Underemployment - is a measure of employment and

APPLIED ECON (CONTINUATION) labor utilization in the economy that looks at how well the
Market Structure labor force is being used in terms of skills, experience, and
Perfect Competition - is a hypothetical market structure availability to work. It refers to a situation in which
in which there are very many firms, each of which individuals are forced to work in low-paying or low-skill
represents an infinitesimal share of the market jobs.
- Products are identical or homogeneous - when a holder of a BS Accountancy degree works
- Easy for the new firm seller to enter market, and as a waiter. In this case, the individual works in a
for existing firms and sellers to leave market low-paying, low-skill job despite his impressive
- No single seller and no single buyer can influence educational background.
the change in market price and products - Another example is when an engineering graduate
Imperfect Competition - is competitive market situation works as a pizza delivery employee.
where there are many sellers but they are selling
heterogeneous or dissimilar goods Types of Employment
Monopoly - is a firm who is the sole seller of its product Probationary Employment - A probationary employment
and where there are no close substitutes contract is an employment arrangement between an
- One producer or seller employer and a probationary employee wherein the latter
- Difficult for new firms to enter market will be required to undergo a probationary period to
- Offer unique goods and services and it is hard to determine their fitness to qualify for regular employment.
find substitutes. - The probationary employment should not exceed
- Example: Meralco 180 calendar days.
Oligopoly - a market structure with few firms and barriers - Non-compliance with the requirements may result
to entry. There is often a high level of competition between in the employee being reclassified as a regular
firms, as each firms makes decisions on prices, quantities employee.
and advertising to minimize profit. Regular Employment - It is an employment arrangement
- Products are identical or differentiated between an employer and a regular employee wherein the
- Entry of new competitors is difficult latter has been engaged to perform activities that are
Monopolistic Competition - is a type of market structure usually necessary or desirable in the usual business or
where many companies are present in an industry and they trade of the employer. Regular employees have no specific
produce similar but differentiated products end to their employment, unlike non-regular employees.
- Large number of sellers acting independently They are presumed regular unless proven otherwise.
- Limited price control - Legal basis: ART. 295. [280] Regular and Casual
Employment.
Labor Supply, Population Casual Employment - is a type of employment in the HR
Growth And Wages world that is not permanent or ongoing. It is usually on an
Labor - is the effort that people contribute to the production as-needed basis and can be for a few hours or days at a
of goods and services. Labor resources include the work time.
done by the waiter who brings your food to a local - If the employee has rendered service for at least
restaurant as well as the accountant who computes and one (1) year in the same company, whether the
analyzes financial statements to assess the profitability casual employment is continuous or not, they shall
and solvency of the company. be considered a regular employee concerning the
Unemployment - refers to a state in which an individual activity they are employed and will continue
actively seeks employment but is unsuccessful. It is said to rendering service while such activity exists.
be one of the critical measures of the economy's strength. Project Employment - refers to an employment
- The unemployment rate is the most widely used arrangement wherein a project employee’s employment
method to determine a country's unemployment has been fixed for a specific project or undertaking, the
rate. completion or termination of which has been determined at
- How to get it? (no. of employed/labor force)*100 the time of the engagement of the employee.
Types of Unemployment ➢ Project employees – refers to employees whose
Structural - results from industrial reorganization, often employment is connected to a project or a
due to technological change rather than fluctuations in phase/stage of a project.
supply or demand - The project’s completion or termination should be
- Qualifications are inadequate to meet job determined or determinable at the time of the
requirements set by the employers engagement of the project employee.
- Technology or cheap labor took my job
Seasonal - occurs when jobs are only available at certain Three Sectors in the Philippines
times of the year • In the Philippines, the largest economic
Cyclical - relates to the cyclical trends in growth and sectors are Industry, service, and
production that occur within the business cycle. When the agriculture, in terms of contribution to
business cycle is at its peak, cyclical unemployment is low GDP. In past years, the service sector has
Frictional - occurs when a worker moves from one job to exhibited continuous growth. Agriculture,
another and spends time trying to find his or her ideal job. although still substantial, continues to
Exist even when there is full employment decline.
Technical Unemployment - caused by technological • The Philippine government aims for GDP
changes due to modernization. growth rates of 6–7% in 2023 and 2024.
