AP EXAM | LESSON 3

Poverty in the Philippines

A condition where individuals or families cannot afford basic needs like food, shelter, and clothing.

Basic needs families in poverty struggle to afford

Food, shelter, and clothing.

Main causes of poverty in the Philippines

Corruption, unemployment, overpopulation, and low education.

Lack of quality education's effect on poverty

It limits access to better jobs and higher income.

Indicators of poverty

Hunger, malnutrition, low income, and poor living conditions.

Food insecurity

The condition when families skip meals because they cannot afford food.

Effects of poverty on families

Malnutrition, poor education, and higher crime rates.

Labor

The human effort used to produce goods and services.

What do workers receive in exchange for their labor?

Wages or salaries.

When does the economy run most efficiently?

When labor is fully utilized.

Types of labor

Skilled, semi-skilled, and unskilled labor.

Unskilled labor

Work requiring no special training or experience.

Semi-skilled labor

Work requiring some training or experience but not full specialization.

Skilled labor

Work requiring specialized training and education.

Wage employees

Workers paid a fixed amount per day or month.

Contract labor

Workers hired for a limited period under an agreement.

Philippine labor force

The total number of employed and unemployed persons aged 15 and above.

Exclusion from the labor force

Students, housewives, retirees, and disabled persons not seeking work.

Employed persons

Individuals engaged in any form of paid work.

Labor Force Survey (LFS)

Counts people at work, not the number of jobs.

Are OFWs part of the Philippine labor force?

No, they belong to the foreign labor force.

Contractualization or ENDO

The short-term hiring of employees, often for less than six months.

Reasons companies practice ENDO

To avoid giving regular benefits and reduce costs.

Who are most affected by ENDO?

Low-income workers and fresh graduates.

Is contractualization legal?

It is legal under certain conditions stated in Articles 106–109 of the Labor Code.

Right to security of tenure

The right of an employee to keep their job unless removed for a just or authorized cause.

Just cause

A valid reason for termination due to the employee’s fault.

Authorized cause

A legal reason for dismissal such as redundancy or closure of business.

Purpose of the Anti-Contractualization Bill

To stop unfair labor-only contracting and promote regular employment.

Unemployment

The state where people are willing and able to work but cannot find a job.

What does unemployment measure?

The percentage of the labor force without jobs.

High unemployment rate indication

Poor economic performance.

Underemployment

When workers are employed but desire additional hours or better jobs.

Causes of underemployment

Low-quality jobs and lack of skills.

Effect of underemployment on college graduates

They work in jobs below their qualifications.

Migration

The movement of people from one place to another to live or work.

Positive effects of migration

Remittances, skill improvement, and global exposure.

Negative effects of migration

Family separation, brain drain, and emotional struggles.

Brain drain problem

The loss of skilled workers who migrate abroad.

How does brain drain affect the Philippines?

It reduces the number of skilled professionals available locally.

Social cost of migration

The emotional and family problems caused by separation due to migration.

Effects on children when parents work abroad

Emotional and behavioral effects on the family.