BY THE NUMBERS: Overseas Filipino workers

May 25, 2018 | 4:52 pm https://www.bworldonline.com/by-the-numbers-overseas-filipino-

workers/

HIGHLIGHTS: 

● Females account for 53.7% or 1.26 million of the total OFWs, higher than males (at
46.3%), according to a survey conducted by the Philippine Statistics Authority between
April and September 2017.

● 59% or 740 thousand of which were engaged in elementary occupations that include
domestic, hotel and office cleaners and helpers.

● Service and sales workers comprise the second largest group of female OFWs with
20% share, numbering 250 thousand.

● 9% or 113 thousand are working professionals while Filipinas with managerial

positions abroad are estimated at 11 thousand, with 0.9% share. — Jochebed B.
Gonzales and Lourdes O. Pillar
What you need to know about overseas Filipino workers

December is the 'Month of Overseas Filipinos'. Do you know enough about our
country's 'bagong bayani'?

Jodesz Gavilan
@jodeszgavilan
Published 1:32 PM, December 05, 2015
Updated 2:33 PM, December 19, 2016
https://www.rappler.com/newsbreak/iq/114549-overseas-filipino-workers-facts-figures

BAGONG BAYANI. The Filipinos working abroad contribute so much to the country and
not just to their families. Graphics by Alyssa Arizabal and Raffy De Guzman

MANILA, Philippines – The sacrifices overseas Filipino workers (OFWs) make just to
provide a better life for their families earned them the title of the nation’s bagong
bayani (new heroes).

In recent years, the improvement of the economy often attributed to their remittances
further cemented their mark in the Philippines. (INFOGRAPHIC: Getting to know the
OFWs)

To recognize their invaluable contribution to the Philippines, December each year is

marked as the Month of Overseas Filipinos through Proclamation No. 276 signed by
President Corazon Aquino in 1988.

Here are important facts about the Philippines’ bagong bayani:

1. Number of OFWs deployed are increasing each year.

According to the Philippine Overseas Employment Administration (POEA), there were a
total of 1,844,406 OFWs in 2015 – 1,437,875 land-based and 406,531 sea-based.

Data over the years suggest that there is an increasing trend in the number of deployed
OFWs.

Deployed OFWs
Create line charts
When it comes to land-based workers, compared to new hires, there are more rehires –
OFWs signing another contract with, or returning to, the same employer.

However, the number of new hires increased in 2015 from 2014, while rehires declined
within the same period.

2014 2015

Rehires 943,666 922,658

New hires 487,176 515,217

There are slightly more female OFWs than males, results of the 2014 Survey on
Overseas Filipinos by the Philippine Statistics Authority (PSA) revealed. However, male
OFWs are comparatively older than females.

At least 43.9% of OFWs come from only 3 regions in the Philippines.These are Region
IV-A with 17.9%, Region III with 15.5%, and the National Capital Region with 10.5%.

Region VIII, meanwhile, had the least number of OFWs in 2014 with only 1.1%.

2. Saudi Arabia is still top OFW destination in the world.

POEA data show that for over 5 years, the highest number of OFWs was deployed in
Saudi Arabia, followed by the United Arab Emirates.

In 2015, most of the countries belonging to the top 10 destinations of OFWs were in the
Middle East and Southeast Asia.
The start of migration to the Middle East dates back to the early 1970s when countries
rich in oil resorted to recruiting “guest workers” from other countries – including the
Philippines – to work on infrastructure projects, among others. (INFOGRAPHIC: A
history of migration)

In 1975, President Ferdinand Marcos implemented the so-called “Development

Diplomacy” which saw the influx of Filipinos deployed abroad – mainly to the Middle
East.

Decades later, countries located in this region still belong to the list of top destinations
with 885,541 OFWs.

Destination Number of land-based OFWs

Middle East 913,958

Asia 399,361

Europe 29,029

America 17,234
 Africa 18,226

Oceania 18,850

Trust territories 4,777

3. OFW remittances boost PH economy.

The National Economic and Development Authority (NEDA) in 2012 said that the

Philippines cannot do without the cash remittances from OFWs. This is true as cash
sent to the country by OFWs, according to the World Bank, is a “key factor” for the
resilience of the Philippines. It has been able to withstand recession amid the economic
crises of the previous years.

