The Impact of Government Expenditure on Education on the Unemployment Rates in the Philippines from 1991 to 2024

Authors

  • Rhizi Lei DC. Nicdao Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Hazellyn Mae D.A. Samson Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Jamelle Ann G. Diaz Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Neriza Mae P. Apostol Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Aaron Ellis A. Dail Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Jasmine Angela E. Garcia Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines
  • Allen Grace M. Sarmiento Business Economics Department, College of Business Education and Accountancy, Bulacan State University, City of Malolos, Bulacan, Philippines

DOI:

https://doi.org/10.69569/jip.2026.416

Keywords:

Human capital, Labor market, RStudio, Time series, Workforce

Abstract

Government expenditure on education plays an important role in developing human capital by supporting the knowledge, skills, and competencies needed to participate in the labor market and support long-term economic development. This study examines the relationship between government expenditure on education and the unemployment rate in the Philippines. Using a correlational research design, the study analyzed secondary annual data obtained from the World Bank to examine the relationship between these economic variables over time. Ordinary Least Squares (OLS) regression was employed to determine whether a statistically significant relationship exists between government expenditure on education and the unemployment rate. The findings revealed a significant inverse association between government expenditure on education and the unemployment rate in the Philippines, indicating that higher levels of government expenditure on education were associated with lower unemployment rates during the period examined. However, this relationship should not be interpreted as evidence of a direct causal effect, as other economic and structural factors may also influence unemployment. The findings suggest that sustained investment in education may be associated with favorable labor market outcomes and can provide useful evidence for policymakers in considering education as part of broader strategies for human capital development and employment.

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Published

2026-09-23

How to Cite

Nicdao, R. L., Samson, H. M., Diaz, J. A., Apostol, N. M., Dail, A. E., Garcia, J. A., & Sarmiento, A. G. (2026). The Impact of Government Expenditure on Education on the Unemployment Rates in the Philippines from 1991 to 2024. Journal of Interdisciplinary Perspectives, 4(10), 413–421. https://doi.org/10.69569/jip.2026.416

Issue

Vol. 4 No. 10 (2026): Volume 4 Issue 10

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Articles

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