Chapter 1

BACKGROUND OF THE STUDY

Introduction

Unemployment is a phenomenon that occurs when a person who is actively searching for

employment is unable to find work. 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. According to Emmanuel F. Esguerra,

unemployment in the Philippines remains high by Southeast Asian Standards notwithstanding

the change in definition of unemployment in 2005.

People, who are expected to be at work, are those who are on legal age and good physical

condition, as well. It has also as advantage if those adults possess educational qualification,

enough to be employed in technical, professional jobs.

But, reports have been made that despite of large rate of adults in an particular area, there

are still those who are not able to work, or those are unemployed.

In this study, researchers will identify the reasons of unemployment among selected

adults in City of Imus, Cavite and the researchers will try to come up with suggestions of

opportunities from which they earn a living.

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Objectives of the Study

This study aimed to:

 Know the reasons of unemployment of selected adults in City of Imus, Cavite.

 Determine the possible opportunities to earn a living even though they are unemployed.

Statement of the Problem

This study sought to answer the following questions:

 What are the reasons of unemployment of selected adults?

 What are the possible opportunities for them to earn a living even though they are

unemployed?

Significance of the Study

This study is beneficial to the following:

 To the unemployed adults. This study will help them that there’s always means to earn

a living.

 To the employers. This study will help them know that there are still people who are

looking for jobs and are still skilled to work.

 To the government officials. This study will inform them of the unemployment status of

adults in the community, and will make them plan for the opportunities to be given to

those who are unemployed.

 To the future researchers. This study will serve as a guide and it will help them find an

idea on their future research.

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Scopes and Limitations

This study aimed to find the reasons of unemployment of selected adults in City of Imus,

Cavite and cited possible opportunities that will help them earn a living even though they are

unemployed. This covers those people whose ages range from 24 to 50 years old; and is not

limited to those who have no jobs but have own businesses.

Research Paradigm

Figure 1

Reasons of
Selected Adults in
sS and
Unemployment
City of Imus, GO Negosyo
Their Opportunities
Cavite.
to Earn.

This shows the paradigm of independent variables, dependent variables and output of the

study. GO Negosyo is a way to help them earn money. Example, by helping them to recycle used

materials and sell them. We can also give them things that they can use in their own business.

Definition of Terms

The following terms are defined operationally.

Unemployment – the state of not having a job.

Adult – people whose ages range from 24 to 50 years old.

Reasons – a statement or fact that explains why something is the way it is.

Opportunities – an amount of time or a situation in which something can be done.

3
 Chapter 2

REVIEW OF RELATED STUDIES AND LITERATURE

Local Literature

Felipe Salvosa wrote an article entitled, “Philippines Struggles with Unemployment

Despite Economic Growth.” The article tells that despite the rapid economic growth in the

Philippines in recent years, unemployment remains a persistent problem for sprawling Southeast

Asian nation of more than 100 million people.

Under Former President Benigno Aquino, in office since 2010, unemployment has fallen.

The latest figures shows the rate at 6.4 percent in the second quarter of this year, down from 7

percent a year earlier. But progress has been uneven and the Philippines still has one of the

highest rates of unemployment in the Asian Region.

One reason is that job creation has struggled to keep pace with an ever-expanding

population. In three of the past five years, the number of people entering a job market has been

greater than the number of jobs created.

The conundrum highlights the difficulty of spreading the benefits of economics growth

and suggests they have yet to trickle down to more deprived areas.

4
 Participation in the labor force remains relatively low. Only about 65% of the population

aged 15 years old and above is looking for work, one of the lowest levels in region. This

compares with 78% in Vietnam, 72% in Thailand and 68% in Indonesia.

This is partly explained by the high value set on further education in the Philippines:

young Filipinos typically spend time in college before entering the labor market, contributing to

the lower participation rate. Others in the region go to work earlier.