According to the Bangko Sentral ng Pilipinas (BSP), OFW cash remittances from
January to August in 2015 reached $16.21 billion (P764 billion)*.

In 2014, personal remittances from OFWs hit almost $24 billion (P1.178 trillion). The
major sources were the United States, Saudi Arabia, the United Arab Emirates, the
United Kingdom, Singapore, Canada, Japan, and Hong Kong. (READ: Which countries
sent the most OFW remittances?)

The results of the PSA survey found that 64% of OFWs send money through banks,
while the rest prefer their own agencies, door-to-door delivery, or friends or co-workers
vacationing in the Philippines.

The same survey said the average cash remittance per OFW is P65,000 ($1,378). Two
in every 5 OFWs are still able to have savings beyond the money they send back to
their families.

4. Most of new hires in 2014 were household service workers.

There are at least 7 major occupational groups of Filipinos deployed abroad and these
are:

1. professional, technical, and related workers

2. services and sales workers
3. elementary ocupations
4. craft and related trades workers
5. plant and machine operators and assemblers
6. clerical support workers
7. managers
Several type of jobs are under these groups, according to the POEA.

In 2015, at least 183,000 newly-hired OFWs were household service

workers. Manufacturing labourers placed second with 41,038 workers.

OCCUPATIONAL CATEGORY NUMBER OF OFWS

Household service workers 194,835

Manufacturing Labourers 41,038

Nursing Professionals 22,175

Waiters 18,352

Cleaners and helpers in offices, hotels and others 14,116

Home-based personal care workers 10,181

Welders and flamecutters 8,156

 Civil engineering labourers 7,286

Plumbers and pipe fitters 6,629

Building construction labourers 5,870

5. The number of OFWs in jail is increasing.

There were a total of 5,478 OFWs jailed in 2014, according to the annual

accomplishment report of the Department of Foreign Affairs (DFA). The latest available
figures are 2,324 higher than 2013's 3,154.

The countries where most OFWs are jailed are Malaysia and the Gulf countries.

The DFA added that it closely monitored 1,288 drug smuggling cases in 2013 through
its Task Force Drug Couriers and other law enforcement arms in the Philippines and
abroad.

Empowering OFWs

Beyond these figures, however, lies the undeniable truth that Filipinos face a lot of
challenges as they seek a better opportunity abroad.

Some were exposed to violence from abusive employers,

exploitation, incarceration which sometimes leads to death sentences, and
worst, death itself.

But amid hardships are the efforts to make things better: OFWs helping each other,
several non-governmental organizations acting as support groups, and an entire nation
seeking to save a fellow Filipino.

As the country continues to laud its citizens who seek greener pastures abroad,
overseas Filipino workers should be prioritized through policies and programs that can
adequately protect them. – with reports from Don Kevin Hapal/Rappler.com

The changing face of the OFW in UAE: Why businesses should pay attention

By: Junie S. del Mundo - @inquirerdotnet

Philippine Daily Inquirer / 04:04 AM October 28, 2019
https://business.inquirer.net/282086/the-changing-face-of-the-ofw-in-uae-why-businesses-
should-pay-attention

Home is where the heart is, and for many of our kabayans, the United Arab
Emirates (UAE) has become home—providing a safe space that allows them to
pursue their dreams.

Today, our typical kabayan in the UAE is a well-educated, highly skilled

professional working in a technical or creative field. He is full of hope, vibrant and
enjoying life at the same time—a far cry from the stereotype low-skilled worker of
our yesteryears.

ADVERTISEMENT

Indeed, the face of the Filipino worker in the UAE is continuously undergoing a
tremendous transformation. Where once we knew overseas Filipino workers
(OFWs) as low-skilled workers destined to a life of manual labor, today’s Filipino
workers in the Emirates have transcended boundaries, breaking stereotypes and
creating a strong presence in almost every sector, such as information technology,
the sciences, business, the arts. In fact, a noted few are even making waves globally
in creative fields, such as fashion and furniture design.

