and effects of how
unemployment impact families and spark discussion of ways of starting a trend that will inevitably
alleviate Job loss has both immediate and long-term economic effects. Not all families are affected
equally y the experience of job loss and unemployment. Several strands of research suggest that
black workers may be more severely affected by job loss than their white counter-parts. Although
an increasing unemployment rate will be discovered later, months after a recession is announced,
Many U.S. companies today as a result of the technological revolution have replaced human labor
with machineries, equipments, and computers. A large company that used to employ thousands of
employees to improve mass production may be cut down in to hundreds because of the speed.

Unemployment occurs when people face crisis in job opportunities due to the unpredictable
nature of the economy. It's not a problem that has recently hit the economy, rather it was largely
evident during the 16th century. Despite coming from a good educational background and being
eligible for jobs, people still remain unemployed.

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Chapter III: Research Methodology

Research Design:

The researcher using a Qualitative Research Method. It is more on descriptive opinions.

The researcher use a questionnaire. The purpose in using this, is to gather information from the
respondents which can be very relevant in our study.

Qualitative research method is very useful thus it will test the individual opinions of the
respondents which are intended for a research study.

Research Respondents:

The respondents of this research study are those people who are unemployed, living in
Brgy. Combado. The purpose of the researcher in conducting this study is to generate and gather
information about the unemployment. The researcher choose this respondents because they are fit
for this kind of study. By using the sampling technique, we picked 40 males and 40 females.
Therefore there are a total of 80 participants.

Address Respondents Total

Barangay Combado Maasin Male Female
City Southern Leyte 40 40 80
Research Environment:

The researcher choose Barangay Combado to conduct a survey about the

unemployment. Barangay Combado is located along the city. Where it has a total number of

5, 903 population and has a total number of 1,169 households. The reason of the researcher choose
Barangay Combado because there are many people who are unemployed living in this Barangay.

Research Instruments:

The researcher use an adopted questionnaire to produce necessary data collection.

The purpose of the questionnaire is to assess and identify information needed for the research study
which is about the unemployment.

The questionnaire provides statements that will ask the respondents opinion on
how would they react on our given questions about the causes and effects of unemployment.

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Data Gathering Procedure:

The data will be collected from the respondents. By using a questionnaire

given by the researcher. The responses of the respondents will sum up to the data collection. The
procedure that will be use is in the table below

Choose a location and

respondents

Permission letter

Conduct a survey by
giving a questionnaire
to the respondents

Collecting a data
And
Analysing the data

Formulating the
conclusion
And also the
recommendation

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Data Analysis Procedure:
The researcher based their data according to the information from the respondents
reaction and responses to their survey. The researcher analyse and understand the gathered
information. The data will be converted to percentage utilizing the formula.

P= F/n * 100
P= Perccentage
F= total number of the responses
N= no. of participants
100= constant

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Name:
Age:
Status:
Gender:
Educational Attainment:
Direction: Read and understand the question carefully. Then put check to the space provided.
Agree Disagree Strongly Strongly
agree disagree

1.Is undergraduate, one of the cause of

unemployment?

2. Does over population, is also the cause of

unemployment?

3. Does mismatch job is also the cause of

unemployment?

4. Do you think, that increase of

unemployment had led to poverty?

5. Do you think that if there is adequate

employment the poverty rate will decrease?

6. Do poverty is the effect of unemployment?

7. Does unemployment growth influence
unemployment standard area?

8. Is unemployment syndrome so rampant in

rural areas than the urban?

9. Does unemployment bring frustration and

disappointment to the unemployment?

10 Thus conducting a survey can figure out

unemployment?

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 Saint Joseph College
Maasin City Southern Leyte
Senior High School Department

Mr. Ernesto Galleon

Barangay Combado
Maasin City Southern Leyte
March 15 2017

Dear Mr. Galleon

Good Day,
We are the students from Saint Joseph College. We would like to ask your
permission, to conduct a survey here in Brngy. Combado about the unemployment. And use spare
time the residents with us.
Rest assured that we will not accuse any disturbance.
Hoping for your kind and consideration thank you.

