Types of UnemPloYrnent

Cyclical LJnernPloYment
I
.Resultsfromtheupsanddownofbusinesscycleofthecountryl
.ltcancontrolledbyimplementingappropriateeconomicpoliciestoavoidtheoccurrenceofsuch
emPloYnrent irreg u larities
- ls "cYclical" because:
olfthelevelofcyclicalunemploy'mentrslow,itmeansthatthepeopledon'thaveenough
purchasrng power to consume the produced goods
oManufacturerstendtoselltheirgoods/productsatlowerprices
Gross National Product
- occurs because of the undesirable performance of the real
; tu u p'r r' u r c' m po n e n'is

1t'ffif *ii"t :ffi;,,'l fr:*f':;Jjr.

t' Government purchases of goods and service (G)
; ;'"
. Net exports (X-M)

Structural U nemPloYment

_ the requirernents in the labor market

Results from mismatch between the available skill and
- Various factors for the occurrence of structural unemployment:
o lntroduction of modern technologies
o ,,unskilled,' workers who have no knowledge about the technology (machines) are
compelledtoquittheirjobsandtendtolookforotherjobs

Frictional unemPioYment

Considered as the transitional type of unemployment

are entering or re-entering the work
- circumstance: (1) poor placement services, (2) people who
(3) individrrals who are searching for "1;reener pasiures"

t-echnological U rrenr PIoYment

accurate outputs
- Employees are replaced by machines that can display fast and
- Popular labor organization in the Philippines:
o Kilusang MaYo Uno (KMU)
o Alliance of Progressive Labor
o Trade Union Congress of the Philipplnes (TUCP) ii

i
Seasonal UnernPloYment
labor supply
- Refers to unemployment resulting from seascnal changes in the
-MayoccurbecauseoftheclimaticchangeandduringholidaySeaSonS

l-heories of EmPloYment

Theory X

- often saicJ to describe a traclitional view of directron and control

- States that:
o Average man dislikes work and will avoid it unless directly supervised
 directed to ensure that organizational aims
Employees nrust be forced, manipulated and
are met
Threat of rePrimarrd

Theory Y

- lmplies a more self-ain'ed workforce

- States that:
o Enrployees are determined' keen to accept bigger responsibility
c.Employeeswillworkintheclirectioncrforganizattonalpurposes

Theory Z

- for life, ever-increasing their fidelity to the company

Employees are assured of a position
-CautiousassessmentoccurSoveraphaseoftimeandtheaccountabilrtyforaccomplishmentof
board
breakdown is shared among workers ancl
tl-rer

Mostworkersdonotconr:entrateinoneskillarea,butworkseveraldifferenttasks
-someindustriesareoftenanxiousaboutall;rspectoftheiremployeeslives'onandoffthejob

1'he UnemPloYment Pool

quit job or find work
- People always:deci'Je, at any point' to
a part of the unemployed pool:
- Fouruu".oor'to be considered to be
oPersonmightbeaneWgr.aduateornewentrantintothelaborforce and may be constdered
o from his job in search for other employment
Person who resigned
as unemPloYed while searching
o Person maY be laid off from vYork
'Lay-off.-refertoasuspicionwithoutpaylastingformorethanTconsecutive
dayswhichisinitiatedbytheemployerwiihoutprejudicetotheworker
because the firm closes down
o worker may lose his/her job; either he/she is fired or

UnderemPloYed and UnPaid Workers

- Unpaid worker _
..a
person who performs voluntary work,, (Wordweb online)
as
o common in rural wherein these workers do not posses standard benefits/salary
compared to the employed individuals'
o Their services may be compensated by various forms/kinds
ol-hegovernmentstillconsidersunpaidwork,erasofficiallyel.lloved
v'rorkers whose skills are not suitable for the
Underemployed worker workers refer to employed
currentlon,orwhoseincomeisinsufficienttosupporthismaterialneeds
oHelshewouldnaturallysearchforanotherjobtogainadditionalincome

Government's Labor PolicY

Labor Code of the PhiliPPines

_ executive branches of the government to enact

The Constitution rnandates the legislative and
protect the labor interest of the workers
and imple,ment laws/decrees that will
- Declaration of basic PolicY'
promote
The State shall afford protection to labor'
fult employment, ensure equal work opportunities
 and regulate the
regardless of sex, race or creeds
employers'
reLtions between workers and
ihe rights of workers to self-
The State shall assure
security of
organizatrort, collective bargaining'
conditions of work
tenure, and just and humane unfair
whether the emproyer has committed
The code arso serves as a guiderine to cretermine
;';;""*" f :*;:ctice - a,v io atio n or th e co n st
t]ji: a n izatr o n
r

11':::111:: l il,it:":"]r-ors
oCollectlvebargainingagreement_containstermsandcondrtionswithregardtosalaries
andwagesofernployees,guidelineswithregardtolabordisputes,workingconditions
of the National Labor Relation
o The code expressly provides for tr'e estautiJnment
Comnrission 'th
wl regard to the conduct of
labor
of formulating rules and regulatio'ls
' ln-charge
internal rules of procedure
hearings and act on the labor
ot gu'"uu of LaboJ
o Provicles t'" ff'l-"'ttolishment fel:::t '"
intra-union conflicts
issires/dispuj". *r, may arise in rnter-union or
'lnter-unron-conflic'tsbetvvebntwoormorelabororganizations
a labor organization
' lntra-urrion - conflicts with
Labor force vs. Globalization
o whal't
po'cy in the internationar communitv
which sreatlv affects
ff:;|11$'!llno*'.
tne economY of the countrY in the international
, community members to engage
Encourages the internatior'ral
trade poor
between the rich and the
' t oniy widens the disparity
f