Today, no one questions that Filipinos in the UAE are among the most skilled,
dynamic and prosperous—demonstrating not just their highly valued skills but
also distinctive Filipino traits: caring, collaborative, creative and colorful.

In fact, Filipino workers have long become deeply interwoven into the economic
and cultural fabric of the UAE. It is therefore not a surprise that the Filipino
community in the UAE is very engaged, increasingly wealthy and is actively
looking for ways to help support the diverse, tolerant and multicultural country
that they now proudly call home.

In our quest to better understand Filipinos in the UAE and hopefully, guide
institutions and companies to see them not only as consumers but as powerful
allies with unique aspirations and dreams, EON has released a pioneering research
called, “EON Insight: Focus on the Filipino in the UAE.”
The report validates the observation that the narrative of the Filipino overseas
worker has changed, a transformation that has taken place because the UAE
provides them the optimal environment combining economic opportunity,
tolerance and the space to celebrate their authentic selves.

Beyond peering into the thinking and aspirations of Filipinos in the UAE, the report
recognizes the rising purchasing power of the sizeable Filipino community, which
UAE companies can no longer afford to ignore. Together, these individuals are a
significant and important player—ready to purchase their own homes, build
smarter relationships with financial services companies, and explore the world of
entrepreneurship.

This narrative is fleshed out in the report’s five key findings, as follows:

First, the UAE is a highly attractive destination for professional Filipinos due to the
economic opportunities it provides and its tolerant open society. The 2019
Philippine Trust Index showed that the UAE is Filipinos’ top work destination in
the Middle East. Highly skilled Filipinos are now represented across all industries
in the country. In fact, 64 percent of Filipinos in the UAE are college graduates and
6.7 percent hold postgraduate degrees.

No doubt, the UAE’s unique mix of policies, programs and initiatives, as seen in its
strong infrastructure, economic development agenda centered on diversification,
and extensive government support for entrepreneurs, makes it a suitable
environment for Filipinos ready to spread their wings professionally.

ADVERTISEMENT

Second, the Filipino community is an ever-growing contributor to the economic

diversification and growth of the UAE economy, with 62 percent of the Filipinos
surveyed working in sectors that contribute heavily to the UAE’s economic
diversification and expansion.

The top five sectors they work in are architecture, engineering and construction
(17 percent), tourism and hospitality (16 percent), customer service (13 percent),
health and medical fields (10 percent) and marketing and advertising (8 percent).
Among the participants, 37 percent earned at least AED 8,000 (about P111,000) a
month with 20 percent earning AED 13,000 (P181,000) a month. In view of their
growing disposal incomes, Filipinos in the UAE are spending on themselves, with
48 percent going to the mall at least once or twice a month, with 45 percent willing
to spend up to AED 50 (about P700) for one meal and 16 percent willing to spend
more than AED 80 (P1,100). The Philippines also benefits from their relatively
higher income: in 2017, the UAE surpassed Saudi Arabia in becoming the second
top source of remittances, coming just after the United States.

Third, the Filipino community has a long-term commitment to the UAE and is
increasingly looking to invest and build deeper interlinked roots in the Emirati.
More than 40 percent of Filipinos surveyed have been living in the UAE for two to
five years, while 37 percent have been living in the UAE for more than six years.
Over 30 percent say they intend to stay in the UAE for another three to five years.

Fourth, freedom to worship freely and in peace is a major draw for the Filipino
community. In fact, a number of them spend their free time participating in
church activities, such as Bible studies and community service programs.

Fifth, positive mentions of UAE by the Filipino community on social media have
helped make the UAE a top 10 destination for travelling Filipinos. Filipinos are
beginning to see the Emirates as a place to visit and possibly work or live in, thanks
to these social media posts. In fact, Filipino influencers are making their mark in
the UAE by creating well-curated content that is relevant to their fans and
following, and are performing well in terms of engagement and reach. This shows
that Filipinos are an untapped marketing force in the UAE as they are constantly
connected online. Their social influence and digital behavior are perfect vectors to
promote brands, services and causes.

