The Implications of Educational Attainment To The Unemployment Rate Through Period of Time in The Philippines
The Implications of Educational Attainment To The Unemployment Rate Through Period of Time in The Philippines
The Implications of Educational Attainment To The Unemployment Rate Through Period of Time in The Philippines
Rapera, Angelica G.
Recato, Stephanie
Sacil,Jem Carla M.
January, 2020
TABLE OF CONTENTS
Title page....................................................................................................i
Table of contents.........................................................................................ii
Introduction.........................................................................................1
Background of the study........................................................................2
Conceptual Framework..........................................................................3
Scope and Limitation.............................................................................4
Significance of the study........................................................................5
Definition of Terms................................................................................6
Review of Related Literature and Studies.....................................................7-18
Introduction
Through ages, Filipinos, were able to learn reading and writing at home, taught by
parents as they grow old. After that, the learning process continued as they were entered
through the schooling process, the notably K - 12 process. Through this kind of schooling in
the Philippines, the basic learning would now be enhanced and advanced learning would
now be taught to students.
Education became everyone's hope to have a better life. People think that with
education, people would be lifted by the deadly grasp of poverty. Poverty, on the other
hand, was also a main factor to most Filipinos to thrive hard and survive everyday living.
That was the reason why all Filipino parents pushed their children to enroll and be educated
at institutions and to graduate with degrees.
Oftentimes, parents believed that with proper education would gradually had higher
possibility of quality life in the future. Evidently, it was true. With that being said, parents
would rather choose to spend their money on notable and prestigious schools to let their
children be educated with a quality learning environment.
Though, sometimes, the quality of education that we thought would be the basis of
everything would something had depending results. A lot of people was not able to graduate
with degree yet they were seen and notable in an industry they were into. Also, notable
people nowadays were also made into the lime light not just because of where they came
from but how much the things they were able to accomplish. Further than that, just after an
individual graduated from a course that they were able to take in their undergraduate days,
the chances of getting employed was higher rather than those who did not attend college.
The rate of unemployment in the Philippines was really dependent since most of
Filipinos tend to work not in their localities but mostly spend their time working in other
countries. The real question would be how the educational attainment of an individual would
affect the rate of unemployment.
1
Background of the Study
The educational attainment became somehow a factor that affecting the inclinations
of the unemployment rate. The problem started to make a major impact in our economy
today. Since there are people who are now bystanders and unemployed, the researchers
were given an idea about the crisis that started to rise in the economy. It was a major
problem that may lead to gradual increase of poverty.
The study would focus more on the possible implications of educational attainment
inclined to the increase or decrease of rate of unemployment through period of time, in
specifically the Philippines.
2
Conceptual Framework
This research study will be tackling about the implications of educational attainment
to the rate of unemployment through period of time. It is shown that the educational
attainment as the dependent variable and the rate of unemployment as the independent
variable.
3
Scope and Limitations
This study would cover the analysis of unemployment rate through period of time.
This study would focus in the statistical data present in the era of the Philippines.
4
Significance of the Study
The researchers conducted this entire study about the implications of educational
attainment to the rate of unemployment.
For the students, for them to know how education affect their future as an individual
or even as a citizen of the country.
For the Parents, for them to guide their children properly in accordance to these
events happening and provide guidance as their children make their own path into adult life.
For the Community, so that they would be aware of the rates and what was really
happening in our society. In which they would be able to come up with a possible solution
for the problem arising.
For the Future Researchers, for them to be provided by useful information for their
research purposes.
5
Definition of Terms
Poverty is a state or condition in which a person or community lacks the financial resources
and essentials for a minimum standard of living.