Another factor may be the low quality of jobs available. Last year, just 58% of workers in

both formal and informal employment were in what were described as paid jobs. The rest, 28%

were self-employed, with no guaranteed income, and 11% percent worked on family-owned

farms or other businesses where they typically receive food and lodging but no actual cash,

according to official statistics.

Benjamin Diokno, an economist at the University of the Philippines and former budget

minister, says this relatively large number of unpaid workers about 4 million people bloats the

ranks of the unemployed people.

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Local Study

According to Emmanuel F. Esguerra last 2010, unemployment in the Philippines remains

high by Southeast Asian standards notwithstanding the change in definition of unemployment in

2005. Firm level data also support the survey finding of a heightened sense of employment

insecurity among workers in recent years. Expansions have played only a minor part as far as the

hiring of labor in recent years is concerned. The sluggish growth of employment is often cited as

an argument for reducing labor regulations.

However, empirical evidence to support this policy prescription is scanty for the

Philippines and at the best mixed for other countries. The key to stable and productive

employment is rapid and sustained economic growth supported by investments in physical and

human capital.

Ray Brooks Publication in a study last 2002 entitled, “Why is Unemployment High in the

Philippines?” The study tells that unemployment has remained high in the Philippines, at almost

twice the level of neighboring countries, despite relatively fast employment growth in the fast

decade. Employment growth was not sufficient to reduce unemployment because of rapid

population growth and increased labor force participation.

This paper shows that Philippine employment growth and unemployment declines were

positively correlated with real GPD growth and, to a lesser extent, negatively with the real

6
minimum wage. The key Policy implications are the higher economic growth and moderation of

increases in the real minimum wage are required to reduce unemployment.

Furuoka Fumitaka published an academic paper last 2009 entitled, “Unemployment and

Inflation in the Philippines” that empirically analyzes the relationship between unemployment

rate and inflation rate in the Philippines over the period 1980-2006. The negative association

between unemployment and inflation is known as the Phillips Curve because the trade-off

relationship between these two variables was first pointed out by William Phillips in 1958. Since

then, the Phillips Curve has remained an important foundation for macroeconomic management

in various countries. The main finding of this study is that there exists a co-integrating

relationship—but no casual relationship—between unemployment rate and inflation rate in the

Philippines.

7
Foreign Literature

AFP posted an article entitled, “UK Unemployment dips to Lowest Rate since 1975.”

The article tells about the Britain’s unemployment has dipped to 4.6%, the lowest level for 42

years. However, wage growth has been weak, dampening expectations for a rise in the Bank of

England’s main interest rate anytime soon.

The unemployment rate fell to 4.6% in the three months to the end of March from 4.7%

in the quarter ending in February, the office for National Statistics said in a statement.

In the first three months of the year, 1.54% million people were recorded as unemployed,

down 152,000 year-on-year, the ONS added.

The number in employment, meanwhile, surged by 122,000 to a record high of almost 32

million people.

Also, the ING Bank Economist, James Smith, said that the astonishing rise in UK

employment isn’t enough to mask the fall in real wages and that this already appears to be

dampening consumption, and why they don’t expect a UK rate hike before 2019.

British inflation hit a 3.5 year high in April, official data showed Tuesday. The Consumer

Price Index rallied to 2.75% from rate 2.3% in March.

8
 The Bank of England blames recent rises in UK inflammation mainly on a 16-percent fall

in sterling since Britain’s referendum last year to leave the European Union.

Dr. Mark Celis, Mr. Billy Festijo and Engr. Aristeo Cueto wrote an article entitled,

“Graduate’s Employability: A Tracer Study for Bachelor of Science in Hotel and Restaurant

Management.” This study primarily determined the employability of the graduates of Hotel and

Restaurant Management of Lyceum of Philippines University from 2005-2009. Specifically, it

sought to determine the job placement profile of the graduates and relevance of school related

factors to job placement. It also identified the work related values and skills that contribute in

meeting the demands of the present job. Furthermore, this research proposes a program to

improve employment rate for Hotel and Restaurant Management graduates of LPU. This tracer

study used the descriptive research design. Majority of the respondents are gainfully employed

and landed a job from one to two years after graduation. Most of them are on contractual basis

and are working in the Philippines. Majority are professionals working as rank and file in HRM

establishments. Salaries and benefits play a big role in staying or leaving the first job. Human

Relations skills and communication skills are deemed to be the most useful competencies learned

by the graduates from LPU; perseverance was the highest work value for the respondents.