Respectfully yours,
Valeria L. Monghit
Regie Rosello

Noted by:
Mrs. Lorelie Dorias

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REFERRENCES:
Jeanette Trammel (9/14/14) Causes and Effects of Unemployment ; Travis Epling Strayer
University
Topic: Unemployment, United States, Inflation // Published : October 7, 2013
Topic: Unemployment, Inflation, Keynesian economics / Published :
November 3, 2012
Michelle James (February 19, 2011) Cause and effect of unemployment on an individual
family

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Unemployment affects not just the person himself but also his/her family and in the long run
the society where he lives.
Unemployment brings with it despair, unhappiness and anguish. It forces people to live their
lives in a way they do not wish to The life expectancy is negatively affected.
Life expectancy is the ease by which people living in a time/place are able to satisfy their
needs/wants. Here are the main aspects:

1. Mental health: Mental health problems like: Law self-confidence, feeling unworthy,
depression and hopelessness. With the lost income and the frustration involved in it,
the recently unemployed may develop negative attitudes toward common things in
life and may feel that all sense of purpose is lost. Frequent emotions could be low
self-esteem, inadequateness and feeling dejected and hopeless.
2. Health diseases: The unemployment overall tension can increase dramatically
general health issues of individuals.
3. Tension at home: Quarrels and arguments at home front which may lead to tension
and increased numbers of divorces etc.
4. Political issues: Loss of trust in administration and the government which may lead
to political instability
5. Tension over taxes rise: Unemployment also brings up discontent and frustration
amongst the tax paying citizens. In order to meet the demands of the unemployment
fund the government many a times may have to increase the taxes thus giving way
to restlessness amongst the tax paying citizens.
6. Insecurity amongst employees: The prevailing unemployment and the plight of the
unemployed people and their families may create fear and insecurity even in the
currently employed people.
7. Crime and violence: Increase in the rate of crime.
8. Suicide cases: Increase in the rate of suicide attempts and actual suicides as well.
9. Social outing: Unemployment may bring a decrease in social outings and
interactions with other people, including friends.
10. Stigma: Unemployment brings with more than just no work. It also brings with it the
disgrace that the person has to bear. Nobody likes to be termed as unemployed.
11. Standard of leaving: In times of unemployment the competition for jobs and the
negotiation power of the individual decreases and thus also the living standard of
people with the salaries packages and income reduced.
12. Employment gaps: To further complicate the situation the longer the individual is
out of job the more difficult it becomes to find one. Employers find employment
gasps as a negative aspect. No one wants to hire a person who has been out of
work for some time even when theres no fault of the individual per say.
13. Lose of skills usage: The unemployed is not able to put his/her skills to use. And
in a situation where it goes on for too long the person may have to lose some of
his/her skills.
 Frictional unemployment is transitional unemployment due to people moving between jobs
e.g. new entrants to the labour market. There are always hundreds of thousands of job
vacancies in modern economies such as the UK, so a degree of frictional unemployment is both
unavoidable and (to an extent) desirable so that jab vacancies can be filled.

Structural Unemployment

Structural unemployment happens when there is a long-term decline in demand in an

industry leading to fewer jobs as demand for labour falls away.

Examples might include:

Jobs on a production line being replaced by robots e.g. motor manufacturing,

online banking and online retailing
Unemployment caused by foreign competition (or changes in comparative
advantage)

Structural unemployment exists where there is a mismatch between their skills and the
requirements of the new job opportunities. This problem is due to occupational and
geographical immobility of labour and requires investment to improve skills, give the
unemployed suitable and effective training and work experience and make them able to
move location if needed to take a new job.

Globalisation leads to changes in the patterns of trade between countries.

Britain has probably now lost forever a cost advantage in manufacturing goods
such as motor cars, household goods and audio-visual goods, UK manufacturing
industry has lost jobs as some production has shifted to lower-cost centres in
Eastern Europe and countries in Far East Asia.