6
REVIEW OF RELATED LITERATURE AND STUDIES
With the increasing complexity and industrialization of society, work for many people
has become more and more simply a means toward the end of earning a living (Morse, N.,
& Weiss, R. (1955). Especially in a place where extreme poverty exists, the Philippines, the
only door to a way out is to be employed and earn for the living. But to be able to work is
another story as unemployment continues foster throughout the years. Thousands of new
graduates every year find it hard to land a job while some who have already graduated
years ago are still looking for one (PinoyMoneyTalk.com). Even so, the government had the
grasp eventually as the Figure 1 shows how unemployment rate reach its peak with 14.40%
during 1991, and its abyss with 4.50% recently this 2019, showing a progress. In
comparison with our Asia-Pacific neighbors, Malaysia has 3.4 percent during March 2019,
5.34 percent in Indonesia during August 2018, 1 percent in Thailand during April 2019, and
2.1 percent in Singapore during September 2018. In South Korea, it was 4.4 percent during
January 2019, Taiwan, 3.73 percent during April 2019, China, 3.83 percent during June
2018 and Vietnam, 3.10 percent during January 2019 (pinoy-ofw.com, 2019).
The Philippines may have the highest unemployment rate in Southeast Asia, but its
employment data is still better compared to the percentages of African and even most
European countries (PinoyMoneyTalk.com)
Figure 1
7
Unemployment, as defined by the International Labor Organization, refers to the
scenario when citizens are out of jobs but have been actively looking for work during the
past month. It is one of the major indicators of an economy’s health status as it measures
productivity, as well as the effects of economic events such as recession (Connolly, 2013).
Unemployment also affects many aspects of the economy, so knowing the root cause of
unemployment will help the country's government to act quickly in response to fluctuations
in unemployment may be able to blunt the effects of an economic downturn or maximize
the positives of an improving economy (paperap.com, 2019). Though it cannot only
downplay economic costs, but also the non-economic costs such as adverse effect on
health, strained family relations, rise in cases of alcohol and substance abuse, higher suicide
and crime rates, and negative impact on human capital will befall (Mapa and De Jesus,
2016). On the other hand, according to pinoy-ofw.com (2019), the causes or factors that
can affect to a growth for unemployment rate are:
8
to the Professional Regulations Commission, licensure exam results of several
professions have less than 50% passing mark as of 2016.
Accountancy – 38%
Criminology – 29%
LET Elementary – 29%
LET Secondary – 34%
Radiologic Technology – 42%
Although experience is the best teacher, and it’s more about adapting
and learning while performing the job, many applicants don’t immediately get
the chance to prove themselves beyond their board exam track record (and
their school’s reputation). As a result, they end up taking up unrelated jobs or
remain unemployed.
c. Outdated school curriculum
Emerging technologies have created new set of careers — from
artificial intelligence to nanotechnology. However, the Philippine education
system is slow to adopt and continue to include subjects that are close to
being obsolete, depriving students to be at par with the industry trends.
Although there are universities that manage to innovate, there is a big
challenge among many others to do so. Lack of qualified teachers, facilities
and academic resources remain as the biggest roadblock for them to advance
forward.
No wonder that some companies have ditched the college degree as a
prerequisite to employment.
d. Lack of skills and experience
Due to lack of related skills and experience, jobless workers or fresh
graduates are unable to take on careers that are available in the job market.
Some would think it’s unimaginable to take a job that’s too unrelated to the
course he/she finished in college. Some job postings require substantial
amount of experience, and fresh graduates, therefore, are left out of
contention.
With little or no entrepreneurial skills, many job hunters are unable or
unwilling to establish their own business as an alternative to being employed.
e. Lack of understanding about job application
9
It’s hard, if not impossible, to land a job if an applicant doesn’t even
know where to start. Even if they’re looking at a job description, some of
them are unable to figure out how to fill up a form, how to use e-mail service
or find the address of the recruitment agency. A few would leave comments in
a news article expressing their interest. Anyone wants to see more proof?
Have a look at the comments of a past article about gas station attendant
jobs in Dubai.
f. Discrimination and unreasonable job requirements
In the Philippines, a simple job vacancy gets way too many applicants.
As a way to pre-qualify applicants (or discourage those that are not fit),
employers have set requirements that are otherwise discriminatory and
unreasonable. Take a look at a typical job posting for a cashier job vacancy in
Manila.
