Unemployment (1).ppt

UNEMPLOYMENT, POPULATION and POVERTY ISSUES MARIA FATIMA M. REYES

What is Unemployment? • In economics, unemployment refers to the condition and extent of joblessness within an economy

• measured in terms of the unemployment rate, which is the number of unemployed workers divided by the total civilian labour force

• Hence, unemployment is the condition of not having a job, often referred to as being "out of work", or unemployed

TYPES OF UNEMPLOYMENT 1.) Frictional Unemployment - when a person loses his current job and is out looking for a new one - the time period from shifting from one job to another is known as frictional unemployment. 2.) Structural Unemployment - happens because of structural changes in the economy - In this type of unemployment, workers do not match with their jobs or they do not have the skill that is required in doing the work.

TYPES OF UNEMPLOYMENT 3.) Classical Unemployment - Classical Unemployment occurs when real

wages for

a job rises above the market-clearing level - Because of this, many more people apply to that job but only few vacant slots are available.

4.) Cyclical Unemployment - happens when there is an economic recession, wherein there is less demand for goods and services - During this time more unskilled workers are unemployed due to the fact that demand for labour decreases.

TYPES OF UNEMPLOYMENT 5.) Seasonal Unemployment - happens because there are some jobs that concentrate only at a certain time of the year -Industries that are seasonal may be fruit picking, tourism, hotels and caterings.

Causes of Unemployment 1.DEFECTIVE INVESTMENT SYSTEM it is the most serious mistake of our economic policy. This mistake has been repeated again and again. If we have adopt labour dominated production system, investment certainly created many jobs.

Causes of Unemployment 2. TECHNOLOGICAL UNEMPLOYMENT caused when developments in technology replace human effort e.g. in manufacturing administration.

Causes of Unemployment 3. POVERTY poverty and unemployment are like twins. It is difficult to distinguish them completely. a person is poor because he is unemployed and if he is unemployed,poverty is natural for him.

Causes of Unemployment

4. DEFECTIVE SYSTEM OF EDUCATION our education system is a rot learning. Its fail in shaping the mental and physical aspect of human being.

Causes of Unemployment 5. RAPID INCREASE IN POPULATION

Causes of Unemployment 6.

INADEQUATE DEVELOPMENT OF AGRICULTURAL SECTOR our 70% of the people are living in the villages. Hence, the agricultural sector should provide the employment to them.

Causes of Unemployment 7.

SLOW PROGRESS OF ECONOMIC DEVELOPMENT -Employment increase is deeply connected with grow rate of economic development. 8. OTHER CAUSES - Recession -REDUCED DEMAND FOR GOODS AND SERVICES -LOW WAGES - SEASONAL VARIATION

EFFECTS OF UNEMPLOYMENT ON THE INDIVIDUAL 1. Loss of Income •Financial insecurity. •Stress / Worry about bills. •Fear of poverty. 2.Loss of Status •Erodes self-esteem. •Decline in self-confidence. 3. Loss of Social Contact •Social isolation. •Social life and leisure restricted by limited finance.

EFFECTS OF UNEMPLOYMENT ON THE INDIVIDUAL 4. Sense of Guilt •Failed themselves •Let down their family. 5. Health Problems •Depression •Anxiety •Stress •Alcohol abuse

EFFECTS OF UNEMPLOYMENT ON THE FAMILY 1.Decline in Living Standards •Repossession of car. •No foreign holidays / leisure activities. •Loss of family home. 2. Poverty •Common among unemployed families. •Affects nutrition, schooling leading to educational disadvantage. •Insecurity

EFFECTS OF UNEMPLOYMENT ON THE FAMILY 3. Strained Relationships •Tension •Possibly violence in the home. •Marital breakdown. 4. Children may Suffer Emotionally and Psychologically •Strain on relationships between parents and children. •Bored breadwinner creating tension. •Worry about the future can result in ill health.

EFFECTS OF UNEMPLOYMENT ON THE FAMILY 5. Can Shape Children’s Views of Employment/Unemployment •Parents are role models for children. •Children of long term unemployed may fall into poverty trap.

EFFECTS OF UNEMPLOYMENT ON SOCIETY 1. Increase in anti-social behavior •Boredom can lead to drug or alcohol abuse, vandalism, and crime. •Areas develop bad reputations and become unemployment black spots. 2. Cost to the State •Unemployed people are financially dependent on social welfare for their income. •Loss of income tax for the government.

