THE RELATIONSHIP BETWEEN UNEMPLOYMENT RATES AND POVERTY IN

BARANGAY STO. NIÑO, ABUYOG, LEYTE

_______________________________________________

A Research proposal Presented to

Ms. Jean Micah H. Delgado

______________________________________________

In Partial Fulfillment
of the Requirements for the Practical Research II

_______________________________________________

Melvin Lendio, Angela Mae Pacia, Dorena M. Perez, Joem Kent A. Remanes, Alwena
Jane Tubis

December 2023
i
 CHAPTER I

INTRODUCTION

BACKGROUND OF THE STUDY

Unemployment refers to the situation where individuals who are willing and able to work

are unable to find suitable employment opportunities. It is a measure of the percentage of the

labor force that is actively seeking employment but remains jobless. Unemployment can occur

due to various factors such as economic downturns, technological advancements, lack of skills,

and structural changes in the labor market. It is an important economic indicator that reflects the

overall health of an economy and has social and economic implications for individuals and

society as a whole.

Poverty is a state of financial insufficiency or a condition in which individuals or communities

lack the resources to satisfy their basic needs for a decent standard of living. These basic needs

typically include access to food, clean water, shelter, education, healthcare, and other essentials

for a dignified life. Poverty can vary in severity, from absolute poverty, where people struggle to

meet even the most basic needs, to relative poverty, where individuals or groups have less

income or resources compared to the broader society, they live in. Poverty can be caused by

various factors, including economic inequality, lack of access to education and employment

opportunities, and systemic issues within a society. Efforts to combat poverty often involve

social policies, economic development initiatives, and humanitarian aid programs.

(Investopedia, 2020)
The relationship between poverty and unemployment has long been a source of concern for

policymakers, scholars, and communities worldwide. Brgy. Sto.Niño is one of 63 barangays in

Abuyog, Leyte that shows us the kinds of challenges that some of the barangays located in the

Philippines has been particularly facing the same issue. In order to fully comprehend the

situation, we must take a deep look at this particular neighborhood. This study investigates the

relationship between poverty and unemployment in Poblacion of Abuyog.

This study intends to know the reasons behind this and the issues it raises. This study intend to

investigate the connections between these two issues in order to identify strategies for

community development and support. To evaluate what we can learn and what can assist break

the cycle of poverty and unemployment, we will examine strategies that were successful in

Barangay Sto.Niño, Abuyog, Leyte.

In Brgy. Sto.Niño, Abuyog, Leyte, the relationship between poverty and unemployment is a

complex one that requires further investigation. In order to improve the quality of life for this

community, this research attempts to provide us with a thorough understanding of these issues.

Our goal is to improve Brgy. Sto.Niño, Abuyog, Leyte and make the future of all individuals more

effective through introducing positive changes that are based on thorough analysis and a

dedication to the welfare of the local population.

Objective:

The objectives of this research are the following:

1. To assess the causal relationship between unemployment rates and poverty levels.
2. To examine the impact of government policies and social programs on reducing poverty rates

among unemployed individuals in Barangay Sto.Niño, Abuyog, Leyte.

3. To investigate the intersectionality of poverty and unemployment by analyzing how factors

such as race, gender, education, and geographical location influence the vulnerability of certain

populations to simultaneous poverty and unemployment and identify strategies to address these

disparities.

Statement of the Problem

The researchers aims to answer the following questions

1. How does unemployment have causal relationship with poverty levels overtime?

2. What are the impact of government policies and social programs on reducing poverty

rates among unemployed individuals in Barangay Sto.Niño, Abuyog, Leyte?

3. How does race, gender, education and graphical location influence the vulnerability of

certain populations to simultaneous unemployment and poverty rates?

Scope and Limitation of the Study

This study focuses on the Relationship between Unemployment and Poverty Rates in

Barangay Sto. Niño, Abuyog, Leyte. The data collection will be conducted to selected

participants in the specific locale of the study that will represent the population. The correlation

between unemployment rates and poverty rates will be the main topic of discussion. Other

factors including policies from the government, economic growth, and educational background

may also be taken into consideration, however their analysis will be limited. It can be
challenging to identify the effect of unemployment because poverty can be caused by a wide

range of reasons, which includes factors like inflation, economic cycles, and structural changes

that could possibly influence poverty rates, therefore this study will show a connection between

unemployment and poverty and proving its causality.