To become a cashier, one has to have height and age requirements,
and as a hygiene-conscious country, such requirement is also disclosed up
front. Instead of relying on experience and skills, many Filipino employers
rely on looks, age and other unnecessary requirements (at least for a cashier
job). Customers need to pay you even if you don’t look very pretty; is the
cashier chair too high that a certain height must be reached? Maybe these
companies can’t pay that much, so they only take fresh graduates who may
accept lower than minimum salary rate.
g. Poverty cycle
In 2015, poverty rate in the Philippines stood at 21%. Poverty can be
a direct or indirect contributor to unemployment. Families under this category
cannot send their children to school, and ask them to contribute to the family
by entering the job market early. Such jobs — construction assistants,
household helpers, and other lowly-paid employment — can be detrimental to
their future career development. Without educational background, their
prospects for decent jobs are low.
The government provides programs for education among the lower-
income members of the community. However, these are limited and many are
left out to fend for themselves. The cycle continues soon as they start their
own family, as their children are at risk of following their footsteps of poverty.
h. Rapid population growth
10
As of 2017 the Philippines is home to 104.9 million Filipinos, a number
that is forecast to increase to 145 million in 2045. Growth is expected even
with the projected slowing down in average annual population growth rate,
from 1.73 percent during 2010-2015 to 0.65 percent during 2040-2045.
The pace at which jobs are created simply cannot cope up with steady supply
of graduates many of whom will find themselves unemployed.
Education has long been linked to economic growth and has consistently been shown
to be positively correlated with Gross Domestic Product (GDP), population, and income
(Monroe, 2008). Edward Glaeser and Jesse Shapiro (2001) note that “The level of residents’
education and income are consistent predictors of urban growth”. They also acknowledge
that the tendency of skilled communities to experience growth “has been true for every time
period going back to the late 19th century”. So it is not odd to consider that one cause of
unemployment in the Philippines may be lack of quality education. With the increasing
demands of the fast developing world, it is really hard to find jobs when an individual is not
a graduate of a particular skill or profession (Paperap.com, 2013). Though the Philippines is
a literate country, the country has literacy rate of 95. 4% for the total population which
means ages 15 and over can read and write (Central Intelligence Agency, 2013). However,
according to Paperap.com (2013), that is not enough to be able to reach the qualifications
of most in-demand jobs because even mere sales ladies nowadays are required to have at
least 1-2 years in college education. In addition, a high educational attainment, which most
Filipinos lack, is one way to uplift the unemployment rate of the country.
11
Unemployment Composition (Educational Attainment)
No Grade Completed Elementary Undergraduate
Elementary Graduate Junior High School Undergraduate
Junior High School Graduate Senior High School Undergraduate
Senior High School Graduate Post-secondary Undergraduate
Post-secondary Graduate College Undergraduate
College Graduate
1% 7%
21%
9%
11%
8%
8%
3%
3% 28%
1%
Figure 2
Source: National Statistics Office
Figure 2 shows that most of the unemployed in the Philippines by educational
attainment: 28% were junior high school graduates, 21% were college graduate, 11% were
junior high school undergraduate, 9% were elementary graduate, 8% were college
undergraduate and post-secondary graduate, 7% were elementary undergraduate, 3% were
senior high school graduate and post-secondary graduate, and 1% were senior high school
undergraduate and no grade completed.
Education is one of the most important in the Philippines. Without education, there
can no eligible leaders to fill in government offices, and other organizations that are vital in
sustaining life, progress, and belief in the country's capabilities. Education in the Philippines
fares poorly compared with other countries in the region (expatarrivals.com). According to
12
imbalife.com (2018), the key issues and problems in Philippine education which need
further debate and depth analysis as well as immediate resolution include the following:
There are multiple factors which have led to low educational standards. Studies and
fact-finding commissions have shown that the deteriorating quality of education is
due to the low government budget for education; poor quality of teachers; poor
management of schools; poor school facilities such as laboratory and library
facilities; poor learning environment; the content of the curriculum; inadequate
books and science equipment; the poor method of instruction; shortages of
classrooms; and others.
The shortages of classrooms and textbooks are particularly severe. The nationwide
classroom shortage is estimated to be 40,000 and the DECS (now DepEd) operates
two shifts in many schools. The textbook problem is even more serious. A survey
done in preparation for a World Bank education loan found that the pupil-textbook
13
ration in the public elementary schools is 10:1 and 79% of the textbooks are more
than 5 years old. This situation has persisted for many years.
