The Relationship of Education,

Employment and Population in the

Philippines Economic Growth
Statement of the Problem
This study attempts to assess how the
different determinants such as population,
education and employment affects the
Philippine Economy during the year 1995-
2005. In line with this, the researchers will
search for the answers of the following
questions:
What is the profile of the Philippines in terms
of education, employment and population?
How do variables- population size,
budgetary allocations for education, and
the number of persons employed affect
the Philippine economic growth?
Statement of the Problem
Population and economic growth?
Ho = there is no significant correlation
between population and economic growth
Ha= there is a significant correlation
between population and economic growth
Budgetary allocations for education and
economic growth?
Ho= there is no significant correlation
between budgetary allocations for
education and economic growth
Ha= there is a significant correlation
between budgetary allocation in education
and economic growth
Statement of the Problem
The number of persons employed and
economic growth?
Ho= there is no significant correlation
between the number of persons employed
and economic growth
Ha= there is a significant correlation
between the number of the persons
employed and economic growth.
Scope and Limitations
This research is focused on the geographical
limits of the Philippine area of
responsibility, which includes the Kalayaan
group of islands and the islands
surrounding the mainland Philippines.
Also, it will cover four administrations from
year 1995-2005, a ten series from Ramos
Estrada and Arroyo Administrations
following the newly revised 1988
constitutions.
In this line, the research will focus on three
independent variables that will measure
the national economic growth: population,
Scope and Limitations
Lastly, this research will limits itself to the
Gross national Product (G.D.P.) as an
indicator of economic growth.

 Significance of the study
The importance of this study can be beneficial
and significant to the different field of
interests and knowledge in which this study
can be viewed as a helpful tools.
It can also be seen as a helpful input towards
understanding the how’s and why’s
regarding the past and the current economic
situation of the Philippines, thus providing a
macroeconomic data that can be useful as a
reference and means for the public planners
involved in making principles concerning
different developmental strategies and
policies which can muster the effects of the
three determinants such as population,
education and employment, being studied in
line with this research work, thus determining
Significance of the study
The result of this research can also serve as
a backup or reference as guiding tool in
the proper legislation of economic bylaws
or acts that can aid and improve the
present economic situation of the
Philippines.
This research can also be viewed as useful
portfolio of the economy of the Philippines
that can be beneficial to the private and
investment firms for them to effectively
work on the environment of the Philippines
Significance of the study
The results of this study can also be valuable
to the different academic institutions and
other researchers most especially in the
field of economics. The outcome of this
can somehow bestow different economic
insights regarding the different roles
played by education, employment and
population that can affect the economy of
the Philippine and can serve as a helpful
basis and guide for future researches since
this study can provide a description of
what the Philippines has been between the
years 1995-2005.

Theoretical Framework
Solow’s Theory of Economic growth
This theory is projected by the ratio of
national saving to output (s) on the left-
hand side of the equation is determined by
the saving decisions of households,
business firms, and the government, while
the ratio of output to capital (Y/K) is
determined by technological factors. And
the growth rate of labor input (n) and
depreciation rate (d) on the right-hand side
of the relationship between saving and
steady-state investment are determined by
totally different considerations—birth
rates, death rates, immigration, and the
Research Design
This research was designed to use data
related to national macro economic data
during the period under review. From this
set of data it was determined whether they
had been a significant correlation between
the three independent variables namely:
population, education and employment, to
the behavior of economic growth of the
Philippines. The behavior of each of these
variables for the period under analysis was
analyzed in terms of their trends, growth
rate, and direction of movement. Their
behavior of growth was also assessed in
order to determine their volume and
Research Design
The behavior of every dominant
independent variable was defined through
the use of an econometric model. Through
the use of the econometric model
designed specifically for this study shows
the significant impact on the dependent
variable. The results of the econometric
data analysis were used as the bases for
providing the answers in the objectives the
researches wishes to answer.

Conceptual Framework

Population
Behavior of the Philippine
Education Economic Growth
Employment
 Research Instruments
Data Collection Procedure:
 Statistical Data pertaining to this
research were gathered from the following
agencies:
Asian Development Bank
National Statistics Office
National Statistical Coordinating Board
Department of Labor and Employment
United Nations

The Econometric Model
 Specifically for the intention to measure
trend, growth analysis and correlation
analysis, statistical data taken from various
agencies were used in order to determine
how the independent variables namely,
population, employment and education
significantly affect the dependent variable
which is the economic growth of the
Philippines. In determining specifically
these independent and dependent
variables, the researchers have made use
of the econometric model based on
economic theories.