For sure, there are many opportunities waiting to be tapped in the burgeoning
Filipino market in the UAE, and these headline findings attest to this. There are no
limits to the products and services that our kabayans may need, and those
businesses that can tap into their needs and wants stand to gain much in the
process. With creativity and resourcefulness, businesses can find ways to grow
with this market, as the Filipino OFWs’ narrative continues to evolve.

More than any other time in history, it is time to set up Filipinos for success and
break down the walls that keep them from realizing their full potential. The term
“OFW” has outlived its purpose and should be reframed to shine a light on the
contributions of the Filipinos in the countries where they are. “Global Influential
Filipino Talents” is a reframing that captures the new narrative of the Filipino
abroad—their creativity, role as social glue, and expertise act as gifts they
generously share with the world.

It nudges all spectators, kabayans included, that when introduced to a setting that
allows for authenticity and economic opportunity, Filipinos have the remarkable
ability to shine, bright enough to illuminate even the darkest shadows of our past.
The lesson is clear and approaching at breakneck speed—for fellow Pinoys, it is
time to raise Pinoy pride and help surface the success stories that fall into the
cracks; and for everyone else, it is time to get with the program.

Read more: https://business.inquirer.net/282086/the-changing-face-of-the-ofw-in-uae-why-
businesses-should-pay-attention#ixzz66vuL02we
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

Reintegration Services for Overseas Filipino Workers

https://www.dole.gov.ph/reintegration-services-for-overseas-filipino-workers/

Implementing agency:

National Reintegration Center for OFWs

DOLE Regional Offices
Overseas Workers Welfare Administration
The DOLE’s Reintegration Services is a package of interventions and mechanisms
developed and implemented social partners to facilitate the productive return of the
OFWs to their families and communities upon their completion of overseas
employment.  It provides the OFWs and their families with opportunities for accessing
projects and services that would help them mitigate the social cost of migration and
cushion the impact of forced repatriation due to unexpected events. It also aims to
maximize the gains of overseas employment through local employment/re-employment
or business/enterprise development facilitation.

Services include programs such as:

1. Psycho-social component which consists of capacity-building through assistance

in community organizing and maintaining OFW Family Circles (OFCs), and
services like psycho-social counseling, stress debriefing, values formation and
financial literacy;
2. Livelihood component through:
 Balik-Pinas, Balik-Hanapbuhay Program, a non-cash livelihood
support/assistance intended to provide immediate relief to returning member
OFWs, active or non-active, who are displaced from their jobs due to war/political
conflicts in host countries or policy reforms controls and changes by the host
government or are victims of illegal recruitment and/or human trafficking or other
distressful situations.
 Balik-Pinay, Balik-Hanapbuhay Program, provision of livelihood skills training
and distribution of starter kitsto enable women OFW returnees to start and to
operate livelihood undertaking for self-employment. Priority is given to women
OFWs who are displaced by the hostilities and conflicts in their host country, or
victims of illegal recruitment and trafficking and other distressed and displaced
women household service workers.
 Financial Awareness Seminar (FAS) and Small Business Management Training
(SBMT),training intended to assist OFWs and their families with financial literacy
relative to their overseas employment and to encourage them in putting up a
small business enterprise for self-employment;
 Livelihood Development Assistance Program (LDAP), provide grants for
livelihood assistance to undocumented returning OFWs thru livelihood starter
kits; and

Education and Livelihood Assistance Program (ELAP), scholarship for the dependents
of OFWs who were active OWWA members at the time of death.  Only one child,
usually the eldest child of member-OFW, is given scholarship grant (P5,000 for
elementary, P8,000 for high school and P10,000 for college).  The surviving spouse, if
the OFW member was married or the mother/father if the OFW was single, will also
receive a livelihood assistance of P15,000.00.
The Philippines: Beyond Labor Migration, Toward Development and (Possibly) Return