The study will cover a particular period of time, which could span years or decades depending

on the current state of data. This study will not cover other problems that are not particularly

considered under the relationship between unemployment and poverty rates. Due to the study’s

limited geographical scope, the results of this study will be applicable only to the respondents

and to the specific locality of this study. The questions that will be offered by the researchers are

easy to comprehend, it is optional to write down their names to hide their identity and for privacy

reasons.

The study’s parameters are stated in this scope and limitation statement, which also

acknowledges the study’s limitations and possible challenges in obtaining concrete results.

Definition of Terms

The following terms are used in the study.

Causal relationship- A direct cause and effect relationship between the independent

and dependent variables.

Economic Cycle- the circular movement of an economy as it moves from expansion to

contraction and back again.

Economic Inequality – is the unequal distribution of income and opportunity between

different groups in society.

Systemic Issues- Is a basic one, experienced by the whole of an organization or a

country and not just particular parts of it.

Economic development initiatives- an organization which provides financial support

to projects that encourage economic diversification, business development, innovation,

partnerships, and increased support for small- and medium-sized enterprises in official

language minority communities (OLMCs).

Humanitarian Aid- delivering life-saving assistance to those in need, without any

adverse distinction.

Geographical Location- the physical place a statistical unit is located and for which

statistics are collected and disseminated

Significance of the Study

A study on the relationship between unemployment and poverty rates can benefit various

groups and stakeholders, including:

Policymakers - They can use the findings to develop targeted policies and interventions to

reduce poverty by addressing unemployment issues.

Government agencies - Data from such studies can help in resource allocation and

monitoring the effectiveness of social programs.

Employers and businesses- Understanding this relationship can help them make informed

decisions about hiring practices and community involvement

Individuals and communities- The study can shed light on the challenges faced by those

experiencing unemployment and poverty, encouraging support and social awareness.

Future researchers – can use this as their guide to make further studies about this research.

In summary, a study on this relationship can have broad implications for various sectors and

populations.
 CHAPTER II

REVIEW OF RELATED LITERATURE

Review of Related Literature

This section presents the
relevant literature and
information from various
readings from online
sources, articles, journals,
and published books that are
beneficial
and pertinent to the study.
Review of Related Literature
This section presents the
relevant literature and
information from various
 readings from online
sources, articles, journals,
and published books that are
beneficial
and pertinent to the study.
Review of Related Literature
This section presents the
relevant literature and
information from various
readings from online
sources, articles, journals,
and published books that are
beneficial
and pertinent to the study.
 This section presents the relevant literature and information from

various readings from online sources, articles, journals, and published books that

are beneficial and pertinent to the study.

Review of Related Literature

This section presents the
relevant literature and
information from various
readings from online
sources, articles, journals,
and published books that are
beneficial
and pertinent to the study.
Penury
Poverty has a multiple
cause. Some people lack
sufficient resources due to a
variety of issues, including
growing living expenses, low
salary, unemployment, and
insufficient social security
payments (Child Poverty
Statistics UK, 2016). People
who
are impoverished are among
the most at risk in society
because they typically have
fewer resources, greater
newborn death rates,
more stunted children,
and lower
educational attainment
(Suckling et al., 2021).
Poverty

The definition of poverty is a complex and multifaceted issue, with various dimensions

and measurement. Botchway (2013) emphasizes the need for a yardstick to identify the

poor and tools to measure the depth of their poverty, while Akindola (2009) expands the

definition to include a range of deprivations that limit human capabilities. These

perspectives collectively highlight the need for a comprehensive and dynamic

understanding of poverty.

Poverty has a multiple cause. Some people lack sufficient resources due to a variety of

issues, including growing living expenses, low salary, unemployment, and insufficient

social security payments (Child Poverty Statistics UK, 2016). People who are

impoverished are among the most at risk in society because they typically have fewer

resources, greater new-born death rates, more stunted children, and lower

educational attainment (Suckling et al., 2021)

Every country in the world experiences poverty, while some countries experience it

more acutely than others (World Population Review, 2022). Globally, around 8% of the

world’s population is considered to be living in extreme poverty, which is generally

defined as making less than $1.90 per day (OCHA, 2020). According to Aguilar et al.