 The Econometric Model

Y = β 0 + β 1x1 + β 2 x 2 + β 3x 3 + Ε
T h e a b o ve re la tio n sh ip is tra n sfo rm e d in to a
re g re ssio n e q u a tio n a n d w a s a p p lie d to d e te rm in e
h o w m u ch e co n o m ic g ro w th is g e n e ra te d b y th e
b e h a vio r o f p o p u la tio n , e d u ca tio n a n d e m p lo ym e n t
fo r th e p e rio d co ve re d b y th e stu d y ( 1 9 9 5 -2 0 0 5 )
Presentation, Analysis and
Interpretation of Data.
What is the profile of the Philippines in terms
of population, education, and employment
during the year 1995-2005?

Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
Presentation, Analysis and
Interpretation of Data.
How do variables- population size, budgetary
allocations for education, and the number of
persons employed affect the Philippine economic
growth?
 Population and economic growth?
 Ho = there is no significant correlation between
population and economic growth
 Ha= there is a significant correlation between
population and economic growth
 Regression result:
 Y= -1.03 – 7.40(pop) + 3.50 (educ) – 7.51 (emp)
 R2 = 86% ; perfect correlation is 1
 Interpretation – high degree of correlation
 t = -6.32; critical value = 2.262
 Interpretation : reject the null hypothesis
How do variables- population size, budgetary
allocations for education, and the number of
persons employed affect the Philippine economic
growth?
 Budgetary allocations for education and
economic growth?
 Ho= there is no significant correlation between
budgetary allocations for education and
economic growth
 Ha= there is a significant correlation between
budgetary allocation in education and
economic growth
 Regression result:
 Y= -1.03 – 7.40(pop) + 3.50 (educ) – 7.51 (emp)
 R2 = 73% ; perfect correlation is 1
 Interpretation – moderately degree of
correlation
 t = 2.49; critical value = 2.262
 Interpretation : reject the null hypothesis
How do variables- population size, budgetary
allocations for education, and the number of
persons employed affect the Philippine economic
growth?
 The number of persons employed and economic
growth?
 Ho= there is no significant correlation between
the number of persons employed and
economic growth
 Ha= there is a significant correlation between
the number of the persons employed and
economic growth.
 Regression result:
 Y= -1.03 – 7.40(pop) + 3.50 (educ) – 7.51 (emp)
 R2 = 89% ; perfect correlation is 1
 Interpretation – very high degree of
correlation
 t = -3.56; critical value = 2.262
 Interpretation : reject the null hypothesis
Summary of Findings
Philippines’ population is directly related to
economic growth which means that with the
increase of population size, economy is
growing.
In the previous studies conducted, population
growth increases supply in labor which is an
input in economic production.
The government’s budgetary allocation for
education is moderately contributed in
promoting the country’s economic growth.
An investment in human capital affects the
economic growth in the long run which is
obviously experienced in present time due
to globalization.
Summary of Findings
The economic value of education in the
Philippines is more functional in properly
utilizing the resources available in industry
since people are educated they could
properly used the resources in producing
output.
Also, it is inevitable that employment
determines the value of the purchasing
power of the individual and gives proper
allocation in the Business Cycle.
In international trading, investment is a big
factor in employment; if the government
creates satisfactory confidence to investors
Conclusions
1. It is very important for the Philippines to
control its population to support the
country’s continuous economic growth.
The budgetary allocation for the
educational system of the Philippines is
also a contributing factor to the country’s
economic growth due to the fact that it
serves as means of developing better
capabilities and more flexibility in
answering the demands of employment.

Conclusions
2. The Philippines declining population
growth contributed very much to its
economic growth, as justified with the high
degree of correlation between population
size and economic growth. The level of
employment had also become a factor in
determining the country’s economic
growth; the reason for this is that the
country’s budgetary allocation has boosted
the country’s employment rates.

Conclusions
3. Furthermore, with proper budgetary
allocation for education can boost the
confidence of international investors, thus,
can create more appropriate jobs. But, we
have to consider that outsourcing and
vocational/technical jobs must be given
some priority so that can supply enough
and competent individual to the
international market.

Conclusions
4. Employment is an important factor that
would determine the individual’s capability
to be part of the market. His participation
through purchasing is an important act
that would make the demand and supply
would work clearly. If education fails to
imply the importance of employment, thus,
it can make the market in a down-sloping.

Recommendations
Philippines’ educational system must be
given full attention to be more flexible in
providing students to properly utilize their
human resources to the needed areas of
education to gratify the changing demands
of growing economy.
The government must improve its system in
supporting the needs of economy, for this
would help improve the skills of the
majority where most population belongs to
the low educational profile.

Recommendations
The educational program of the Philippines
should further encourage higher
education, and make educational
opportunities more affordable and
accessible to deserving students.
The Philippines must encourage and boost
the need for family planning to further
improve the population growth rates,
governmental actions regarding population
control must be continually pursued and
supported.

Thank you very much!
Be Kind =)