Languages play an important role in their work while professional subjects are relevant for job

placement and the faculty member’s communication and mastery skills proved the most

important in terms of school related factors in terms of faculty and instruction.

9
Foreign Study

Margie McHugh, Jeanne Batalova, and Madelaine Morawskin wrote a study before

about unemployment, “Brain Waste in the Workforce: Select U.S and State Characteristics of

College-Educated Native-Born and Immigrant Adults.” The study tells about MPI research in the

United States and Europe has demonstrated the challenges facing foreign-educated individuals

who seek high-skilled employment that utilizes their talents and profession experience.

In the United States, these challenges include difficulties in obtaining recognition of

professional experiences and credentials earned from educational institutions abroad, acquiring

professional-level English skills, navigating costly or time-consuming recertification processes,

and building professional networks and U.S job search skills. In a series of fact sheets available

here focusing on the United States and a dozen key states, MPI assesses the extent of “brain

waste”- that is, the number of college-educated immigrants and native-born adults ages 25 and

older who are either unemployed or have jobs that are significantly below their education and

skill levels. The fact sheets also offer calculations nationally and at state levels of

underutilization of education among immigrant and native-born professionals with engineering,

nursing, and teaching degrees at the undergraduate level.

According to the study of Louis N. Christofidesa, Sofronis Cleridesa, Costas Hadjiyian,

Michael S. Michael and Marios Stephaniedes, the number of foreign workers in Cyprus has been

increasing sharply in the last 15 years. This paper investigates the impact of foreign workers on

10
unemployment, labor force participation and part-time employment in Cyprus, using data from

the EU Labor Force Surveys for the period 1999-2005.

This is examined overall, and by age group, or education, level. The study finds that the

presence of foreign workers has not affected total unemployment or total labor force

participation in Cyprus. Part-time employment seems to be marginally affected overall. On the

other hand, the presence of foreign workers affects the probability of unemployment, labor force

participation and part-time employment of some age and education groups.

A study of Dr. Diana Cheong last April 2009 tells that unemployment issues in Brunei

Darussalam was commissioned by the Centre for Strategic and Policy Studies (CSPS), with

support from His Majesty’s Government of Brunei, corporate bodies, professional organizations

and other relevant stakeholders as a means of addressing the issue of unemployment among the

youth in the country.

The study resulted in:

● Publishing the Unemployment Study in 2008 with the objectives

and crucial assessments made on policy development, legislation and administration in

addressing unemployment issues among jobseekers in the Sultanate.

 The outcome of this study resulted in the organizing of a job fair with walk-in job

interviews and candidate screening by 16 companies in the private sector at Chancellor

Hall, University Brunei Darussalam, in February 2008.

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 ● Holding public seminars at The Empire Hotel & Country Club, Brunei Darussalam in the

form of a Round-Table Session in collaboration with Asia Inc. Forum in April 2009.

Last September 2002, the study of Aysit Tansel and H. Mehmet Tasci tells that there are

few studies on unemployment duration in developing countries. This is the first study on

duration aspect of unemployment in Turkey. They used the results of the Household Labor Force

Surveys of 2000 and 2001 to construct a cross-section of durations of unemployment spells.

They also analyzed the determinants of probability of leaving unemployment or the hazard rate.

The effects of the personal and household characteristics and the local labor market conditions

are examined. Non-parametric and parametric estimation methods are used. Unobserved

heterogeneity was not significant. Two alternative definitions of unemployment are considered.

The analyses are carried out for men and women separately.