(2022), at the US$1.90 poverty threshold, the worldwide poverty rate is 8.6% in 2018,

down from 9.1% in 2017, meaning a decrease of 28 million poor people between the

two years. This demonstrates that extreme poverty is still declining globally, but more
slowly recently as previously reported. On the other hand, although there has been a

reduction in poverty over the past three decades, between 1981 and 2010, the number

of impoverished people in Sub-Saharan Africa increased. From 205 million to

414million people, it increased (TheWorldCounts, 2022)

In the Philippines, in the year 2021, almost 3.50 million families, or 13.2 percent, were

categorized as poor. Contrarily, the incidence of subsistence among families was found

to be 3.9 percent, or 1.04 million poor families living below the food poverty level (PSA,

2022). The Philippine Statistics Authority just released the most recent official data,

which shows that more Filipinos are impoverished now than they were in 2018

(Palatino, 2022). One of the biggest problems this nation and its people currently face is

poverty. In such challenging circumstances, Filipinos are struggling to survive, and an

increasing number are sinking into abject poverty (Project, 2018). According to the

Asian Development Bank (2009), inadequate job creation and job quality are two factors

contributing to poverty.

Unemployment
Unemployment is one of the
most frequent causes of
poverty, despite the fact
that there are many other
factors that might affect an
economy. Only in the top 10
most
populous countries do the
total number of unemployed
people approach 1.1 billion,
making global
unemployment such a major
problem. Numerous
economies all around
the world face both
direct and indirect
repercussions of
unemployment, which
demonstrate how poverty is
created (Hinteregger, 2017).
According to National
Bureau
of Economic Research, the
unemployment rate, median
salaries, and pay disparity
are
all significant contributors to
poverty. It indicates that a
10% rise in the minimum
wage
results in a 2% decrease in
poverty rates, while a 1%
increase in unemployment
results
in an increase of 0.4 to 0.7%
in poverty rates (NBER,
2006).
Unemployment

Unemployment is one of the most frequent causes of poverty, even though there are

many other factors that might affect an economy. Only in the top 10 most populous

countries do the total number of unemployed people approach 1.1 billion, making global

unemployment such a major problem. Numerous economies all around the world

face both direct and indirect repercussions of unemployment, which

demonstrate how poverty is created (Hinteregger, 2017). According to National Bureau

of Economic Research, the unemployment rate, median salaries, and pay disparity are

all significant contributors to poverty. It indicates that a 10% rise in the minimum wage

results in a 2% decrease in poverty rates, while a 1% increase in unemployment results

in an increase of 0.4 to 0.7% in poverty rates (NBER, 2006).

Globally, according to the United Nations (UN), one of the key methods for

individuals living in poverty to enhance their wellbeing is through "full and productive

employment." But continuing societal risk factors like inflation, supply-chain disruptions,

conflict, the coronavirus epidemic, and others are making both unemployment
and poverty worse (Citibeats, 2022). Filipenko (2022), highlighted that still,

underemployment and unemployment are the main causes of poverty. Of

the 689 million people who live in extreme poverty, finding work is typically their sole

option for improving their situation. The concept that poverty, loss of money, or

financial stress mediates the association between health and unemployment is

supported by social epidemiology data. Poor mental and Poor physical can be

caused by poverty in a variety of material and psychosocial ways (Renahy et al.,

2018)

In the Philippines, the

National Economic and
Development Authority
(NEDA)
reports that employment
prospects are still high as the
country transitions to
granular
lockdowns, despite a
slight increase in
unemployment in
September 2021 as the
country's economic centers
continued to be subject to
strict quarantines and as
weather
disturbances affected
agriculture. According to the
Philippine Statistics
Authority, the
nation's jobless rate
drastically dropped from 7.2
percent in the same period
previous
year to 5.2 percent in July
2022. Additionally, this is the
lowest unemployment rate
recorded in the Labor Force
Survey's July rounds since
2005 (NEDA, 2022). Rivas
(2021), stated that even
when President Rodrigo
Duterte leaves office, the
Philippines'
poverty and unemployment
rates would stay high due to
the pandemic's damage to
the
job marke
In the Philippines, the National Economic and Development Authority (NEDA) reports

that employment prospects are still high as the country transitions to granular

lockdowns, despite a slight increase in unemployment in September 2021 as

the country’s economic centres continued to be subject to strict quarantines and as

weather disturbances affected agriculture. According to the Philippine Statistics

