UNEMPLOYMENT RATE
Unemployment or joblessness is the situation of actively looking for employment, but not being currently employed. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.
UNEMPLOYMENT RATE is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is in poor shape and jobs are scarce, the unemployment rate can be expected to rise. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall.
- WIKIPEDIA
Due to Unemployment Rate in the Philippines many people are going to standby in their houses every year in the reason that they are not qualified in their skills on the job that they get, because of their courses,because of their knowledge and ability to work in that job are not enhance during their preparation . so that many people in Philippines not qualified the job that they are going to get.
According to Kimberly Amadeo, There are seven causes of unemployment. Four cause frictional unemployment. This type of unemployment is when employees leave their job to find a better one. Two cause structural unemployment. That's when workers' skills or income requirements no longer match the jobs available. The seventh cause leads to cyclical unemployment.
Frictional and structural unemployment occur even in a healthy economy. The natural rate of unemployment is between 4.5 percent and 5.0 percent, according to the Federal Reserve. The Bureau of Labor Statistics defines unemployed people as those who are jobless and have actively looked for work in the past four weeks. If they don't keep looking, the BLS doesn't count them in the labor force
Seven Causes of Unemployment;
1.Demand- Deficient Unemployment
2.Advance Technology
3.Job Outsourcing
4.Voluntary
5.Relocation
6.Newly Entering the Workforce
7.RE- Entering the Work Force
7.RE- Entering the Work Force
Four Causes of Frictional Unemployment One reason for unemployment is voluntary. Some of the unemployed have saved enough money so they can quit unfulfilling jobs. They have the luxury to search until they find just the right opportunity. The second cause is when workers must move for unrelated reasons. They are unemployed until they find a position in the new town.
The third reason is when new workers enter the workforce. That includes students who graduate from high school, college or any higher degree program. They look for a job that fits their new skills and qualifications. That's a primary reason for youth unemployment.
The fourth reason is when job seekers re-enter the workforce. These are people who went through a period in their lives when they stopped looking for work. They could have stopped working to raise children, get married or care for elderly relatives. These four situations are an unavoidable part of the job search process. The good news is that frictional unemployment is usually voluntary and short-term.
Two Causes of Structural Unemployment
Structural unemployment is neither voluntary nor short-term. These next two causes usually lead to long-term unemployment. The fifth cause is advances in technology. That's when computers or robots replace workers. Most of these workers need more training before they can get a new job in their field.
The sixth cause is job outsourcing. That's when a company moves its manufacturing or call centers to another country. Labor costs are cheaper in countries with a lower cost of living. That occurred in many states after NAFTA was signed in 1994. Many manufacturing jobs moved to Mexico. It also occurred once workers in China and India gained the skills needed by American companies.
And According to Budget and Management Secretary Benjamin E. Diokno, Filipinos are finding more and better jobs. “We understand that quality jobs for Filipino workers will enable them to provide for their families and invest in their children’s future, particularly in education and healthcare.”
Based on the Labor Force Survey (LFS) of the Philippine Statistics Authority showed that employment rate rose to 94.6 percent in July 2018, from 94.4 percent in July 2017. “An average of 1.17 million additional employment has been created so far in the first three rounds of the Labor Force Survey. And this puts the government on track in meeting its target of 900,000-1.1 million employment generation for 2018. With remarkable improvements, the government should not let up on its efforts to continually improve the employment situation in the country,” Socioeconomic Planning Secretary Ernesto M. Pernia said.
For the Economic managers, it was announced that based on the results of the April 2018 Labor Force Survey, 40.89 million Filipinos are currently employed, an employment rate of 94.5% or 0.2 percentage points higher compared to the same period in 2017.The employment rate in April 2018 is 2.5 percentage points higher than a decada ago, when it was at 92% in 2008.The government credits the slight improvement to the acceleration of its "Build, Build, Build" infrastructure program.
I believe that unemployment has remained high in the Philippines,at almost twice the level of some neighboring countries, despite a relatively strong rise in employment. Job growth was not fast enough to reduce the unemployment rate, given rapid population growth and increased labor force participation in the Philippines.But Not All Causes of Joblessness Create Unemployment if someone gives up looking for work, on the other hand, the BLS does not count them in the unemployment rate. If someone retires, goes back to school or leaves the workforce to take care of children or other family members, that is not unemployment.That's because they no longer look for work. Even if they would prefer a job, the BLS doesn't count them as unemployed unless they looked in the past month.
People who have searched in the past year, but not the past month, are called marginally unemployed. They are included in the BLS’s “real unemployment rate.” Some people say the government undercounts unemployment by reporting the official rate, rather than the “real” rate.