Disguised Unemployment - happens when more people Industrial Sector - The major industries of the Philippines
are occupied in work than essentially required. include manufacturing and agribusiness. Within
manufacturing, mining, and mineral processing,
pharmaceuticals, shipbuilding, electronics, and Rentals - starting entrepreneurs usually do not have their
semiconductors are the focus areas. own space to start their business. Some rent spaces on a
- Industry posted a quarter-on-quarter growth of 0.4 mall or stalls to start the operation of the business. Rentals
percent in the fourth quarter of 2023. has become an issue to starting entrepreneurs because
Manufacturing, Electricity, steam, water and waste doing a business does not guarantee you a very big sale
management, and Mining and quarrying were the right away, so if you don't make a sale and you still have
contributors to the quarter-on-quarter growth. to pay a rent, it will really cause problem.
Service Sector - In recent years, it has become popular to Minimum Wage - entrepreneurs provide job opportunities
argue that service industries such as information that is why they have employees. Entrepreneurs are called
technology process outsourcing (IT-BPO) and tourism can employer. As an employer they are forced to implement the
serve as principal drivers for achieving sustainable and wage order to all minimum wage earnings regardless of
inclusive economic growth for the Philippines and other their title, rank, etc. The Philippines has this law called
developing countries. The Philippine economy's output Minimum Wage Law. This law establishes a minimum
structure is characterized by a relatively large services amount that an employer can pay a worker for one day of
sector. labor.
- Services recorded the fastest quarter-on-quarter Taxes - is a mandatory financial charge or some other type
growth among the three major industries in the of levy imposed upon a taxpayer by a governmental
fourth quarter of 2023 with 3.2 percent. The top organization in order to fund various expenditures. Failure
contributors to the quarter-on-quarter growth were to pay, along with the evasion of or resistance to taxation,
Financial and insurance activities, Wholesale and is punished by law. Taxes are considered inflows for the
retail trade; repair of motor vehicles and government and outflows for firms. The way tax is imposed
motorcycles, and Public administration and often is justified in the basis of one of two general
defense; compulsory social activities. principles.
Agricultural Sector - The Philippines is still primarily an ➢ The benefits received (Benefits-Received Tax
agricultural country despite the plan to make it an Principle) - this principle relates taxes to the
industrialized economy by 2000. The country’s agriculture benefits taxpayer received from a public good
sector is made up of 4 sub-sectors: ➢ The ability to pay (Ability To Pay Tax Principle)
1. Farming - this approach to taxes relates that those with a
2. Livestock greater ability to pay our taxed more
3. Fisheries Four Main Types Of National Revenue Taxes
4. Forestry • Income
- The country's main crops are rice, corn, coconut, • Indirect (value-added and percentage
sugarcane, bananas, pineapple, coffee, mangoes, taxes)
tobacco, and abaca (a banana-like plant). • Excise
Secondary crops include peanuts, cassava, • Documentary stamp taxes
camote (a type of root crop), garlic, onion, • Amusement
cabbage, eggplant, calamansi (a variety of
lemons), rubber, and cotton. Business Cycle
- Agriculture, forestry, and fishing posted a quarter-
Prosperity - this is the peak of the business cycle wherein
on-quarter decline of -0.02 percent in the fourth there is full employment, and the national output is at full
quarter of 2023. This was mainly due to the capacity, or close to it. Price level tends to increase due to
declines of Palay, Fishing and aquaculture, and
increasing demand for goods and services. Output can no
Corn. longer increase because productive resources are at full
Contemporary Issues Facing Filipino Entrepreneurs capacity or fully employed.
Investment and interest rate - when an entrepreneur Recession - both production and employment fall. The
starts, the very first issue that they encounter is how they
price level is likely to decrease only if the recession is of
will get their capital. Some entrepreneurs do not have the longer duration.
capital in the beginning some may have (out from their Depression - both production and employment at their
savings), but acquiring capital usually comes in a form of lowest level. This is the valley of the business cycle. Under
loan in a bank or any other financial institutions or some such condition, no private businessman is willing to invest
get financial assistant from the government. Entrepreneur because the demand of goods and services are also at its
shoulder higher rates of interest from the loan they made lowest point.
from a financial institution.
- The Great Depression was the worst economic
➢ Investment - is an asset or item acquired with the crisis in modern history, lasting from 1929 until the
goal of generating income. Investing includes the beginning of road to in 1939.
purchase of new plants, new equipment, new
• slowing consumer demand
homes, and net increases in inventories.
- Long-term investment • mounting consumer debt
- Short-term investment • decrease industrial production
➢ Interest rates - it is the amount a lender charges • rapid and reckless expansion of the U.S
for the use of assets expenses as a percentage of stock market
the principal.
- It is usually noted on an annual basis known as the
annual percentage rate or APR
- The assets borrow could include cash, consumer,
goods, or large assets such as a vehicle or
building.