Authority, the nation’s jobless rate drastically dropped from 7.2 percent in the same

period previous year to 5.2 percent in July 2022. Additionally, this is the lowest

unemployment rate recorded in the Labour Force Survey's July rounds since 2005

(NEDA, 2022). Rivas (2021) stated that even when President Rodrigo Duterte leaves

office, the Philippines ‘poverty and unemployment rates would stay high due to the

pandemic's damage to the job market.

Unemployment as a Precursor to Poverty

Unemployment is often considered a significant precursor to poverty. When

individuals or households lose their source of income due to unemployment, they are at

a higher risk of falling below the poverty line. The longer the duration of unemployment,

the greater the risk of poverty.

Unemployment is a significant precursor to poverty, particularly when it comes to the

working-age population (Saunders, 2016). This relationship is further emphasized by

the fact that the elimination of unemployment among household heads could reduce the

number of people living in poverty by 10% (Corcoran, 2000). The impact of

unemployment on poverty and inequality is complex, with the need for welfare reform

and emphasis on employment generation (Chalmers, 2003; Saunders, 2002).

Unemployment and poverty are closely linked, with the former significantly contributing

to the latter (Corcoran, 2000) Unemployment insurance can help mitigate the adverse

effects of unemployment on poverty and health (Renahy, 2018). This relationship is

further confirmed by studies in specific regions, such as Niger State in Nigeria

(Mohammad, 2019). Both unemployment and poverty are associated with a

deterioration in health, highlighting the interconnectedness of these factors (Vaalavuo,

2016).

income and ability to work. In Wales, 20% of adults in the most deprived areas report

being treated for a mental health condition, compared to 8% in the least deprived.

Children from the poorest 20% of households are four times as likely to have serious

mental health difficulties by the age of 11 as those from the wealthiest 20%. Suicide

rates are two to three times higher in the most deprived neighbourhoods compared to

the most affluent. The more debt people have, the more likely they are to have a mental

health problem. One in four people experiencing a mental health problem is in problem

debt. People with mental health problems are three times more likely to be in financial

difficulty. Good quality employment is one of the most strongly-evidenced determinants

of mental health. In January 2021, 43% of unemployed people reported poor mental

health (compared to 27% of people in employment) (Senedd Research, 2021).

Government Support and Policy

Governments often implement policies and support systems to mitigate the impact of

unemployment on poverty. These include unemployment benefits, social welfare

programs, and job training initiatives designed to provide a safety net for those affected

by job loss. Such interventions aim to help individuals and families maintain a basic
standard of living, reduce the severity of the poverty impact, and support their eventual

return to the workforce.

The Philippine government has implemented various poverty reduction programs, such

as the Pantawid Pamilya Program (4P’s), to address the issue of poverty (Salazar,

2020). However, these efforts are hindered by disparities in wealth and policy-making

biases, particularly in rural and marginalized areas (Clausen, 2006). To effectively

combat poverty, the government must consider the dynamics of poverty and

vulnerability, and tailor interventions accordingly (Albert, 2018). The success of poverty

reduction programs in alleviating hunger is also a key consideration (Rivera, 2012).

Education and Skills

Poverty, unemployment, and education are inextricably linked because poverty

causes children may not be able going to school, which leaves them without education

and skills they need to further their future. People with low education and skills normally

end up working as low-income labours (Nemara, 2019).

Education and skills development are essential components of addressing the

relationship between unemployment and poverty. Access to quality education and

training opportunities can enhance an individual’s employability and resilience to

economic fluctuations. Those with higher levels of education and marketable skills are

better equipped to find stable employment, reducing their risk of falling into poverty

during periods of unemployment.

Education becomes an unaffordable luxury for many families, especially those living in

the most impoverished communities. The inability to send their children to school forces
them to work instead, perpetuating the cycle of poverty for generations. Creating a huge

percent of unemployed Filipinos.

