ST.

ALOYSIUS GONZAGA PAROCHIAL SCHOOL

GUINAYANGAN, QUEZON

Name:
Subject: APPLIED ECONOMICS
Grade Level and Section: Grade 12-FORTITUDE
Date:

Content
Module 4: ELASTICITIES OF DEMAND AND SUPPLY
 Supply-Demand and the Philippine Labor Market
 Labor Supply, Population Growth, and Wages
 Philippine Population
 The Philippine Wage Situation
 Labor Migration and the Overseas Filipino Workers

At the end of the lesson, the students should be able to:

1. Discuss why it is necessary for the government to impose taxes
2. Explain the concept of minimum wage
3. Relate population growth with the country’s labor supply and apply the law of demand and supply
in the determination of wages of labor;

HOOK
Our Father

In the name of the Father, and of the Son, and of the Holy Spirit

Our Father, who art in heaven……

ENGAGE
Last module we already discuss Elasticities of Demand and Supply and this week we are going to discuss the
Supply-Demand and the Philippine Labor Market for further information open your book on page 37-43.
Labor Supply, Population Growth, and Wages

The labor supply is the number of hours people are willing and able to supply at a given wage rate.

 It is the number of workers willing and able to work in a particular job or industry for a given wage
 So ang labor supply is yong willingness ng mga manggagawa na magtrabaho kapalit ng tamang pasahod o
yong tinatawag na minimum wage.

Key factors affecting labor supply

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 ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

1. The real wage rate on offer in the industry itself – higher wages raise the prospect of increased factor
rewards and should boost the number of people willing and able to work

 Kapag mas mataas ang minimum wage, na ibinibigay sa isang kompanya, mas malaki yong chance na
maraming mag-apply or maraming willing mag apply sa kompanya na ito.

2. Overtime: Opportunities to boost earnings come through overtime payments, productivity-related pay

schemes, and share option schemes

 Nakapaloob sa batas na may karampatang bayad kapag nag overtime ang isang manggagawa. Ang tamang
oras na dapat lamang magtrabaho ang isang manggagawa sa loob ng isang araw ay walong oras. Kaya
kapag ang isang manggagawa ay lumampas sa 8 oras ang trabaho, dapat na itong makatanggap ng
karagdagang sahod. But in public offices mostly walang overtime pay, ang overtime pay ay nakukuha ng
mga nasa pampribadong kompanya.

3. Substitute occupations: The real wage rate on offer in competing jobs affects the wage and earnings
differential that exists between two or more occupations. For example an increase in the earnings available to
trained plumbers and electricians may cause some people to switch their jobs

 Kapag mas mataas ang sahod sa isang trabaho nagiging reason ito para magpalit ng trabaho ang isang
manggagawa. Halimbawa ang mga guro na sumasahod ng 19,000 ay lilipat o mag aapply bilang bumbero,
dahil mas malaki ang sahod.

4. Barriers to entry: Artificial limits to an industry's labour supply (e.g. through the introduction of minimum
entry requirements) can restrict labour supply and force pay levels higher – this is the case in professions such
as legal services and medicine where there are strict "entry criteria"

 More or less may mga companies na may minimum requirement para makapasok ka sa kompanya nila.
Halimbawa ang mga Call center agent ay magaling magsalita ng English kaya kasama sa requirement nila
ang kelangang magaling magsalita ng English. Isa pang halimbawa ay sa government, kapag hindi ka
eligible o civil service passer, maaaring ka mag work ngunit sa contractual, casual worker ka lang. Kapag
license ka kasi o eligible ka malaki ang chance mo na ma regular sa trabaho mo.

5. Improvements in the occupational mobility of labor: For example if more people are trained with the
necessary skills required to work in a particular occupation.

 Kapag skilled worker ka malaki ang chance mo na maka entry o makapasok sa trabaho. Halimbawa ang
mga nagtapos ng TESDA at nakakuha ng Certificate o NCII ay mas malaki ang chance na makapag trabaho
dahil sa training na meron sila.

