May 21, 2004
TF! Editorial Comment: The growing phenomenon of international migration has brought both benefits and costs. In the Philippines, remittances from overseas contract workers (OCWs)play a major role in the economy. But as an increasing percentage of OCWs are women, issues of worker protection and the impacts on children left behind will become more urgent. The article below surveys the terrain of this social phenomenon that shows no signs of slowing down.
The terrain of the overseas labor market has changed, from gender to skills. Women are increasingly dominating the sector, and the demand for professional and technical workers is growing.
Data from the Philippine Overseas Employment Agency (POEA) show that, in 1992, newly hired females accounted for just 50 percent. By 2003, their share had gone up to 70 percent.
In the past 10 years, higher-paying jobs have overtaken labor-intensive work. Production workers, such as construction workers, factory laborers, plumbers, and welders used to account for 37 percent of the total number of deployed workers in 1992. A decade after, in 2002, their share shrunk to 24 percent.
Service workers, mainly domestic helpers, inched up from 32 to 34 percent in the same period. On the other hand, professional and technical workers, such as nurses, engineers, teachers, choreographers, and dancers improved from 28 to 35 percent. Production workers are predominantly male, while service, professional, and technical workers are mostly female.
Under President Arroyo, the policy is to maintain and expand existing markets, and at the same time look for new markets.
The OFWs’ dollar remittances are a major driver of the local economy. In the first quarter of 2004, the amount reached US$1.92 billion, up 4.35 percent from $1.84 billion in the same period last year. Last year, remittances reached an all-time high of $7.6 billion, a 5.5 percent increase over the $7.2 billion realized in 2002. These figures represent just the funds coursed through banks and other legitimate channels.
Economists attribute gross domestic product (GDP) growth in 2002 and 2003 to buoyant consumer spending fueled by money sent home by OFWs. Remittances account for 10 percent of the GDP. These are considered the biggest single source of foreign capital and are credited for restraining the decline of the peso’s value against the dollar.
The number of departing OFWs is staggering. In 2003, 868,000 fresh or re-hired OFWs left the country. This means about 2,400 OFWs leave daily. In 1984, deployments reached only 350,000, but over the next two decades, the number grew by an average of 30 percent every five years.
Today, the country has around 7.5 million OFWs. The figure does not include undocumented workers and those who have stayed on after their contracts expire. Filipino workers are scattered in some 190 countries.
Saudi Arabia remains the top employer although its share has diminished in the past two decades. It used to have 58 percent of OFWs in 1985. The 169,000 OFWs working there now account for only 28 percent.
Domestic helpers who have gone to Hong Kong and the increasing number of entertainers going to Japan have eclipsed the number of laborers going to Saudi Arabia. When SARS broke out in Hong Kong and other parts of Asia last year, domestic helpers and nurses trooped to Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait. Last year, more than 100,000 OFWs went to Middle East countries.
Matured markets are being mined for other job opportunities. The US, which has become stringent with employing Filipino nurses, may need teachers soon, a POEA official told NEWSBREAK. Singapore will need more nurses late this year to early next year.
Other markets are being considered. The POEA official said opportunities for health workers are being checked with governments or companies in Slovenia, Australia, and New Zealand. Hotel and tourism services may soon be in demand in Croatia, the United Kingdom, Ireland, and Macau. Kazakhstan, Taiwan, Papua New Guinea, Qatar, UAE and Saudi Arabia need manpower for the oil, energy, and construction sectors.
Other prospects, like health care for the aged in Japan, are unpromising for lack of market access.
A POEA memo says job prospects for caregivers in Canada, the most favored destination, are not as bright as before. It accounts for only 2.2 percent of the 7,782 currently approved job orders. Almost 60 percent of the job orders come from Taiwan, Israel, and the United Kingdom.
Other developing countries, such as Indonesia, India, Bangladesh, Vietnam, and Mexico are actively supplying labor to the same markets served by the Philippines. Their advantage is that they are willing to receive less pay. It cannot be determined yet if they are eating into our market. Anecdotal evidence, however, shows a preference for Filipinos because of their proficiency in English and good work ethic.
But such preference may not last long. The competitors are said to be honing their communication and other skills.
The Philippines has to find ways to keep its competitiveness. One is to improve OFW quality. English proficiency is eroding. Proof: declining results in English achievement rates in the national assessment tests for elementary (47.7 percent in 2003 from 49.1 in 1997) and high school (47 from 51 percent) graduates. Another proof: only half of the candidates pass the board exams for nurses.
Richard Cruz, a professor at the Asian Institute of Management, said the quality of education must be upgraded.
Businessman Antonio Herbosa said the government should identify long-term global demands so that we can easily respond to a host country’s requirements.
Touted as heroes, overseas Filipino workers will no doubt continue to hold a special place in government officials’ rhetoric. But keeping them in demand and competitive should be a special concern of these officials.
By Lala Rimando
