1. EMPLOYMENT AND
UNEMPLOYMENT
DEBUQUE, A.C
4 BSED- SOCIAL STUDIES

3. Types of Unemployment
 Frictional Unemployment
 Seasonal Unemployment
 Structural Unemployment
 Cyclical Unemployment

4. Frictional Unemployment
 Is short-term joblessness experienced by people who
• are between jobs
• are entering the labor market for the first time
• are entering the labor market after a long absence
 (Examples)

5. Frictional Unemployment
“short-term”
 Results:
Causes little hard ships (why?)
Can get important benefits
Spend time searching for jobs that are suitable and will make
the employees be more productive
They can earn higher incomes
Firms have more productive employees
Society has more goods and services
POSSIBLE?

6. Seasonal Unemployment
 Is joblessness related to changes in weather, tourist
patterns, or other seasonal factors
 (Examples)

8. Seasonal Unemployment
 “short-term” and predictable
 Results:
• Positive: workers are often compensated in advance
• Negative: they complicates the interpretation of
unemployment data (most applicable to countries with 4
seasons)

9. Structural Unemployment
 Is joblessness arising from mismatches between workers’
skills and employers’ requirements or between workers’
locations and employers’ locations
 (Example)

10. Structural Unemployment
 Long-term problem, often lasting several years or more.
WHY?

11. Types of Unemployment
Frictional Unemployment
Seasonal Unemployment
Structural Unemployment
Microeconomics? Or Macroeconomics?
WHY?

12. Cyclical Unemployment
 Is joblessness arising from changes in production over the
business cycle
 (Examples)

14. Actual Previous Highest Lowest Dates Unit Frequency
7.00 7.50 13.90 6.30 1994 -
2014
Percent Quarterly

15. Unemployed persons in April of 2014:
Sex: 61.7 percent were males
38.3 were females
age group: 15 to 24- 49.8 percent
25 to 34- 30.5 percent
educational attainment: college graduates- 22.4 percent
college undergraduates- 14.5
high school graduates- 32.7

16.  The employment rate in April of 2014 is estimated at 93.0 percent and
the number of employed persons rose to 38.66 million, from 37.01
million recorded a year ago. The labor force participation rate is
estimated at 65.2 percent.

18.  The Philippines has the highest unemployment rate among members
of the Association of Southeast Asian Nations (Asean), according to
a report of the International Labor Organization (ILO) published in
2014.
 This reflects the fact that employment is not expanding sufficiently
fast to keep up with the growing labor force
 Philippine unemployment rate since 2005 has remained around the
7-8 percent range.

21. The Costs of Unemployment
 Economic Costs
 Broader Costs

22. Economic Costs
 Opportunity cost of lost output- the goods and services
the jobless would produce if they were working, but do
not produce because they cannot find work

23. “When there is cyclical unemployment, the nation
produces less output, and so some group or
groups within society must consume less output.”

24. Broader Costs
 Costs of unemployment that go beyond lost output
The human costs that we do not measure in peso
 Unemployment causes:
Psychological and physical effects (what are they?)
problem in achieving important goals

25. How unemployment is measured?
 Formula:
Unemployment rate= Unemployed/ Labor force
or
Unemployed
(Unemployed+Employed)

26. Problems in Measuring Unemployment
 The treatment of involuntary part-time workers
(individuals who would like a full-time job, but who are
working only part time)
 The treatment of discouraged workers
(individuals who would like a job, but have given up searching for
one)
 WHY?
Problem? Determining which ones.

27. Remember, a person is counted as
unemployed if he or she did not work in
the past week, but took some active
steps to look for work in the past month.

28. What is the importance of unemployment
rate?
 To know the number of people who are searching for jobs, but
have not yet found them
 It also tells us something unique about conditions in the macro-
economy

29. END.