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					Research Topic: “The Unemployment Rate is Increasing in a State”

Research Questions:

1.) What are the causes of unemployment?

2.) What are the effects of unemployment?

3.) What are some government and non-government programs that
      address the issue of unemployment?


I. Background of the Study:

"Unemployed resources would not exist if the economy were operating

       Nobody likes unemployment. Certainly, extended unemployment
can be a very painful experience. Job search, however, performs an
important labor market function: it leads to
improvement in the match between worker skills and the requirements of
       In a world of imperfect information, prospective employees will
engage in a job search in order to acquire information about
employment opportunities and job requirements. In essence, job
searchers are "shopping"- they are searching for information about the job
opportunity that best fits their skills, earning capabilities, and preferences.
Similarly, employers shop when they are seeking labor services. They, too,
acquire information about available workers that will help those select
employees whose skills and preferences match the demands of the job.
       This shopping result in some unemployment, but it also provides
both employees and employers with information that will help them make
better choices. If the resources of an economy are going to be used
effectively, the skills of workers must be matched with the jobs of
employers. Waste will result if, for example a person with high-level
computer skills ends up working as a janitor while someone else with
minimal computer skills is employed as a computer programmer. Job
search improves the match between the skills and preferences of
employees and the demands of
various jobs. As workers search to find jobs for which their skills are well
suited, they achieve
higher wage rates and the economy is able to generate a larger output.
       Perhaps thinking about the housing market, will help the reader
better understand why search time can be both beneficial and
productive? As with the employment, market characterizes by both
imperfect information and dynamic change. New housing structures are
brought into the market: older structures depreciate and wear out.
Families move from one community to another. In this dynamic world, it
makes sense for renters from time to time to shop among the available
accommodations, seeking the house quality, price, and location that best
fit their preferences and budgets. Similarly, property owners search
among renters, seeking to rent their accommodations to those who value
them most highly. Housing vacancies, a type of "frictional unemployment,"
occur. Is this indicative of inefficiency? No. it is the result of imperfect
information and the search for a more efficient match on the part of both
property owners and renters.
       Of course, some types of unemployment, particularly cyclical
unemployment, are indicative of inefficiency. However, this is not the case
with frictional unemployment. The job searching (as well as the frictional
unemployment that accompanies it) helps both job seekers and
employers make better choices, and it leads to a more efficient match of
applicants with job openings than would otherwise be possible. It is
perfectly consistent with economic efficiency. (Gwartney, 1994)

             "For many centuries and still today, unemployment has had a
close relation
          with the control and ownership of the land."

       The research about unemployment is numerous, some of the books
are publish on the United States of America, and its content summarizes
the problem of unemployment of the States itself. In the Philippines, it is not
clear because most of the data of economics is turned to the
Department of Labor and Employment (DoLE), National Labor relations
Commission (NLRC), Philippine Overseas Employment Administration
(POEA), and other government body that holds about the economic
situation of the Philippines and mostly of the researchers are the

     Headlines of the newspaper, many workers displaced from their job
because of global financial crisis. It is interesting to reflect on the potential
impact of the Internet on the job search process. Increasingly, both
employers and employees are using Internet sites as a means of
communicating with each other. Employers provide information about job
openings in various skills and occupational categories, while employees
supply the information about their education, skills and experience. This
electronic job search process reduces information costs and makes it
possible for both employers and employees to consider quickly a wide
range of alternatives. As this method of employment search becomes
more widespread, it will tend to shorten the job search process and
improve the match between employee qualifications and the skills
required for high-productivity job
       On the other hand, a change that makes it cheaper to reject
available opportunities and continue searching will encourage
employees to lengthen their period of search. For example, an increase in
unemployment benefits would make it less costly to continue looking for a
preferred job. As a result, job seekers will expand the length of their search
time and the unemployment rate will
       What could have been a good start to cushion the impact of mass
layoffs became a bad precedent when the government introduced an
employment program that promotes the exploitation of cheap
contractual labor.
       Of course, President Arroyo will say that there are no funds to pay
untrained nurses and tree planters' higher wages and benefits. However,
there are hundreds of billions of pesos automatically appropriated for
debt payments, which amount to 70 percent of the national budget.
(Interest payments alone make 30 percent of the budget.) Such a huge
amount can be better used to finance a reformed employment program.
Not paying the debt, legitimate or otherwise, that we owe the bank
creditors is a light punishment for their high crime of triggering the global
economic crisis. (Philippine Daily Inquirer, 2009)

Many are rich but more than 50% of the population around the world is
poor. However, many of the poor are persevering to graduate on high
school or college, but because of competition, many are underemployed
and they constitute to the list of unemployed in the country, particularly in
the Philippines. Therefore being less fortunate has no future especially
nowadays because of global
financial crisis.

      This paper focuses on the identifying of the problems that are
related to unemployment. Determine the outcome of ranging
unemployment in ones nation. Knowing if there are improvements to be
made regarding unemployment and to spot alternative methods when
facing this

II. Statement of the Problem:

  This study aims to answer the questions:
1.) What are the causes of unemployment?

2.) What are the effects of unemployment?

3.) What are some government and non-government programs that
     address the issue of unemployment?

III. Research Methodology:

This study makes use of descriptive method of research. Descriptive
method describes with emphasis what actually exist such as current
conditions and practices. In view of the fact that this method focuses in
the present condition, researchers intend to identify the different causes,
effects and the government and non-government programs that deal
with the issue of unemployment. With the use of this method, researchers
will be able to obtain and answer the research questions in a systematic
and factual way.

      Since this study focuses on the increasing rate of unemployment in
a state, the descriptive method of research is the most appropriate
method to use.