The results of the study indicated that women are experiencing higher unemployment

durations than men. Age has a negative and education has positive effect on the hazard rate. The

effect of the local unemployment rate is large and negative. Duration dependence of the exit rate

from unemployment is different for men and women. For men, there is a slight U-shaped

duration dependence, while for women there is no duration dependence.

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Synthesis

Various articles, literatures, studies and well-known people had lawfully proven some of

the reasons of unemployment rate. According to the Ray Brooks Publication, the unemployment

is high in the Philippines because of the rapid population growth and increased labor force

participation. Jeremy L. De Jesus and Dennis S. Mapa also said that unemployment is a

significant development challenge in the Philippines. Furuoka Fumitaka wrote an article,

“Unemployment and Inflation in the Philippines,” that analyzed the relationship between

unemployment rate and inflation rate in the Philippines over the period, 1980-2006. All the

studies show the main problem in unemployment, the rapid growth. Some studies also tackled

about the exact rate of unemployed adults in a year. This study shows that unemployment is our

country’s problem. Also, Dr. Celis, Mr. Festijo and Engr. Cueto States the employability of

Hotel and Restaurant Management in contributes in meeting the demands of present job.

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 Chapter 3

RESEARCH DESIGN AND METHODOLOGY

Research Design

This research is descriptive in nature. The study tells the reason why most of the adults

are unemployed and what opportunities are ahead of them to earn a living.

Respondents of the Study

The respondents of the study were 200 selected unemployed adults in City of Imus,

Cavite with ages 24-50 years old. We picked the people with ages 24-50 years old because they

are the ones who has a lot of responsibilities and in dire need of jobs.

Data Gathering Procedure

The researchers asked permission from the principal through a letter. Then, the

researchers conducted the survey using the questionnaires in every chosen unemployed adult.

After the questionnaires were collected, the data was checked and tallied according to the

respondent’s answer.

Sampling Technique

The researchers used the purposive sampling technique. The purposive sampling

technique is a non-probability sample that is selected based on characteristic of a population and

the objective of the study.

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Statistical Treatment of Data

1. Frequency Distribution

The frequency distribution was used in this study to ascertain distribution according to

selected variable.

2. Percentage

Formula:

Where,

P = percentage

F = frequency

N = number of respondents

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 Chapter 4

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Figure 2

Percentage Distribution of Respondents According to Barangay

Toclong

1.50% Poblacion
1%
Bayan Luma
2%
Tanzang Luma

2.50% Palico
18%
10% Medicion
3%
Alapan

7.50% Malagasang
9.50%
Pag-Asa

Buhay na Tubig

2.50% 24% Carsadang Bago

Pasong Buaya

Bucandala
2%
3.50%

The evidence from this pie graph shows that Barangay Bayan Luma has the highest
number of respondents who don’t have work which has 24%. Next is in Barangay Toclong with
18%, Barangay Medicion with 13%, Barangay Malagasang with 9.5%, Barangay Poblacion with
7.5, Barangay Palico with 3.5%, Barangay Pag-asa with 3%, Barangay Alapan and Buhay na
Tubig with 2.5%, Barangay Anabu with 2%, Barangay Bucandala with 1.5% and lastly,
Barangay Pasong Buaya with 1%.

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 Figure 3

Percentage Distribution of Respondents According to Age

This pie graph shows the age distribution of 200 people who are unemployed in City of
Imus, Cavite. Ages 34-40 years old have the greatest number of unemployed people which
comprises 30% of the respondents, while ages 41-45 years old are next with 24%, 26-30 years
old are third with 23%, fourth is 46-50 years old with 22% and ages 31-35 years old are the last
which comprises 14%.

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 Figure 4

Percentage Distribution of Respondents According to Gender

According to the survey, out of 200 people who completed the questionnaire, 68% of
them are female, while 32% are male. This pie graph shows that the number of unemployed
women is greater than men in City of Imus, Cavite.