Other teaching tools, such as science materials, teaching devices and audio-visual
aids, are also in short supply. Perennial graft and corruption in the acquisition of
books and in the construction of school buildings has often been reported. This
situation handicaps the teaching staff in their work.
The fact that teachers are paid subsistence wages is only half of their sad story.
Their daily bout with dilapidated classrooms, overcrowded classes, and lack of
teaching materials, among others, make the teachers hardly rewarded work even
more difficult.
14
Mathematics and the natural sciences continue to be taught in English. Despite the
findings of the Ateneo Social Weather Survey that 92% of Filipinos already speak and
understand Tagalog, many provinces north and south of Metro Manila still encounter
problems with the language. This is unfortunate because Pilipino is used in nationally
conducted exams and tests. While the bilingual policy is a law which not even the
Secretary of Education can change, it has become a growing concern that many
students are deficient in communication skills.
6. Mismatch
The major problem of the tertiary level is the large proportion of the so called
“mismatch” between training and actual jobs, as well as the existence of a large
group of educated unemployed or underemployed. The literature points out that this
could be the result of a rational response to a dual labor market where one sector is
import-substituting and highly-protected with low wages. Graduates may choose to
“wait it out” until a job opportunity in the high paying sector comes.
To address this problem, it is suggested that leaders in business and industry should
be actively involved in higher education. Furthermore, a selective admission policy
should be carried out; that is, mechanisms should be installed to reduce enrolment in
oversubscribed programs and promote enrolment in undersubscribed ones.
15
consortium of transnational banks, called the Paris Club, supervised by the WB. The
structural adjustments as basis for the grants of loans, basically require
liberalization, deregulation and privatization in a recipient country.
The WB-IMF and the Ford Foundation have earmarked $400M for Philippine
education. These loans financed the Educational Development Project (EDPITAF) in
1972; the Presidential Commission to Survey Philippine Education (PCSPE) in 1969;
the Program for Decentralized Educational Development (PRODED) in 1981-1989. As
pointed out by many critics, “the massive penetration of WB-IMF loans into the
Philippine Educational System has opened it wide to official and systematic foreign
control, the perpetuation of US and other foreign economic interest, and to maximize
the efficiency of exploiting Philippine natural resources and skilled labor.”
A number of studies and fact-finding commissions such as the Sibayan and Gonzales
Evaluation (1988), the Presidential Commission to Survey Philippine Education
(PCSPE, 1969), and the Congressional Commission on Education (EDCOM, 1991-
1992) have pointed out that the problems of Philippine education are the problems of
quality and political will.
16
countries. The Philippines couldn't move to a more knowledge-based economy without its
citizens attaining all the basic needs to survive in the real and global competition.
The unemployed are defined as people actively seeking employment and currently
available to start work. However, as the years go by many companies have minimum
educational requirements, and without meeting these requirements, you won't get an
interview. According to studies, employers are increasingly requiring a college degree and
estimates that by 2018, 60 percent of jobs required a bachelor's degree. Time spent in high
school, college or graduate school helps you master both basic and advanced skills like
writing, reading, comprehension and communication skills. These social skills can serve you
well in the job search even if the job you want doesn't require a specific degree. High
quality education will enhance the quality of its human resources. The high and low quality
of human resources can be determined from the knowledge and skills they have. Good
knowledge and skills are usually obtained from education when they go to school. Each level
of school education plays a role in providing learning experiences that can increase student
interest (Rina, Murtini & Indriayu, 2018).
In 2016, the Philippine government implemented the K-12 education policy in the
country, adding two more years of schooling in the high school level. This implies an
improvement in the education system brought about by an increase in the years of
schooling. However, this also implies an increase in the cost of education. In the Philippines,
Luo and Terada (2009) report that Filipinos with a higher level of educational attainment
face a considerably higher unemployment rate than those with a lower level of education
attainment. They attribute 30 percent of the differences in wages across the country to
education – highlighting that education is a determinant of wage inequality. An earlier study
by Paqueo and Tan (1989) also highlights the role of education. They find that an additional
year of education leads to an increase in private returns by 8.1 percent. Schady (2002) also
finds similar results for the male population: even if costs to acquiring a college education
are very high, the highest returns are also experienced by those who complete a college
degree.