2.) Significance of the Study:

Country/ Nation
Unemployment has risen globally. It is the most acute and persistent of
social problems in a nation, so, knowing the unemployment rate will simply
decrease the suffering of a nation from the reduction in productivity of
labor and the overall stability of the economy to produce in the future.
The nation as a whole will know its stability of its economy. The nation’s
production of goods and services lie on the ability of the country to
employ its people. By studying unemployment, the nation will be aware of
the importance of controlling unemployment. This research paper would
somehow contribute to the materials needed to improve the nation’s
economic growth, since this paper recognizes the causes, effects and the
possible methods to develop regarding unemployment.

Citizens should be aware of the scarcity and must be concerned when a
nation is not producing to its full potential. Different groups of citizens will
be able to receive different benefits from this study. These citizens include
the following:

a.) Government / People in the Government
 Since this paper includes distinguishing the government and non-
government programs addressing the issue of unemployment,
government will be able to know on which aspect should be prioritized.
Detecting errors and weaknesses could not be so hard with the use of this

b.) Private Sector / Small Scale Industries
Understanding this study would help private sectors / small-scale industries
be encouraged to provide employment to the unemployed because of
the facts gathered from this study such as the unemployment effects, that
are currently hurting industries and in some way would affect businesses in
the future.
c.) Economists
 Economists will gain necessary information and will widen personal
knowledge on being aware of the economic level of the nation. This
research paper would also help the economists to realize possible
solutions and alternative methods when facing this crisis.

d.) Job Seekers
Job seekers will be conscious enough to the employment level of their
chosen fields because this study takes account of the unemployment rate
on some countries.
e.) Students
This study could introduce students to what is happening in the current
economy. This might help these individuals prepare for their economic
involvement in the future.

f.) Researchers
With the success of this study, researchers will be able to achieve success
in their objectives and aims. Moreover, researchers will be able to
promote awareness on the threat brought by unemployment.

3.) Summary:
      This dissertation is dedicated to the analysis of the increasing
number of unemployed people.
      The purpose of this study is to determine the causes, effects and
some government and non-government programs that address the issue
of unemployment. The research questions posed were answered through
the analysis of the data gathered and it resulted to these findings:

      1. Unemployment originates in five ways:

FRICTIONAL UNEMPLOYMENT is a natural by-product of normal entry and
exit from the labor market, voluntary job charges, or layoffs or firings.

STRUCTURAL UNEMPLOYMENT results form mismatches between workers
and jobs because of changes in the skill requirements of job openings or
the failure of individuals to obtain marketable skills.

SEASONAL UNEMPLOYMENT is a result of the annually recurring influences
of weather, vacations, and the like on labor markets.

CYCLICAL UNEMPLOYMENT results from downturns in the overall levels of
economic activity (recessions).

INDUCED UNEMPLOYMENT is caused by some government policies that
reduce job openings or the incentives to work.

      Other factors that causes unemployment:

SECTORAL SHIFTS. Changes in the composition of demand among
industries or regions are called sectoral shifts. Because it takes time for
workers to search for jobs in the new sectors, sectoral shifts temporarily
cause unemployment.

JOB SEARCH. One reason why economies always experience some
unemployment is job search. Job search is the process of matching
workers with appropriate jobs.

      2. The effects of unemployment on:
ONE’S SELF. They face financial hardships, complete financial ruin, may
use up all of their savings, go without many things they have become
accustomed to having, loss of skills and good work habits, can impose
severe psychological costs, loss of self-respect.

FAMILIES. Unemployment can threaten the stability of the family. A fall in
income leads the breadwinner of the house to resist the needs and wants
of family members and family relationships suffer as a whole. It could
possibly affect the family’s bonds, division of labor, and decision-making.
The impact of prior family relations on the family's coping response to the
experience of unemployment is also a common effect.

ECONOMY. As a nation, high unemployment hurts the entire
economy. Economic effects are related to the impact of unemployment
on the nation’s production of goods and services. When unemployment
rises, people lose confidence in the economy and also in their
government. Human resources are idle that could lead to wastes, and are
likely to cause a loss of real income. Current production of goods and
services are effected as well as the future production. Workers and
machines are also inactive. Capital goods, plant and equipment become
outdated but are not replaced. The nation could suffer a reduce in
productivity of labor and the overall ability of the economy to produce in
the future.

       3. The government and non-government programs that address the
issue of unemployment:

Unemployment is really is in for less than a year, but the government and
non-governmental bodies cannot give assurance that they will be
deployed in the near future. Here are some of the governmental
programs that they form, but as to my research, they are only suggestions
from the semiconductor and electronics, and sea-based sectors that are
not visible to the unemployed workers. From the Department o Budget
and Management agreed to allocate P400m for the displaced workers
but month has passed but this displaced workers are still displaced the
question is where did it go? From this situation let us go to the non-
governmental programs that are more visible to the displaced workers
from different places on the Philippines. The Comprehensive Livelihood
and Emergency Employment Program (CLEEP), this was the primary
project for unemployment on Northern Mindanao and there are
subprojects under this main project. In Cavite the main purpose of their
program is to give a chance to be an entrepreneur.
4.) Conclusions

1. There are still some people who are unemployed even when the overall
economy is doing well. The rate of unemployment rate never falls to zero;
instead, it fluctuates around the natural rate of unemployment. It is an
inevitable phenomenon because economy is always changing.

2. The Government corresponds to the effects brought about by
unemployment. It conducts programs that would help protect citizens
affected by this phenomenon.

3. Unemployment first affects large associations down to the lowest. The
whole economic environment is the first to be affected, followed by large
companies, financial stability of families and eventually the individuals.

  1. Citizens especially those who are working must have awareness on
     the current economic condition so one could easily adapt to
     changes that the economy might undergo.
  2. Jobseekers should accept job offers even when its attributes will
     not match one’s skills. This could help lower the unemployment rate.