Almost ten percent of the estimated 39 million Filipinos 6 to 24 years old were out-of-

school children and youth (OSCY), according to the results of the 2016 Annual Poverty

Indicators Survey (APIS). In this report, OSCY refers to family members 6 to 14 years

old who are not attending formal school; and family members 15 to 24 years old who

are currently out of school, not gainfully employed, and have not finished college or

post-secondary course.

According to the results of the survey, less than two percent of children aged 6 to 11

years were OSCYs; which is twice lower than the 3.5 percent of the total children aged

12 to 15 years who were not attending school. Of the 3.8 million OSCYs, 87.3 percent

were 16 to 24 years old, 7.7 percent were 12 to 15 years old and 5.0 percent were 6 to

11 years old. The proportion of OSCYs was higher among females than males

(Philippine Statistics Authority, 2017).

Good education increases the chances of good employment. Tutor et al. (2021) found

that a positive college experience, in its multiple dimensions, is generally associated

with better employability, a stronger sense of citizenship, less predisposition to political

action, and better life satisfaction. However, having a tertiary education does not

guarantee a job with a decent wage (Balboa and Mantaring 2011). College graduates

may find themselves unemployed due to a number of reasons, including not having

enough jobs, the mismatch between the courses that students take and what employers

need, and the lack of competitiveness of graduates due to substandard quality of

education (Philippine Institute for Developmental Studies, 2021)

With the growing number of job seekers eagerly looking to start and grow in their

careers, job mismatches have become normalized occurrences despite being a

concerning matter in the job market. A recent study by the Philippine Institute for

Development Studies (PIDS) found that 40% of employed Filipinos have academic

credentials beyond what is needed in their jobs and that these Filipinos were only

earning 5% more for finishing their studies despite being relatively overeducated for

their positions.

According to the leading online job portal JobStreet, a job mismatch is a growing

phenomenon wherein the skills required to be successful in a certain position and the

skills possessed by a certain employee are not completely aligned with each other,

consequently affecting the employee’s work productivity, motivation, and development.

The world is still fighting against poverty, unemployment, and lack of decent work.

According to ILO, 40.3 million people are victims of modern slavery, while 24.9 million

people are affected by forced labours, and the rest are unemployed. Indonesia, like

most other developing countries, has an abundance of unskilled labor that flows across

the region seeking jobs, mostly illegally and without protections afforded by law. Based

on United Nation, only 11,4% of labour force in Indonesia have competed tertiary level

education, and 59,9% have completed elementary school.

On the other hand, education is considered to be one of the most effective ways to

combat poverty. It has been proven that education has the power to transform people’s

lives and create opportunities for personal and economic growth. In fact, research

shows that every year of education can increase an individual’s income by up to 10%.
Education can also provide people with the skills and knowledge they need to secure

employment and become financially independent (Global Citizen, 2020).

Geographic and Demographic Variations

The relationship between unemployment and poverty is not uniform and can vary

significantly based on geographic location and demographic factors. For example, rural

areas may face unique challenges, as they often have fewer job opportunities and

limited access to support services.

The National Capital Region (NCR) was estimated to have the highest unemployment

rate in the Philippines in 2022 at 7.2 percent. In contrast, Region 12 and CAR had the

lowest estimated unemployment rate 3.7 percent that year. In 2019, the unemployment

rate in the Philippines was at approximately 2.24 percent and on a steady downward

trend from 3.6 percent in 2014 (Statistica Research Department, 2023).

Certain demographic groups, such as minorities or individuals with disabilities, may

experience higher rates of unemployment and poverty due to systemic barriers related

to discrimination, access to education, and economic opportunities. These variations

emphasize the importance of tailored strategies for addressing the relationship between

unemployment and poverty in different contexts.

The opportunities of job and distribution also might refer to the age and the gender-

based individuals. Age discrimination limits older Filipinos’ access to employment. In

hiring practices of employers, arbitrary age requirements bar older persons from getting

employed. Similarly, some employers also impose early retirement due to a person’s old

age. A study in 2018 indicated “that many local employers [in the Philippines] practice

discrimination against older workers not only when they enforce age limits during hiring,

but also when promoting or firing workers. Service institutions like malls and restaurants

rarely keep attendants beyond 25 years of age. There are also reports that returning

Overseas Filipino Workers or OFWs have difficulty looking for employment because of

the employer’s preference for younger employees (COMISSION RIGHTS OF THE

PHILIPPINES, 2021).