JULY 12, 2017

P R OF ILE
By Maruja M.B. Asis
https://www.migrationpolicy.org/article/philippines-beyond-labor-migration-toward-
development-and-possibly-return

In the Philippines, a deeply rooted and pervasive culture of migration has made moving
abroad common, acceptable—even desirable—as an option or strategy for a better life.
For decades, sizeable numbers of Filipinos have left home in search of permanent
settlement or temporary work overseas, trends long attributed to the fragile economy
(and exacerbated by frequent natural disasters). Today, more than 10 million Filipinos—
or about 10 percent of the population—are working and/or living abroad. While a
markedly improved economic situation in recent years has not diminished the outflows,
it has allowed the country to move beyond its longstanding labor migration policy to
incorporate migration into long-term development planning and strengthen the return
and reintegration of overseas Filipino workers (OFWs).

When the Philippines launched an overseas employment program in the 1970s, the
thrust was finding labor markets: The state not only promoted Filipino workers to the
oil-rich but labor-short Gulf Cooperation Council (GCC) countries, it also sold these
uncharted Middle East destinations to Filipinos. By the latter half of the 1970s, as
deployment and competition with other origin countries increased, surfacing labor
migration problems (including poor working conditions and abuse by employers)
prompted the government to address migrant welfare and protection. As destinations
diversified and women joined the labor migration flows, the protection aspect assumed
more importance.

The government subsequently developed a number of institutions, laws, and policies

aimed at enhancing the protection of OFWs and their families, spurred on by civil-
society advocacy. This dual approach of facilitation and protection contributed to
making the Philippines a major source country of workers and talent for the global labor
market, while also providing protection to OFWs. The “success” of this approach,
however, may have trapped the Philippines into complacency: Large, steady flows of
remittances have become the country’s lifeline. The Philippines ranks third after India
and China as major recipients of remittances. In 2016, the country received US $26.9
billion in money transfers, according to the Central Bank of the Philippines. There are
concerns that reliance on remittances may have delayed the implementation of needed
reforms.  

Recent attempts to link migration policies with development policies demonstrate a

remarkable shift in governance in the Philippines, earning positive reviews from the
 international community. After several boom-and-bust decades, in the 2000s the
Philippine economy entered a period of impressive growth: Between 2011 and 2016,
gross domestic product (GDP) grew by an average of approximately 6 percent yearly,
and the economy proved resilient through political crises and transitions. Nonetheless,
the positive economic news has not slowed or halted emigration. This is likely because
Filipinos have more resources to migrate, and though the economy has grown,
unemployment has yet to be tempered. Thus, sustainable development that provides
decent work opportunities continues to elude the Philippines. This country profile
examines the evolution of migration policymaking and trends over the past several
decades and through the present administration of President Rodrigo Duterte.

Background: The Centrality of the United States in Early Filipino Migration

After more than three centuries of Spanish colonial rule, the Philippines became a U.S.
territory as a result of the Spanish-American War in 1898. For much of the 20th
century, "international migration" for Filipinos meant moving to the United States and
its Pacific territories.

The first batch of Filipino workers arrived in Hawaii on December 20, 1906 to work on
sugarcane and pineapple plantations. More workers, mostly single men, followed;
others left Hawaii to work in agriculture in California, Oregon, and Washington, or the
salmon canneries of Alaska. On the mainland, low-wage service work in the cities
provided income between agricultural seasons or when other jobs were not available.
Some 4,000 Filipinos were employed in the merchant marine, but this employment
possibility ceased with the Merchant Marine Act of 1936 requiring the crew of U.S. flag
vessels to be at least 90 percent American citizens.

