ECO 007: Economic Development

Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

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Lesson title: Unemployment and Underemployment Materials:

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Lesson Objectives: Student Activity Sheets
1. I can differentiate unemployment and underemployment. References:
2. I can properly identify different scenarios according to the type of Economics by Bello, Camacho,

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unemployment they belong. Catelo, Cuevas and Rodriguez.
2009 edition

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Investopedia

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Productivity Tip:
“A year from now you will wish you had started today.” – Karen Lamb
Don’t procrastinate – when given a task, if you have the time to do it, just do it.!

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A. LESSON PREVIEW/REVIEW
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1) Introduction (2 min)
Hello my dear student! I hope you read and appreciate our productivity tip for this day because this is related to
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our topic which is all about “Unemployment and Underemployment”. Years from now, you will also have your
dream job and I want you to remember this tip that if you can finish the task before the deadline, does it. This is
very powerful my dear student for you to become highly employable professionals.
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2) Activity 1: What I Know Chart (3 min)

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Direction: I know you have a lot of ideas about our topic for this day. For this part, I will post some
questions and I want you to write your answers on the first column “What I Know”. Are you ready?
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What I Know Questions: What I Learned (Activity 4)

1. What is the main difference
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between unemployment and

underemployment?
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2. What are the different types of

unemployment?

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 ECO 007: Economic Development
Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

B.MAIN LESSON

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1) Activity 2: Content Notes (13 min)

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Unemployment occurs when a
person who is a member of the labor

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force and is actively searching for
employment is unable to find work.

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What is Labor Force?
Labor force refers to people of a certain age (15 years and above in the case if the
Philippines) who are: (a) working or are engaged in business and (b) not working or engaged in
business but are actively looking for work. This means that unemployment does not include
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those people who are either too young, too old or are not looking for work.
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Types of Unemployment
1. Frictional 2. Cyclical 3. Structural 4. Institutional
Unemployment Unemployment Unemployment Unemployment
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It occurs as a result It is the variation in the It comes about It is unemployment that

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of people voluntarily number of through technological results from long-term

changing jobs within unemployed workers change in the or permanent
an economy. is a over the course of structure of the institutional factors and
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natural result of the economic upturns and economy in which incentives in the
fact that market downturns, such as labor markets operate. economy. Government
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processes take time those related to Technological policies, such as high

and information can changes in oil prices. changes—such as the minimum wage floors,
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be costly. Searching Unemployment rises replacement of horse- labor market

for a new job, during recessionary drawn transport by phenomena, such as
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recruiting new periods and declines automobiles or the efficiency wages and
workers, and during periods of automation of discriminatory hiring;
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matching the right economic growth. manufacturing—lead and labor market

workers to the right to unemployment institutions, such as
jobs all take time and among workers high rates of
effort, resulting in displaced from jobs unionization, can all
frictional that are no longer contribute to institutional
unemployment. needed. unemployment.

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 ECO 007: Economic Development
Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

Underemployment is a measure of

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employment and labor utilization in the

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economy that looks at how well the labor
force is being utilized in terms of skills,

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experience and availability to work.

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Types of Underemployment

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1. Visible Underemployment 2. Invisible Underemployment

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It is underemployment in which an individual It refers to the employment situation in which an
works fewer hours than is necessary for a full- individual is unable to find a job in their chosen
time job in their chosen field. Due to the field. Consequently, they work in a job that is not
reduced hours, they work two or more part-time commensurate with their skill set and, in most
jobs in order to make ends meet
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cases, pays much below their industry
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standards.
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FORMULA
Unemployment Rate (U) Underemployment Rate (UD)
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U = Unemployed members of the labor force x 100 UD = Unemployed members of the labor force x 100
Total Labor Force Total Labor Force
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*”U” refers to unemployment while “UD” refers to underemployment (This is for easy reference only)
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2) Activity 3: Skill-Building Activities (20 min)

Unemployment implies that productive resources are not being fully utilized in the economy. For this
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activity, I want to make this topic helpful for you in the near future instead of worrying that you will be
one of those millions of Filipino people who lost their jobs. For the first part, we will have a sample job
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interview to help you assess yourself on how you will become a highly employable professional
someday. Cheer up my dear student!
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Part 1 (10 min) On the Spot Interview: A Road to Become Highly Employable
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Direction: All you have to do is to be true to yourself. Just try to imagine that you are already a degree
holder who will now look for a job that will fit your knowledge and skills. One day, a highly reputable
company calls you for an interview. You prepared everything for that said interview. All is set. You will
now be interviewed by the company manager.
Interviewer (Manager) Interviewee (You)
Questions: Answers:
1. Why are you looking for a job?