In terms of educational outcomes, the Philippines is regionally successful but has yet
to reach the standards of more developed countries. Educational attainment of the Filipino
17
population has steadily increased in recent decades (ILO, 2012). A survey undertaken by
the Department of Labour and Employment (DOLE) has shown that in 2012, 36% of firms
considered that the lack of pertinent skills was the main reason why they found it hard to fill
vacancies (PSA, 2016). Similarly, according to data from the World Bank Enterprise Survey,
10.1% of private sector firms identified an inadequately educated workforce as a major
constraint for growth in 2015, up from 7.8% in 2009 (World Bank, 2015). Results from this
survey also show that socio-behavioural skills, such as managerial, leadership, interpersonal
and communication skills, are those that firms consider to be more difficult to find in
potential employees.
To raise the quality of the workforce, the Report and Recommendations advocated
several measures (Congress of the Philippines, 2001), including increasing investments in
quality basic education; targeting public investments in higher education and advanced
scientific and technical research; reducing public subsidies to state universities and colleges
via phase down or devolution to local government units or the private sector; expanding
opportunities for education through well-designed educational loan programmes for qualified
students from low-income families; strengthening co-ordination between the public and
private sectors in providing vocational and technical training to ensure better match of skills
with industry demand and to remove costly duplication of government- and privately-
provided training; and devolving vocational and technical training to local government units
and the private sector to enable TESDA to concentrate on skills certification, standard
setting and equivalency, timely development of training curricula, and the building of
partnerships between training centres and industry. The Philippine Constitution mandates
the State to promote full employment and equal employment opportunities, raise the
standard of living, and improve quality of life for all.
18
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
The research paper, “Causes of Unemployment in Tondo Manila and Caloocan City”
of Colegio, Cruz, Meneses, and Pepito, studied and analyzed the comparative study of
increasing rate of unemployment of two barangays in Tondo Manila and Caloocan City. It
also shows the reason of unemployment of each barangay which illustrates their difference
not just in the rate of unemployment but also in their standard of living. The findings are:
EMPLOYMENT
STATUS FREQUENCY PERCENT
EMPLOYED 26 52%
UNEMPLOYED 24 48%
26
25.5
25 FREQUENCY
24.5
24
23.5
23
EMPLOYED UNEMPLOYED
Figure 3
19
Figure 3 shows the frequency according to the employment status of the
respondents. 26 out of 50 or 52% are employed, 24 out of 50 or 48% are unemployed.
50 Respondents
EMPLOYMENT STATUS
EMPLOYMENT
STATUS FREQUENCY PERCENT
EMPLOYED 20 26%
UNEMPLOYED 30 74%
30
25
20 FREQUENCY
15
10
0
EMPLOYED UNEMPLOYED
Figure 3
20
50 Respondents
EDUCATIONAL ATTAINMENT
EDUCATIONAL FREQUENCY PERCENT
ATTAINMENT
ELEMENTARY 7 14%
GRADUATE
HIGH SCHOOL 6 12%
GRADUATE
HIGH SCHOOL 5 10%
UNDERGRADUATE
COLLEGE GRADUATE 23 46%
COLLEGE 9 18%
UNDERGRADUATE
Figure 4
This table shows the frequency distribution of the residents of Barangay 131 PagAsa
St. Caloocan City. 23 out of 50 or 46% belongs to bracket College Graduate,9 out of 50 or
18% belongs to College Undergraduate, 7 out of 50 or 14% belongs to Elementary
Graduate, 6 out of 50 or 12% belongs to High School Graduate, 5 out of 50 or 10% belongs
to High School Undergraduate.