' Advantages of globalization

. Attracts foreign trade and
investment
. reputation will be positively known to the
Philippine economic
intet,tational ec;onomic arena
. PovertY reduction

PovertY
health care' education' clothing
lack of basic human needs, such as clean water' rrutrition'
Poverty is the
andshelter,becauseoftheinabilitytoaffordthem

Causes of PovertY

- llliteracY. production
- ;;;;;-tlof private ownership of the means of
- High population/population bcom
- Terrorism
- PhYsical and naturalfactors government
- Coiruption irregularities in the
- Lack ol econonric oPPortunitiesvariety r:f competition
- Lack of social integiation and
Effects of PovertY
 I

-r&d?' - Brings devastating effects not only in the psychological aspect of an rndividual but also brings
instability irr the socio-political structure of the society
- People rrray blame the government of their current economic status
- Political instability it may also harm the economy
- Socio-pctlitical instability may also lead into the mergence of the radical anti-poverty movements
- Undesirable effects of pove(y
o Sanitation problems
o Higlr crime rate, suicide rate
o High risk of political violence
o Poor housing projects
o Low lii:eracy rate
o Drug abuse
Characteristics of Poverty

- Absolute po,rerty
o General concept of poverty
o A fixed set of standard which is consistent over time
- *ulsfive poverty
o Deprivation of basic needs of an individual compared with some other population
- c> Socially-defined poverty
Urban Social Problems

- Cause of migration frorn rural to urban communities

o Movernent of people from rural to urban communities i

o A rural delusion whereirt urban areas are more develop than the rural areas
o There are Filipinos who are still rnoving from the province to the urban communities
- Efiects of uncontrollable movement of rural people to the over-populated urban communities:
o Air, water and noise poliution
o lnforrnal settlers
o Prostitution
o Psyclrological and mental illnesses
o Alcohcll and drug abuse
o Crime and juvenile delinquency
- Squatters/Slumcommunities:
o An outcome of the abrupt movement of rural people to urban communities
' Squatter areas have proliferated along river-banks, railway tracks, esteros and in the borders of
residential areas
- Characteristics,
o Physicai -'absence of basic needs such as electrical and potable water supply
o Social- people may be employed or unemployed
o [-egal .- "nori-legal" status
culture
: I5f,Ji:itlr"ory which is coined by oscar Lewis
o First used in 1959 in his book entitled, Five Families: Mexicar: Case Studies in the
Culture of Poverty"

Sociological Theories of Poverty

 ,tt"'

- Conflict Theotly
o Gqvelnment laws and policies - two of the socio-political institutrons which the
{ bourgeoisie class used to continue their abuse against the workers
o The existence of free-market economic policies is cnly intended to benefit tlte most
ffi
*fi, develoPed countries
tu; - Symbolic lnteraction Theory
64

;ffi o Studies society in symbols, things, pictures, representation and other tangible materials
Jt9
'I
o Poverty can be associated vyith laziness an<l irresponsibility
,

o Rich individuals can be attributecl to intellectuals, responsible, industrious

- Culture of PovertY Ther:rY
o Matriarchal fanrilies are usually attributed to a relative lack of participation to major socio-
political institutions
- Dependency TheorY
o poverty can rooted in the dependency of a particular country to the other country
o Econom;"t"Tl[il:1tJ,tti,':Jit".?
reverop,ing countries to be the major suppriers of raw
materials

ii"r:"rffi::1il:[lnii!:r"*i# iu;;i". :" ffi ;:::;,,,.,

- ' in the government
Evolutionary/Social DarwinismTheory
o lndividuals who have superior intelligence are the only one who can survive in the society
o l\lental excellence is inhrorn
o Zulueta and Liwag - postulated that sociai mobility in the Philippines is slowly developing
because of their impediment. Historical i.rnd Contemporary Foreign Colonizers
- Capitalist Theory
o Capitalism - major Perprelu3l.t of ecr.,nomic inequality and abuse
o lts har-mful effects are rnevitable es;recially to the masses
lnternational 14easures of Poverty

- Poverty Thresholds - World Bank

o Synonymous to PovertY ltne
o WB sets average poverty thresholds of $'1 per day for the developing world, $ 2 per day
in Latin America, $ 4 per day in Eastern Europe and the Commonwealth of lndependent
States and $ 14. 40 per day in developed states
- Minimurn calorie requirements -\/Vorld Health Organization
o Usecl minimum calories requirements in measuring the poverty level of every economic
region in the internatioltal community
- House lncomes
o A family is considered as a member of the underprivileged class if it has less than 50% of
the median househrrld income
o The lrlational Stati:;tic Coordinatron Board uses this kind of tools to estimate poverty level
in the Philippines
- l'{uman poverty irrdex - United Nations Development Program
o Deprivations o{: knowledge long and healthy life and decent living standards
Education, Sex and Family Suuctures and Poverty
 \\,'
' \\'

- Education
() One of tlre effective measures in order to rnsulate an individual against poverty
- Sex
o Feminization of poverty refers to a socio-economic phenomenon wherein women live
below the poverty threshold as compared to men
- Family structure
o Culture of Pove' tY theorY
o Female-headedfamilies(orbroken'families)

Government Anti-Poverty Programs and Policies

Millennium declaration
Medir"rm term development plan (MTDP)
Accelerated hunger mitigation plan
Kapit bisE laban sa.kahirapan (KALAHI)
Lingao para sa mahihirap program fund
Social reform agenda (SRA)