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 ECO 007: Economic Development
Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

2. What are your professional strengths and

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weaknesses?

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3. What are your values which you think will help
you to become efficient and effective on the

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position you are applying for?

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4. Why should I hire you?

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Thank you for your time. You will receive an email Thank you!
or text message about the result of your initial
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interview.

Part 2 (10 min) Detect and Correct Activity

For this part, I want you to write down your opinions regarding the increasing unemployment rate in the
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Philippines. On the first column, you need to write the reasons behind the increasing unemployment
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rate and on the second column, you will indicate your proposed solutions. This activity is purely opinion
based only. There is no right or wrong answers.
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Reasons/Problems Proposed Solutions

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1. 1.
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2. 2.
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3. 3.

4. 4.

5. 5.

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 ECO 007: Economic Development
Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

3) Activity 4: What I Know Chart (2min)

Do you already have enough knowledge about unemployment and underemployment? I’m 100%

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confident you do because you are focus on your study. Go back to Activity 1 and write your answer on

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the third column.

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4) Activity 5: Check for Understanding (8min)
From the list below, classify each of the unemployed individuals as representing either (F)
frictional, (S) structural, (C) cyclical unemployment or (I) institutional unemployment. Indicate only the

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corresponding letter for your answer.

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_____1. Janice is an auto worker from Detroit who has been laid off because of the recent sharp

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decline in GDP, which has resulted in a severe decrease in auto sales.
_____ 2. Dennis, from western Kentucky, finds he can no longer get work in the coal mines because of
new automated mining techniques.

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_____ 3. Priscilla is unable to locate work after finishing her high school education and entering the
labor force.
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_____ 4. Anil, an aerospace engineer, finds himself unemployed because of large cutbacks in defense
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spending. Since our space program is also on a tight budget, Anil hasn’t been able to locate alternative
work for the past two months.
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_____ 5. Oscar, a skilled carpenter, has found himself out of work because of the housing slump
brought on by high interest rates and the recession.
_____ 6. Latoya quits her job as a salesperson out of frustration stemming from her lack of promotion.
She begins to look for a management position in a similar work setting.
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_____ 7. Pramilla reenters the labor force after having a child and is unable to locate suitable work.
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_____ 8. Stevenson, an airline pilot, suddenly finds himself laid off because of the dramatic decline in
the demand for air transportation caused by the recent recession.
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C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 min)
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A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.
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B. Think about your Learning

1. You deserve a round of applause! You completed your activity on time. How do you find our topic for
today? Are you able to hit our learning objectives? What tips can you give to fully understand our topic?
__________________________________________________________________________________
_________________________________________________________________________________

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 ECO 007: Economic Development
Student Activity Sheet Module #5

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

2. What question/s would you like to ask about the discussion of Unemployment?

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__________________________________________________________________________________
__________________________________________________________________________________

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FAQS

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1. What is the history of unemployment?
The U.S. government has tracked unemployment since the 1950s, but the highest rate to date occurred in

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1933, during the Great Depression, when unemployment rose to 24.9%.1 The rate of unemployment between

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1931 and 1940 remained above 14%, but subsequently dropped down to the single digits and remained there
until 1982, when it climbed above 10%. During the Great Recession unemployment again rose to 10% in

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2009.2 It remains to be seen what effect the 2020 coronavirus pandemic will have on unemployment. In March,
the Federal Reserve Bank of St. Louis projected that job losses could push the unemployment rate to 32.1%—
more than seven points higher than the peak hit during the Great Depression.

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KEY TO CORRECTIONS
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Activity 5: Check for Understanding

1. C
2. S
3. F
F

4. S
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5. C
6. F
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7. F
8. C
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Submit your activity sheets before the end of the session!