 TYPES OF SOCIAL ENTREPRENEURSHIP
BUS ETHICS (CONTINUATION) Based on Service
Lesson 5: Social Entrep 1. Community Enterprises - are businesses that
Social Enterprise - is a business model to solve social serve a particular geographic community or
issues and problems while providing goods and services. community of interest and have representatives
- It is a kind of entrepreneurship that attempts to use from the community that sits on the board of
business techniques in tackling social, cultural, or directors.
environmental problems. One common thing 2. Social Firms - are enterprises that seek to place
about it is that profit is not their priority. people who might otherwise find it difficult to enter
Business Social Non-Profit the mainstream job market, such as those with
Enterprise / Charity learning difficulties or mental health problems.
Capitalization From own Initial Initial 3. Cooperatives - are organizations owned,
How will the savings; Capital Capital controlled, and run by their members.
venture be bank loans, may come may come 4. Credit Unions - are community-based financial
funded? other from own from own institutions that provide savings and loan facilities
financial savings by savings by for their members.
institutions may also may also 5. Community Development Finance Institutions
be sourced be sourced - provide loans and other types of investment to
from grants from support social enterprises and other small
and grants and businesses.
donations donations 6. Development Trusts - aim to develop a
Capitalization Financial Initial From community through the ownership and
How will the stability Capital donations management of the property.
venture be and may come and 7. Public Sector Spin-outs - are independent
funded? profitability from own sponsors social enterprises that deliver services that were
savings by previously provided by public sector
may also organizations.
be sourced 8. Trading Arms of Charities - are set up to
from grants undertake trading activity to raise money for its
and charity parent company.
donations 9. Fair Trade Organizations - are companies
Purpose Purpose To be Benefit committed to ensuring that producers are paid a
What is the What is the financially society fair price for what they produce.
main goal of main goal sustainable Based on Profit Models
the venture? of the but also 1. Subsidized Social Enterprises - is the more
venture? have a conventional type, wherein the business relies on
positive funding, grants, donations, and other forms of
impact on traditional funding to pay for operational costs.
the chosen 2. Self-sustaining Social Enterprises - are self-
cause sustaining social enterprises, on the other hand,
do not receive grants and can cover operational
Principles of Social Enterprise costs through the revenue generated by their
Cause-driven - A social enterprise is a business without a sales.
profit maximization purpose where the objective and 3. Profitable Social Enterprises - operate with an
purpose is to overcome or alleviate a global or local issue income and are considered profitable.
such as poverty, education, health, technology access, or A social business model is a structure, design, or
the environment. framework that a business follows to bring value to its
Financial and economic sustainability - Like any other customers and clients. Social entrepreneurs can use a
business, financial numbers and cash flow must be in line combination of the nine business models to reach more
with what is expected and sustainable in the long-term. people who can benefit from their social services.
Investor return - Investors will receive a return on their
investment amount only — no dividend. Investors must Business How It Works Examples
only receive back what they put in. Model Name
Profits generated remain - Once the investments are Entrepreneur sales business microfinance
paid back, profit will stay with the company for expansion Support Model support services organizations,
and improvement. directed to the consulting or
Gender-sensitive and environmentally conscious - entrepreneurs in tech support
Tackling gender discrimination and inclusion is vital as well its target
as integrating environmental impact actions. population
Employees are treated fairly - More emphasis on well- Market helps their supply
being at the workplace is given, fostering long-term Intermediary clients by cooperatives like
relationships with employees and striving for their Model marketing or a fair trade
happiness. selling their agriculture and
Joy in their work - Businesses that work for a purpose of clients products also handicraft
helping a cause do it with joy. or services for organization
them
Employment in which a social disabilities or
Model enterprise youth
 provide itsorganizations
clients with job providing work
opportunities opportunities in
and job training landscape,
cafes, printing or
other business
Fee-for-Service charges the membership
model customer organizations,
directly for the museum and
socially also clinics
beneficial
services it
provides
Low-Income generally offer healthcare
Client Model social services (prescriptions,
directly in the eyeglasses)
free-for-service utility programs
model while
focusing on low
income client
Cooperative a free-based bulk purchasing,
model membership collective
organization that bargaining
provides (union),
member agricultural
services to a coops, credit
group that unions
shares a
common need or
goal
Market linkage that focus on import-export,
model building market research,
relationships and also broker
and otherwise services
connecting their
clients with
market for their
clients products
and services
Service that funds social Consulting,
subsidization programs by counselling,
model selling products employment
or services in the training, leasing,
marketplace printing services
Organization sell products or implement any
support model services and the type of business
revenue that leverages its
generated is assets
used to fund an
organization that
runs the
program that the
social enterprise
supports