Possible solutions to Unemployment in the Philippines
We will firstly look at some common solutions to unemployment. Then, we'll see whether they can be applied to Philippines and more.
Common Solutions to Unemployment
Reducing Occupational Immobility
Labour resources are usually occupationally immobile because it takes time for people to gain the sufficient skills that are necessary for working in a certain industry. Hence, when there is oversupply of labour in a certain industry or when there is a recession, people who become unemployed cannot find work immediately or easily since they cannot be employed in the industry that requires their skills and also cannot work in other industries since they may not have sufficient skills. Hence, the government can provide retraining programmes for the unemployed, so that they can improve their skills or gain new skills necessary to ensure their employment.
Labour resources are usually occupationally immobile because it takes time for people to gain the sufficient skills that are necessary for working in a certain industry. Hence, when there is oversupply of labour in a certain industry or when there is a recession, people who become unemployed cannot find work immediately or easily since they cannot be employed in the industry that requires their skills and also cannot work in other industries since they may not have sufficient skills. Hence, the government can provide retraining programmes for the unemployed, so that they can improve their skills or gain new skills necessary to ensure their employment.
Employment Subsidies
Employment subsidies can be provided by the government for firms who hire workers that are unemployed. With a subsidy, costs of production for firms go down since the price of each unit of labour resource decreases. Hence, employers will be more willing and able to hire more workers and increase the number of workers that they are willing to hire. This increases the size of the workforce and the number of job vacancies, hence helping to reduce unemployment. However, it is difficult for governments to determine how much subsidy to provide and it is difficult to ensure that firms are willing to retain the increased size of their workforce when there are changes in the economy (eg. Recession)
Employment subsidies can be provided by the government for firms who hire workers that are unemployed. With a subsidy, costs of production for firms go down since the price of each unit of labour resource decreases. Hence, employers will be more willing and able to hire more workers and increase the number of workers that they are willing to hire. This increases the size of the workforce and the number of job vacancies, hence helping to reduce unemployment. However, it is difficult for governments to determine how much subsidy to provide and it is difficult to ensure that firms are willing to retain the increased size of their workforce when there are changes in the economy (eg. Recession)
Sustained Economic Growth
Having sustained economic growth is another way for the government to address the problem of unemployment. When there is economic growth, employers will be more willing and able to employ more workers. This helps to address the issue of unemployment. However, this is a long term strategy that takes a lot of time to see results.
Having sustained economic growth is another way for the government to address the problem of unemployment. When there is economic growth, employers will be more willing and able to employ more workers. This helps to address the issue of unemployment. However, this is a long term strategy that takes a lot of time to see results.
Solutions to Unemployment in the Philippines
Having seen some of the common solutions to unemployment, let's see how these solutions and more can be applied to the Philippines.
Reducing Occupational Immobility
Reducing occupational immobility is one possible solution that can be applied to the Philippines. There is an oversupply of workers and a good amount of graduates every year who fall into unemployment. By enlisting them in retraining courses, they can gain new skills that are necessary to garner them a place in the workforce.
Reducing occupational immobility is one possible solution that can be applied to the Philippines. There is an oversupply of workers and a good amount of graduates every year who fall into unemployment. By enlisting them in retraining courses, they can gain new skills that are necessary to garner them a place in the workforce.
Employment Subsidies
Subsidizing employers that employ unemployed workers can help address the problem of unemployment in the Philippines. However, this method can place a strain on the government budget, depending on how much subsidies the government provides
Of the one million college graduates annually, only five to ten percent are employed in jobs consistent to their course, only 30 to 40 percent will find any employment. The vast majority of graduates will remain unemployed.
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