Emerging Trends

Technological developments and automation may result in labor displacement in

industries where machines are more efficient at performing tasks. This may lead to a

loss of employment and to poverty, in the event that there are few alternatives for other

work.

Advances in automation and artificial intelligence (AI) over the next decade are poised

to take a brutal toll on workers, especially those engaged in manual labor and low-

skilled agricultural roles. This was according to comprehensive study released by

technology giant Cisco and Oxford Economics, which forecast that at least 1.1 million

jobs in the Philippines will disappear by 2028 as rapid technological innovations force

workers to adapt or go unemployed.

In the Philippines, major areas of displacement are jobs in agriculture (1.2 million),

wholesale/retail (880,000) and manufacturing (380,000). Overall, displaced workers will

amount to 4.5 million, or over 10 percent of the workforce. (INQUIRER.NET, 2019)

CONCEPTUAL FRAMEWORK • Conduct Surveys and

Interviews with Residence in

The framework the study represents the outline of
Barangay Sto. Nino Abuyog
output and analysis of data to be gathered in order
Leyte
to arrive at the desired outcomes.
•Administer questionnaires to
INPUT
gather data on the relationship
PROCESS
between unemployment and

Relationship between poverty rates.

Unemployment and
• Conduct structured
Poverty rates in
interviews to delve deeper into
Barangay Sto. Nino Abuyog,
Leyte the residence of Barangay

Sto. Nino Abuyog, Leyte

experiences and perceptions.

•Organize and categorize the

collected data for analysis.

• Employ statistical analysis

techniques to quantitatively

analyze the survey data.

 OUTPUT

 The Interpretation of the

data collected

 Formulation of conclusion.
 Theoretical Framework
A theoretical framework consists of concepts and, together with their definitions and

reference to relevant scholarly literature, existing theory that is used for our study. The

theoretical framework must demonstrate an understanding of theories and concepts that

are relevant to the topic of the research paper and that relate to the broader areas of

knowledge being considered.

The Theory of Individual Deficiencies

This theory of poverty asserts that the individual is responsible for their own poverty

situation. Gans, (1995) and cited by Sameti et al (2012) believe that the individual

factors that cause or fuel poverty include individual attitude, human capital, and welfare

participation. Bradshaw(2006) blame the poor for creating their own problems arguing

that with hard work and better choices the poor could have avoided and solved their

problems. He further explained that poverty is caused by lack of genetic qualities such

as intelligence that are not so easily reversed. This theory has got its root in American

values and belief in the free market system, a system thought to provide opportunity for

all. Rank (2004) and cited by Sameti et, al.(2012) asserted that the belief in

individualism places much emphasis on individual hard work, and responsibility to

acquire basic needs including food, shelter and health care services. Further, the theory

based on the premise of American values and belief emphasizes that talent, virtue and

hard work can lead to success and that individual poverty is an individual failing due to

lack of motivation. The individual theory of poverty is criticized on the grounds that with

the emergence of the concept of inherited intelligence in the nineteenth century, the

eugenics movement went on to rationalize poverty and even sterilized those who
appear to have limited abilities (Bradshaw, 2006). Secondly, Rainwater, (1970) and cited

by Bradshaw (2006) beliefs that the poor are afflicted by the mark of Cain; they are

meant to suffer, indeed must suffer because of their moral failings.

In the third place a study conducted by Schwartz (2000) and cited by Sameti, et, al.

(2012) found that the poor emphasize hard work, dislike welfare system, and personal

responsibility. This finding refutes the societal belief that poverty is caused by

individual’s negative attitude. It is asserted by Asen (2002), and Bradshaw (2006) that

any individual can succeed by the application of skills and hard work, and that

motivation and persistence are all that is required to achieve success.

The Theory of Economic, Political, and Social Distortions or Discrimination

According to Davis and Moore (1945) and cited by Sameti, et, al. (2012) certain

positions in society require special and at times unique talents, skills and knowledge.

