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? 1.) INTRODUCTION: I. Background of the Study: "Unemployed resources would not exist if the economy were operating efficiently." 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 jobs. 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 economists. 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 performance. 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 rise. 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 problem. 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 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 paper. 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. Recommendations 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.