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 Figure 5

Percentage Distribution of Respondents According to Reasons of Unemployment

This pie chart shows reasons why they are unemployed. As you can see, 43% of 200
respondents said that they need to be at home with their family, while 16.5% said that they are
lack of educational qualification (8 people are elementary under graduate, high school under
graduate, high school graduate, 5 people are college graduate and 4 people are elementary
graduate), 8% of them said that they are incapable of working, 7% said that they lack finances to
complete requirements, 4% said that they have no time for work, 3.5%% of them are physically
challenged , 3% have health issues, 2.5% said that they have personal problems and are afraid to
work because they have no experience and 10% of them have their own reasons which includes
pregnancy, waiting for visa abroad, taking care of her special child baby, because of church and
lack of support from parents.

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 TABLE 1

Frequency Distribution of the Possible Opportunities to Earn a Living

What could be the possible opportunities for you to earn a Frequency Rank
living?

Online selling of products 34 3

Put up a mini store 94 1

Retailing of products 13 7

Direct selling of goods/products 20 4

Putting up a garage sale 18 5

Joining a networking business 8 8

Peddling (paglalako) 14 6

Others: 46 2

According to the table shown above, most of the 200 respondents said that putting up a
mini store can be the possible opportunity to earn a living, but 46 of them have suggested other
ways to earn a living. This includes part time helper, restaurants, electronics, eatery,
construction worker, work abroad, own a pedicab, selling candles, auto supply, office clerk, buy
and sell, factory, computer shop and school service. While, 34 of them voted for Online selling
products, 20 people chose direct selling of goods/product, 18 people for putting up a garage sale,
14 people of peddling (paglalako), 13 people for retailing of products, 8 people for joining a
networking business.

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 Chapter 5

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary of Findings

1. According to the figure shown in Chapter 4 (Figure 2) Barangay Bayan Luma has the
highest total of unemployed adults. Next is Barangay Toclong, Barangay Medicion,
Barangay Malagasang, Barangay Poblacion, Barangay Palico, Barangay Pag-Asa and
Buhay na Tubig, Barangay Anabu, Barangay Bucandala and lastly, Barangay Bucandala
having the lowest population of unemployed adults.
2. Most of the unemployed respondents are female and are ages 36-40 years old.
3. Most of the respondents said that they need to be at home with their family with 43%,
while 16.5% said that they lack of educational qualification (8 people are elementary
under graduate, high school under graduate, high school graduate, 5 people are college
graduate and 4 people are elementary graduate), 8% of them said that they are incapable
of working, 7% said that they lack finances to complete requirements, 4% said that they
have no time for work, 3.5%% of them are physically challenged , 3% have health issues,
2.5% said that they have personal problems and are afraid to work because they have no
experience and 10% of them have their own reasons which include pregnancy, taking
care of her special child baby, because of church and lack of support from parents.
4. Ninety four of the respondents said that putting up a mini store can be the possible
opportunity to get into employment, but 46 of them have their own way to earn a living.
This includes part time helper, restaurants, electronics, eatery, construction worker, own
a pedicab, selling candles, auto supply, office clerk, buy and sell, factory, computer shop
and school service. While, 34 of them voted for Online selling products, 20 people chose
direct selling of goods/product, 18 people for putting up a garage sale, 14 people for
peddling (paglalako), 13 people for retailing of products, 8 people for joining a
networking business.

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A. Conclusion

1. Most of the respondents are female.

B. Recommendation

1. For the unemployed adults, since they cannot work outside the house, they may

put up mini store in order to earn. Also, they may engage online selling of goods

or products, selling of clothes or shoes in a garage, putting up karinderya/eatery.

2. For the employers, they should not reject possible employees just because of

incomplete requirements or unexperienced. They must first asses the employee’s

skills and abilities.

3. For the government officials, they could open job fairs for unemployed citizens,

with only minimum requirements.

4. For the future researchers, this study can be their guide especially if their topic is

about jobs.

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