They further argue that conversion of one’s talent into such special skills and knowledge

requires a training period during which the individuals undergoing such training must

sacrifice their time, money and other resources. People should therefore be motivated

accordingly to sacrifice to undergo such training with reward such as higher wages and

privileges, otherwise society will suffer. Hurst (2004) cited by Sameti, et, al.2012) opined

that the labour-market theories focus on income and earning disparities to explain the

major causes of poverty. Furthermore, certain demogaphic characteritics including

race, gender work disability family size and structure, residence and age are important

factors that can inrease the risk of poverty. Generally, poverty rates are higher among

single parent household, women, minority groups, households with large number of

children, and families (Rank, 2004)

The Theory of Cultural Belief Systems that Support Sub-Cultures of Poverty

This theory focuses on the belief that poverty is created or caused by the transmission

over generations of a set of beliefs, values, and skills that are socially generated but

individually held (Bradshaw, 2006). Bradshaw(2006) further asserts that individuals are

to blame because they are victims of their dysfunctional subculture or culture. It should

be noted that this theory has its root in the “Culture of Poverty”. The concepts of culture

of poverty and social isolation or exclusion provide frameworks that explain how poverty

is created and maintained in some neighbourhoods or among some groups. The

cultural and environmental factors relate to the influence of people’s residential

environment that tends to shape poverty or success.

The Theory of Geographical Disparities

According to Bradshaw(2006), this cause of poverty represents rural poverty, ghetto

poverty, urban disinvestment, southern poverty, third –world poverty, and others that

exist separate from other theories. This theory of poverty calls attention to the fact that

people, institutions, and cultures in certain areas lack the objective resources needed to

generate well-being and income, and that they lack the power to claim redistribution.

According to Abdulai and Shamshiry (2014) the use of geographical disparities in

poverty analysis presupposes the concentration of poverty in some particular areas,

communities, localities within countries and among regions in the world. Some

explanations given about the factors responsible for poverty include disinvestment,

proximity to natural resources, density, diffusion of innovation and other factors. It has
long since become a conventional belief that advantaged areas stand to grow more

than disadvantaged areas even in periods of general economic growth. Solutions

suggested to deal with poverty associated with geographical disparities favoured

tackling the main factors that precipitate decline in depressed areas (Abdulai and

Shamshiry, 2014).

The Theory of Cumulative and Cyclical Interdependencies

Bradshaw (2006) explains that inadequate employment leads to inadequate income

causing inadequate spending, consumption, and savings. This presupposes that

individuals cannot invest in training, businesses or start their own businesses; which

further means that there will be no expansion, market will dwindle, people will disinvest,

leading to lack of opportunities in the community. The second level of the cycle has to

do with health challenges. There will also be health issues or challenges, due to inability

to afford preventive medicine, a good diet, and a healthy living environment. All these

are some of the reasons why the poor falls behind. Further, the cycle of poverty also

means that due to inadequate income the poor fail to invest in their children’s education,

the children learn in poor quality schools and fall further behind when they go to the job

market. They are also vulnerable to illness and poor medical care.
Source: Google Maps

Research Hypothesis

The following statement is the research hypothesis of the study.

Null Hypothesis

There is no significant relationship between unemployment rates and poverty; changes

in unemployment rates do not lead to corresponding changes in poverty.

Alternative Hypothesis

There is a significant relationship between unemployment rates and poverty; changes in

unemployment rates are associated with corresponding changes in poverty.

CHAPTER III

Methodology

This chapter explains various methodologies that were used in gathering data and

analysis which are relevant to the research. The methodologies will include areas such

as the location of the study, research designs, sampling and sample size, types of data,
data collection method, data gathering, method of scoring and interpretation and

statistical treatment of data.

Research Design

This study utilized the quantitative research approach and correlational research design.

Quantitative research is all about quantifying relationships between variables, it aims to

determine the relationship between independent variable and dependent variable in

population. It helps the researcher provides answer that describe the characteristics of

the population being studied.

Correlational research design is used in research, to measure two or more relevant

variables and assess the relationship among them.

