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Economic Challenges in the Philippines

The document discusses basic economic problems in the Philippines, focusing on unemployment, underemployment, and overpopulation. It highlights the challenges faced by individuals in finding suitable jobs and the impact of these issues on economic stability. The presentation also outlines potential solutions, including policy recommendations aimed at job creation and attracting investments.

Uploaded by

Nikay Amazona
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21 views16 pages

Economic Challenges in the Philippines

The document discusses basic economic problems in the Philippines, focusing on unemployment, underemployment, and overpopulation. It highlights the challenges faced by individuals in finding suitable jobs and the impact of these issues on economic stability. The presentation also outlines potential solutions, including policy recommendations aimed at job creation and attracting investments.

Uploaded by

Nikay Amazona
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

BASIC ECONOMIC

PROBLEMS OF THE
COUNTRY Presentation by:
Ms. Glaidel V. Amazona
BASIC ECONOMIC
PROBLEMS
What goods to produce and service
to provide?
How to produce and how much to
produce of these goods and services?
For whom to produce these goods
and services?
WHAT ARE THE
BASIC
ECONOMIC
PROBLEMS IN
THE
SITUATION ANALYSIS
You are a fresh graduate at a prestigious
university. You graduated as summa cum
laude and received numerous recognition
awards. You took up an education course
in order to become a teacher, however,
after graduating, you could not find
available jobs within the province. What
economic problem is present and is
affecting you here?
UNEMPLOYMENT
Unemployment refers to a situation where
a person actively searches for
employment but is unable to find work.
Unemployment is considered to be a key
measure of the health of the economy. The
most frequently used measure of
unemployment is the unemployment rate.
It’s calculated by dividing the number of
unemployed people by the number of
people in the labor force.
According to Labor and Statistics
Unemployment Rate in Philippines
increased to 3.90 percent in October
from 3.70 percent in September of
2024. Unemployment Rate in
Philippines averaged 7.90 percent
from 1986 until 2024, reaching an all-
time high of 17.60 percent in June of
2020 and a record low of 3.10 percent
in December of 2023.
SITUATION ANALYSIS
You are a newly-registered nurse. You
wanted to immediately find a job to save
enough money for your sick father’s
hospitalization. There is no other
available job opportunity in the area
except for an immediate hiring for
customer service representatives. You
got the job and you’re now a contact
center agent. What economic problem is
UNDEREMPLOYMENT
Underemployment is a situation
where a person is employed but
their job doesn’t fully use their
skills, they are paid too little, or
they work fewer hours than they
want. It’s different from
unemployment, which is when
One underemployment example is
when a holder of a BA degree in
literature works as a waiter. In this
case, the individual works in a low-
paying, low-skill job despite his
impressive educational
background. Another example is
when an engineering graduate
works as a pizza delivery
SITUATION ANALYSIS
Suppose that you, being the eldest
of ten siblings were not able to finish
your studies. You were forced to stop
going to school at the age of 13 and
find a job at an early age in order to
support your siblings. What
economic problem can be seen here?
OVER POPULATION,
POVERTY
The booming population growth in the
Philippines is another basic economic
problem that can be connected to the issue
of scarcity. When population becomes too
big, economic resources may no longer be
enough to support the increasing number of
people. Food, water, shelter, medicine and
other resources wouldn’t be enough to
satisfy every people’s needs and wants.
Intergenerational Poverty: This
scenario can contribute to a cycle
of poverty, where the lack of
education and economic stability
affects not only the current
generation but also future
generations, as the younger
siblings may face similar
HOW ECONOMIST
FACE ECONOMIC
PROBLEMS?
UNDERSTANDING KEY
ECONOMIC CHALLENGES IN
THE PHILIPPINES
High Unemployment
High Inflation
Rising Policy Rates
Foreign and Domestic Direct
investments
HOW ECONOMISTS CAN
ADDRESS THESE
CHALLENGES?
 Analyzing the Root Causes
 Developing Policy Recommendations:
- Promoting Job Creation
- Controlling Inflation
- Attracting Foreign and Domestic Investments
 Communicating Effectively
 Collaborating with Stakeholders
THE ROLE OF
GOVERNMENT AND
THE PRIVATE
SECTOR

Common questions

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Unemployment negatively impacts economic growth by reducing the consumption power of individuals, leading to lower demand for goods and services, which in turn depresses production and investment activities. A high unemployment rate indicates unutilized labor resources, which could otherwise contribute to economic productivity. Additionally, unemployment can lead to social issues and increased government expenditure on social welfare programs .