EFFECTS OF UNEMPLOYMENT ON SOCIETY 3. Decline in Population in Rural Areas •People forced to leave an area in search of employment. •This has a negative impact on other business and services leading to further unemployment. 4. Children of Unemployed Parents are More Likely to be Unemployed Themselves Where long-term unemployment is accepted as the norm children lack a positive work ethic and a pattern of unemployment develops over generations. 5. Increased Growth of the “Black Economy” Loss of tax revenue for the government as unemployed people receive cash for work done while unemployed.

Factors of inflation • Inflation, in economics, is an increase in the

general level of prices • There are 2 factors of inflation (1) Demand- Pull Inflation. Demand pull inflation happens when price levels go up because there are problems concerning supply and demand. (2) Cost push inflation. Cost push inflation happens when the general prices of products rise, due to increase in raw materials or wages.

Relation of inflation to unemployment

• There is an inverse •

relationship between inflation and unemployment. When unemployment is high, inflation is low but when Inflation is high, Unemployment is low.

POPULATION

• Is a group of similar •

species living in a certain place at the same time. Is the interaction between the organisms that causes a population to change.

CHARACTERISTICS OF POPULATION

•Size •Density •Distribution

CHARACTERISTICS OF POPULATION

1. Size- pertains to the number of individuals in 2.

a population. DENSITY- defined as the number of individuals of a species living in a particular area of that population. 1. Population density increases when the factors are favorable to the population and decreases when they are unfavorable. 2. Population density may vary from year to year and is determined by external factors.

CHARACTERISTICS OF POPULATION 3. DISTRIBUTION- the arrangement of the individuals of a population within a particular space. a. Random Distribution- there is no specific order in random distribution, the organism is spread throughout the area without an over-all pattern. b. Uniform Distribution- the organism are evenly distributed over an area. c. Clumped Distribution- the organism are concentrated in an area. It may offer the population protection from enemies.

REASONS WHY FILIPINO HAVE AN IMMENSE GROWTH OF POPULATION

• • • • •

Tradition of Having Big Families Questions of Gender The male macho image Educational Background Unsatisfactory/Ineffective Family Relationship • Economic Reasons • Contraceptive method

Problems on Population Growth in the Philippines

• • • • • • • •

Environmental problem Social Problem Economic problem Educational Problem Health Problem Spiritual and Moral problem Problem of Food Supply Problem of destruction of nature

IMPACT OF POPULATION IN THE DEVELOPING COUNTRY

• There will be an increase in working age

population and this will give the country an opportunity to develop its human capital • The government and private sector will have to start planning for their education and health needs as well as for their employment. • A growing unemployment rate would mean a rising crime rate, insecurity and instability.

POVERTY • Inability

to secure the minimum consumption requirements for life, health and efficiency on account of insufficient income or property. These requirements include minimum human needs in respect of food, clothing, housing, education and health.

POVERTY CAUSES

EFFECTS

Income Distribution/Inequality

Malnutrition

Natural Calamities and over population

Crime and Theft

Lack of quality Education

Poor Economic Growth

Corruption

Bad-living Condition

Lack of jobs

Child labor

Short-term Solution • Recheck

the poverty framework and include strategies to fight poverty institutions to enhance • Reform coordination, improve efficiency and lessen corruption. To maximize the money we use. By enhancing coordination we may minimize the amount of effort and money we put into these projects through an organized effort. • It is said that we should address poverty specifically per area. So that each place receives the care it needs.

Short-term Solution • We should improve coordination between

the involved agencies and key stakeholders as this will improve efficiency between them. • we should allocate and raise more money to fight against poverty.

Long-term Solution • The government should increase available

• •

resources for social services, poverty reduction and infrastructure. They should also maintain price stability to shield the poor from high food prices and they should lessen corruption and develop infrastructure in order to boost investor confidence. The resources of the local government should be enhanced and their coordination with the national government should be improved. We should conduct more research regarding poverty.

POVERTY 1. Poverty is a very serious problem that must 2. 3. 4.

immediately be dealt with in order to minimize its effects. The Philippines, its government and its agencies have to undergo major reform to fight poverty. Poverty takes a great toll not only in the poor but also the country as whole. Although difficult, poverty may still be solved and thus we must act quickly to solve the problem.

THANK YOU  GOD BLESS