Researcher used survey method research wherein the participant’s answer questions

administered through the questionnaires. After the respondents answer the questions,

the researchers will going to interpret the responses given.

Research Locale

Sto. Nino is one of the nine barangays that make up Abuyog Poblacion. The barangay

is divided into two sections: the core section and the Boulevard, Abuyog's fishport

headquarters. Through snowball sampling we’re able to decide for our chosen

research locale. This barangay has a total population of 2,994. We used the Slovins

formula to come up with our sample size with 380 total of respondents. Snowball

sampling will be used to collect data for our investigation considering poverty and

unemployment are sensitive topics that we will be exploring in our research.

We had set a criterion for our respondents: they must be 21 years old or older.

Research Instrument

The instrument used in the study is the survey questionnaire, A survey-questionnaire

consists of a set of questions to collect information from a respondent. Additionally, the

researchers have agreement from the respondents and take their ethical considerations

into account.

The questions about the connection between unemployment and poverty rates will be

posed to the respondents by the researcher.

Data Gathering

The researcher will use survey questionnaire using Dichotomous Questions in data

collection process. This study followed the following process:

- The researcher will give the letter to the selected respondent from Poblacion

Abuyog, Leyte

- The researcher will conduct the survey.

- The researchers will analyze and interpret the answers of the respondents in the

questionnaire.

Method of Scoring and Interpretation

After retrieving the data and the responses of our respondents, the reflected result of

the filled up survey questionnaire will be checked, recorded, and interpreted

accordingly. These three methods will be used to correlate the unemployment and

poverty rates of Sto. Niño Abuyog, Leyte.

Statistical Treatment of Data

As soon as the researchers gathered the data, they were compiled, sorted,

organized, and tabulated. They were subject to statistical treatment in order to answer

the questions proposed in the study.

1. Frequency distribution is an arrangement of the data which shows the frequency of

different values or groups of variables.

2. Percentage is to be used to determine the proportion of each given data by using the

formula.

% = (F/N) X 100

Where:

% = Percentage

F = No. of respondents

N = total number of cases

3. Weighted mean, the arithmetical average obtained by adding all the arithmetical

scores divided by the number of cases as presented by the formula.

 x=
∑ fx
∑f

Where:

x = weighted mean

∑ = summation

F = frequency of each option

x = weight of each option

Research Questionnaires

1. Are you currently employed? (Yes/No)

2. Have you experienced a period of unemployment in the last year? (Yes/No)

3. Do you believe that unemployment directly leads to an increase in poverty? (Yes/No)

4. Are government policies effective in reducing the poverty caused by unemployment?

(Yes/No)

5. Do you think education and skill development can prevent individuals from falling into

poverty due to unemployment? (Yes/No)

6. Is there a correlation between the length of unemployment and an increased

likelihood of experiencing poverty? (Yes/No)

7. Do you believe discrimination in the job market contributes to higher unemployment

rates and, subsequently, increased poverty? (Yes/No)

8. Is access to healthcare a significant factor in mitigating the impact of unemployment

on poverty? (Yes/No)

9. Can social support programs effectively alleviate poverty resulting from

unemployment? (Yes/No)

10. Do you perceive a connection between technological advancements and rising

unemployment, leading to higher poverty rates? (Yes/No)

11. Does the availability of job opportunities in rural areas compared to urban areas

impact poverty rates? (Yes/No)

12. Are government anti-poverty programs successful in addressing the consequences

of unemployment? (Yes/No)

13. Do you believe economic recessions contribute to a cyclical relationship between

unemployment and poverty? (Yes/No)

14. Is there a correlation between global economic conditions and unemployment

levels, influencing poverty rates in your country? (Yes/No)

15. Can entrepreneurship and small businesses play a role in reducing unemployment

and poverty? (Yes/No)

16. Does financial literacy contribute to individuals and families avoiding poverty during

periods of unemployment? (Yes/No)

17. Is there a link between automation and job loss, leading to increased poverty?

(Yes/No)
18. Are welfare programs effective in reducing poverty caused by unemployment?

(Yes/No)

19. Does discrimination and inequality in the job market contribute to unemployment

and poverty disparities? (Yes/No)

20. Do you believe that addressing unemployment is the most effective way to alleviate

poverty? (Yes/No)

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