[2.2] Unemployment

• unemployment


  a situation where a person has no work despite being available for work and actively looking for work
• Labor Force


  Refers to the population 15 years old and over who contribute to the production of goods and services in the country. It comprises the employed and unemployed.
• Employed


  Consists of persons in the labor force who are reported either as at work or with a job or business although not at work. Persons at work are those who did some work, even for an hour during the reference period.
• Unemployed


  Consists of persons in the labor force who are reported as (1) without work; (2) currently available for work; and (3) seeking work or not seeking work because of the belief that no work is available, or awaiting results of previous job application, or because of temporary illness or disability, bad weather or waiting for rehire or job recall.
• Note: The new definition of unemployed was adopted starting April 2005 per NSCB Resolution No. 15 dated October 20, 2004.
• Underemployed


  Refers to the employed persons who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours.
• types and causes of unemployment

  • frictional
  • structural
  • cyclical
  • classical
  • seasonal
• frictional

  • Re-entry to the workforce.
  • Transition from one job to another.
  • Entry to the workforce after studies.
• cyclical

  • Fewer jobs than applicants.
  • Low consumer demand because of a crisis.
  • Employers need to cut expenses to maintain profit.
• seasonal

  • End of an event activity, or phenomenon.
• structural

  • Skills do not match with available jobs.
  • Workers cannot move to a new location.
  • Use of machines and other technological changes.
• classical

  • High minimum wage.
  • Higher wages and more benefits.
• field: economic

  on individual

  • Employment gaps.
  • Loss of skills and other abilities.
  • Decline in reemployment wages.
  • Decline in income and consumption.
• field: economic

  on society

  • Recession
  • Higher taxes
  • Organizational inflexibility
  • Decline in national output
  • Increased spending on social services.
  • Labor migration
• field: social

  on individual

  • Loss of freedom to decide.
  • Loss of human relationships and family life.
• field: social

  on individual

  • Crime and violence
  • Elevated rates of suicide
  • Racial and gender inequality
  • Restricted participation in social activities
• field: psychological / physiological

  on individual

  • Stigma
  • Motivational Loss
  • Ill health and mortality