21
VALID FREQUENCY PERCENT
ELEMENTARY 3 6%
GRADUATE
HIGH SCHOOL 11 22%
GRADUATE
HIGH SCHOOL 8 16%
UNDERGRADUATE
COLLEGE GRADUATE 14 28%
COLLEGE 14 28%
UNDERGRADUATE
Figure 4
This table shows the frequency distribution of the residents of Barangay 181 PagAsa
St. Tondo Manila. 14 out of 50 or 28% belongs to bracket College Graduate, 14 out of 50
or 28% belongs to College Undergraduate, 11 out of 50 or 22% belongs to High School
Graduate, 8 out of 50 or 16% belongs to High School Undergraduate. 3 out of 50 or 6%
belongs to Elementary Graduate.
Their findings also shows that educational qualifications is the primary factor of
increasing rate of unemployment in both barangay which have tallied 72% in Barangay 131
Pag-asa Caloocan City and 80% in Barangay 181 Pag-asa Tondo Manila. While other are
family, and environment. The interpreted findings are as follows:
22
ENVIRONMENT FREQUENCY PERCENT
YES 4 16%
NO 21 84%
FIGURE 5
This table shows the frequency distribution of the residents of Barangay 181 Pag-asa
St, Caloocan City. 21 out of 25 or 84% answered No that environment does not affect the
status of unemployed citizen.
YES 18 60%
NO 12 40%
FIGURE 5
This table shows the frequency distribution of the residents’ of Barangay 181 Pag-asa
St Gagalangin, Tondo, Manila. 18 out of 30 or 60% answered Yes that environment can
affect the status of unemployed citizen.
YES 7 28%
NO 18 72%
FIGURE 6
This table shows the frequency distribution of the residents of Barangay 181 Pag-asa
St., Caloocan City. 18 out of 25 or 72% answered No that the size of the family affects
status of unemployed citizen.
23
FAMILY FREQUENCY PERCENT
YES 15 50%
NO 15 50%
FIGURE 6
This table shows the frequency distribution of the residents of Barangay 181 Pag-asa
St Gagalangin, Tondo, Manila. 15 or 50% by No and 15 or 50% of answered by yes.
EDUCATIONAL
ATTAINMENT FREQUENCY PERCENT
YES 18 72%
NO 7 28%
FIGURE 7
This table shows the frequency distribution of the residents of Barangay 181 Pag-asa
St. Caloocan City. 18 out of 25 or 72% answered yes that the educational attainment
affects status of unemployed citizen.
EDUCATIONAL
ATTAINMENT FREQUENCY PERCENT
YES 24 80%
NO 6 20%
FIGURE 7
This table shows the frequency distribution of the residents of Barangay 181 Pag-asa
St. Gagalangin, Tondo, Manila. 24 out of 30 or 80% answered yes that the educational
attainment affects status of unemployed citizen.
24
Barangay 131 Pag-asa Caloocan City
FREQUENCY
FACTORS MEAN
YES NO
ENVIRONMENT 4 21 2.52
FAMILY 7 18 2.16
EDUCATIONAL
ATTAINMENT 18 7 2.16
FREQUENCY
FACTORS MEAN
YES NO
ENVIRONMENT 18 12 1.8
FAMILY 15 15 1.5
EDUCATIONAL
ATTAINMENT 24 6 2.4
25
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary of findings
Employment status
Educational attainment
26
Educational affects status of unemployment citizen
27
Conclusion
28
Recommendation
The researchers conducted this entire study about the implications of educational
attainment to the rate of unemployment. This research study is ought to be recommended
to the following:
Students, in which they will be equipped with new learning related to this
phenomena evident in the country.
Parents, in which they will be knowledgeable about the crisis arising and will be able
to properly guide their children for their own future benefit.
Community, in which they will be able learn and cope up for possible movements
regarding the said problem and take action for the problem to be resolved.
To the Future Researchers, in which they will be able to give necessary data for their
research and also be equipped with a handful of information to use.
29
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Congress of the Philippines (2001), “Human Capital in the Emerging Economy, Report
and Recommendations of the Congressional Commission on Labour”,
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Glaeser, E., & Shapiro, J. (2001, May). City growth and the 2000 census: Which places
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https://www.imbalife.com/7-key-issues-and-problems-of-philippine-education
https://www.expatarrivals.com/asia-pacific/philippines/education-and-schools-philippines
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