The government can enhance job creation by implementing policies that support business development and entrepreneurship, providing tax incentives and financial support to emerging sectors, and investing in infrastructure projects that generate employment. Additionally, developing vocational training programs and partnerships with the private sector can ensure that the workforce possesses skills that meet market demands. Encouraging foreign direct investment and fostering an environment conducive to innovation and technological advancement are also critical measures .

Population growth exacerbates poverty by increasing the demand for limited economic resources. As the population grows, resources like food, water, and shelter may become insufficient, leading to scarcity and competition. A large population also stresses educational and healthcare systems, making it difficult to achieve widespread economic stability. This strain can perpetuate cycles of poverty as shortages in resources affect both current and future generations, limiting opportunities for economic advancement and societal development .

The principle of scarcity is central to the economic problems in the Philippines as it underlies the challenges of resource allocation amid growing demands from a rising population. Scarcity contributes to issues like inadequate access to basic needs such as food, shelter, and healthcare. This shortage can lead to increased competition for resources, higher prices, and economic inequalities. Addressing scarcity involves efficient resource management and creating sustainable growth avenues to meet the needs of an expanding population .

Intergenerational poverty refers to the situation where poverty is transmitted from one generation to another, often due to a lack of access to education and economic opportunities. This cycle perpetuates economic instability as children from impoverished families are likely to face similar challenges as their parents, limiting their potential to contribute productively to the economy. For the Philippines, breaking this cycle is crucial for achieving long-term economic stability and growth, as it requires targeted interventions that improve access to education and economic resources across generations .

Attracting foreign and domestic investments can have a significant positive impact on the Philippine economy by creating jobs, fostering technology transfer, and stimulating economic growth. It promotes infrastructure development and increases productivity by introducing new skills and innovation. Investments can also strengthen local industries by integrating them into global supply chains, enhancing competitiveness. However, to be sustainable, these investments should align with national priorities and be accompanied by policies that address labor rights and environmental concerns .

The situation highlights the problem of underemployment, where an individual's skills and qualifications are not fully utilized in their current job role. This indicates a mismatch in the labor market where there is an oversupply of specific qualified professionals relative to the available job opportunities in those fields. It reflects inefficiencies in education-to-employment pathways and suggests a need for policy intervention to better align educational outcomes with labor market demands .

Controlling inflation helps maintain the purchasing power of consumers, which is crucial for sustaining economic demand. Stable prices bolster consumer and business confidence, encouraging spending and investment, which are vital for economic growth. Additionally, low inflation rates can make a country more attractive for foreign investment by ensuring predictable returns. Together, these factors help stabilize the economy, reduce uncertainty, and support job creation, mitigating some of the key economic challenges faced by the Philippines .

Underemployment differs from unemployment as it refers to situations where individuals work in jobs that do not fully utilize their skills, offer inadequate pay, or do not provide desired working hours, whereas unemployment is the lack of employment altogether. This discrepancy leads to workers being less motivated and less productive and highlights inefficiencies in skill utilization within the economy. Underemployment may not affect the unemployment rate but still indicates a misalignment of job opportunities with the available skilled workforce .

Economists address high unemployment through several strategies: analyzing root causes to understand underlying issues, developing policy recommendations like promoting job creation through incentives for businesses, and fostering skill development programs to align workforce skills with market demands. Other strategies include controlling inflation to stabilize the economic environment and attracting both foreign and domestic investments to create new job opportunities. Effective communication and collaboration with stakeholders are essential to implementing these solutions successfully .

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