Professional Documents
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Content
I. Definition
II. Classification
III. Causes
IV. Effects
V. Unemployment Statistics
VI. Policies on Labor and Employment
What is unemployment?
An economic condition marked by the fact that
individuals actively seeking jobs remain
unhired.
Causes
Effects
At individual level
Mental stress
Loss of self esteem
Directly linked to poverty
At social level
Civil Unrest
Law and Order Problem
Loss of Tax Revenue for Government
At country level
higher payments from state and federal governments for unemployment benefits
Inflation
Decreased spending power
Recession
Unemployment Statistics
WORLD STATISTICS
Source: http://www.tradingeconomics.com/country-list/unemployment-rate
Philippines
Philippines
NCR - National Capital Region
CAR - Cordillera Administrative
Region
Region I - Ilocos
Region II - Cagayan Valley
Region III - Central Luzon
Region IVA - CALABARZON
Region IVB - MIMAROPA
Region V- Bicol
Region VI - Western Visayas
Region VII - Central Visayas
Region VIII - Eastern Visayas
Region IX - Zamboanga Peninsula
Region X - Northern Mindanao
Region XI - Davao
Region XII - SOCCSKSARGEN
Region XIII - Caraga
ARMM - Autonomous Region in
Muslim Mindanao
SOURCE: http://econdb.pids.gov.ph/tablelists/table/627
Education and Training. The aim is to give the long term unemployed new skills
which enable them to find jobs in developing industries, e.g. retrain unemployed steel
workers to have basic I.T. skills which helps them find work in service sector.
Reduce Power of trades unions. If unions are able to bargain for wages above the
market clearing level, they will cause real wage unemployment.
Employment Subsidies. Firms could be given tax breaks or subsidies for taking on
long term unemployed. This helps give them new confidence and on the job training.
Stricter Benefit requirements. Governments could take a more pro-active role in
making the unemployed accept a job or risk losing benefits. After a certain time
period the government could guarantee some kind of public sector job (e.g. cleaning
streets). This could significantly reduce unemployment.
Improved Geographical Mobility. Often unemployed is more concentrated in
certain regions. To overcome this geographical unemployment, the government could
give tax breaks to firms who set up in depressed areas. Alternatively, they can give
financial assistance to unemployed workers who move to areas with high
employment.