Lesson 10 over employment, unemployment, underemployment and overtime

1. Over Employment,
Unemployment,
Underemployment and
Overtime…
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2. Over employment, Unemployment,
Underemployment and Overtime…
•Over employment refers to a situation where
workers are willing but unable at their
current jobs to reduce the amount of time
they devote to earning an income. Many
people go through a spell at some point when
they would prefer shorter work hours. They
are prepared to sacrifice income to attain it in
order to avoid the more costly step of leaving
an occupation or withdrawing from the labor
force entirely." (Golden L. 2003)

3. •Over employment is another dimension
which refers to those who work long hours in
jobs which provide very low earnings and
productivity.
•Another is Soft employment which refers to
less “decent” employment or those jobs which
provides no security of tenure, no social
security benefits and very limited rights for
workers both in terms of participation in
decision making and the rights to organized.
•Apart from unemployment is its “halo” such as
the problems of (1) child labor, statistics of
which are not captured in the labor force
survey, (2) old age without pension and (3)
female workers with young children.

4. •Overtime refers to working hours beyond some
standard or norm. For employees on payrolls,
this standard is widely considered 40 hours/
week, embodying the spirit of the Fair Labor
Standards Act (FLSA) standard workweek.”
(Golden)
•Labor Code of the Philippines defines
Overtime as work performed beyond an
employee's regular duty hours of 8 hours in a
day (Art. 87, Labor Code), while regular hour is
the whole time when an employee is required to
be on duty in his workstation not exceeding 8
hours per day (Art. 84, Labor Code)

5. On Overtime Pay…
•Art. 88 prohibits the offsetting of under
time by rendering overtime, or vice versa.
That rule only allows the employer to
deduct the under time to the employee's
accrued leave, or to hours regularly
performed on that day, but does not exempt
an employer from paying overtime pay on
same day.

6. Unemployment…
•Unemployment is defined as the total lack of
work at a given point in time. It is a situation
of those persons who want work and are able
to take suitable jobs but cannot find them.
Unemployment complements the
measurement of employment. The two
concepts together make up the country’s
labor force or supply of labor.

7. Unemployment…
•The existing international standard
measurement of unemployment is
embodied in Resolution Concerning
Statistics of the Economically Active
Population, Employment, Unemployment
and Underemployment that was adopted
during the 13th International Conference of
Labor Statisticians (ICLS) held at Geneva
Switzerland in 1982.

8. •The Resolution defines the “unemployed” to
comprise all persons above a specified age who
satisfied simultaneously the following three
criteria:
a). “Without work”, i.e., were not in paid
employment or self-employment as specified by
the international definition of employment;
b). “Currently available for work”, i.e., were
available for paid employment or self-
employment during the reference period; and
(c). “Seeking work”, i.e., had taken specific steps
in a specified recent period to seek paid
employment or self-employment.

9. •The Labor Force Survey (LFS) of the
Philippines defines the unemployed
persons as all those who during the
reference period are 15 years old and
over as of their last birthday who have no
jobs/businesses and are actively looking for
work, as well as those persons (partial
relaxation) without jobs or businesses who are
reported not looking for work because of their
belief that no work was available or because of
temporary illness/disability, bad weather,
pending job application or waiting for job
recall.

10. Underemployment…
•A situation in which a worker is
employed, but not in the desired
capacity, whether in terms of
compensation, hours, or level of skill
and experience. While not technically
unemployed, the underemployed are
often competing for available jobs.

11. •In the Philippines, the rising incidence of
underemployment is considered a more
serious problem than unemployment since
underemployment rate is usually higher or
twice the unemployment rate. While
unemployment is usually a problem among
youth (with an average rate of 17.0%),
underemployment cuts across age groups
and affects more the less educated workers
and heads of families.