6. Non-monetary characteristics of specific jobs – include factors such as the risk with different jobs, the
requirement to work anti-social hours or the non-pecuniary benefits that certain jobs provide including job
security, working conditions, opportunities for promotion and the chance to live and work overseas,
employer-provided in-work training, employer-provided or subsidised health and leisure facilities and other in-
work benefits including occupational pension schemes.

 So kabilang dito halimbawa yong mga nagpupunta sa ibang-bansa. Halimbawa yong mga nurse dito sa
Pilipinas pumupunta sila sa ibang bansa, para mag trabaho bilang caregiver.

https://www.tutor2u.net/economics/reference/labour-market-supply-of-labourPhilippine Population

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 ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

Source: Worldometer (www.Worldometers.info)
Elaboration of data by United Nations, Department of Economic and Social Affairs, Population Division. World Population Prospects: The 2019 Revision.

 The current population of the Philippines is 109,941,915 as of Thursday, October 1, 2020, based on

Worldometer elaboration of the latest United Nations data.
 The Philippines 2020 population is estimated at 109,581,078 people at mid year according to UN data.
 The Philippines population is equivalent to 1.41% of the total world population.
 The Philippines ranks number 13 in the list of countries (and dependencies) by population.
 The population density in the Philippines is 368 per Km2 (952 people per mi2).
 The total land area is 298,170 Km2 (115,124 sq. miles)
 47.5 % of the population is urban (52,008,603 people in 2020)
 The median age in the Philippines is 25.7 years
Yong data sa taas is as of 2020 tapos itong nasa baba na 109, 941, 915 ay as of October 1, 2020 baka malito
kayo sa data ayon sa Worldometer.

The Philippine Wage Situation

Philippines Labour Last Previous Highest Lowest Unit

Unemployment Rate 10.00 17.70 17.70 4.50 percent [+]

Employed Persons 41,306.00 33,764.00 43146.34 18,567.00 Thousand [+]

Unemployed Persons 4,571.00 7254.00 7,254.00 1,720.00 Thousand [+]

Labor Force Participation Rate 61.94 55.64 71.50 55.64 percent [+]

Wages in Manufacturing 113.20 99.94 123.66 48.63 points [+]

Population 108.80 107.00 108.80 26.27 Million [+]

Minimum Wages 537.00 537.00 537.00 89.00 PHP/day [+]

Employment Rate 90.04 82.32 95.46 82.32 percent [+]

https://tradingeconomics.com/philippines/wages

Labor Migration and the Overseas Filipino Workers

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 ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

Globally, more people than ever seek better lives outside their home countries. There are 10 million Filipinos
live abroad and more than 1 million Filipino leave the country each year to work abroad. Remittances to the
Philippines from around the world continue to grow.
Labor migration is a national thrust for economic growth and other countries see the Philippines as a model in
regulating migration. On the other hand, some migrant workers are forced into work against their will. They are
deceived about the nature of work and receive wages that are less than what is promised. Migrant workers can
be victims of forced labor and human trafficking.

ACTIVITY
Activity 1
Answer the following questions:
1. What do you think is the reason, why some companies have minimum requirement for accepting applicants?
2. You are currently working in a company here in the Philippines, but suddenly, you got an offer for the same
job abroad, same position but different salary, if you are going to decide what will you do?
3. Give two instances for the rapid increase of population.
4. What is the main reason for switching a job?
5. Illustrate the line graph of Philippine population from year 2016-2020

Activity 1
You are surely a resident in your barangay, as part of your activity for this module, conduct a barangay
research, for the following:
 current population status of your barangay
 Yearly change for the year 2019 and 2020
After your population research, illustrate it in bar graph.

REFLECTION
If you are given a chance to put up a business that will help your community in your municipality, what would
your business be?

TRANSFER
Your transfer here is also your activity 5. Make sure to do your activity 5.

See you on our next module!

Glory Be

In the name of the Father, and of the Son, and of the Holy Spirit

Glory be to the Father, and 4to the Son and to the Holy Spirit…
ST. ALOYSIUS GONZAGA PAROCHIAL SCHOOL
GUINAYANGAN, QUEZON

Parents signature over printed name