Box 1. Definitions
Overseas Filipinos is the term encompassing all Filipino migrants, whether permanent or
temporary, legal or unauthorized.
Overseas Filipino Workers, or OFWs, represent a subset of Overseas Filipinos, and are
temporary migrants. The OFW term is commonly used, a further sign of the pervasive
role that labor migration occupies in Philippine society.
The Commission on Filipinos Overseas includes the following categories of migrants in
its stock estimates:

 Permanent Migrants - Filipino immigrants and legal permanent residents abroad,

Filipino spouses of foreign nationals, Filipinos naturalized in their host country, Filipino
dual citizens, and their descendants.
 Temporary Migrants – Filipinos whose stay overseas, while regular and properly
documented, is temporary, owing to the employment-related nature of their status in
their host country. Include land-based and sea-based Filipino workers, intracompany
transferees, students, trainees, entrepreneurs, businessmen, traders, and others
whose stay abroad is six month or more, and their accompanying dependents.
 Irregular Migrants - Filipinos who are not properly documented or without valid
residence or work permits, or who may be overstaying their visa.
Estimates place the number of Filipino workers coming to the United States, chiefly to
Hawaii, between 1906 and 1934 at 120,000 to 150,000. A small number of scholars,
known as pensionados, also migrated to the United States before the 1920s. They were
typically either sponsored by the U.S. government or by missionary-related programs.
Some returned and assumed important positions in Filipino society, while others
remained in the United States.
Because the Philippines was a U.S. colony, the movement of Filipinos to the United
States was considered internal migration. As U.S. nationals, Filipinos could enter and
leave the country freely, but could not access citizenship. It was not until the passage of
the 1934 Tydings-McDuffie Law, which provided for the granting of Philippine
independence within ten years, that the Philippines became subject to immigration
quotas, and Filipinos in the United States became aliens. The law limited the Philippines
to 50 visas per year, and migration dropped off dramatically. But even so, there was an
exception clause: In case of a labor shortage, the governor of Hawaii was authorized to
hire Filipino workers. World War II intervened and further migration to the United
States stalled, until the Philippines became independent in July 1946.

Following passage of the 1965 Immigration and Nationality Act, which struck down
nationality-based restrictions, Filipino immigration grew and diversified. Other
countries of settlement also dismantled their pro-European immigration policies in the
1970s, paving the way for Filipinos to enter Canada, Australia, and New Zealand under
family- or skills-based provisions. The Philippines eventually became one of the top ten
origin countries in these traditional immigration destinations.

This permanent migration, however, was overshadowed by the larger and thornier
temporary labor migration that started in the 1970s. Although the Commission on
Filipinos Overseas (CFO) estimates the stock of permanent migrants (which includes
Filipinos born overseas; see Box 1) is larger than that of temporary migrants, the
country’s migration policies have focused on the significant annual outflows of
temporary workers, their distribution throughout the world, and the myriad related
issues.

Becoming a Source Country of Workers

A number of factors led to the ascent of the Philippines as a major labor exporter in Asia
and worldwide. When large-scale labor emigration began in the 1970s, the push factors
—already quite strong—were worsened by the 1973 oil crisis. Economic gains could not
keep pace with population growth, and the country was hard pressed to provide jobs and
decent wages while grappling with severe balance of payment problems.

At the same time, the GCC countries needed workers to realize their ambitious
infrastructure projects. With supply and demand converging, the Philippines was ripe
for large-scale labor migration, an opportunity the government of Ferdinand Marcos
recognized. In 1974, the Labor Code of the Philippines established the framework for
what became the government's overseas employment program.
The Philippines' foray into organized international labor migration was supposed to be
temporary, lasting only until the country recovered from its economic problems.
However, the ongoing demand for workers in the GCC countries and the opening of new
labor markets in other regions, especially in East and Southeast Asia, fueled further
migration. On the supply side, the push factors did not abate. Lack of sustained
economic development, political instability, unabated population growth, persistent
unemployment, and low wages continued to compel people to head abroad.

The flow of OFWs, numbering a few thousand per year in the early 1970s, surged past 1
million beginning in 2006 (see Figure 1). In 2015 alone, more than 1,844,000 Filipinos
worked abroad. The data on deployed workers include seafarers, who account for 20
to22 percent of all OFWs every year. Filipinos dominate the global seafaring industry,
accounting for 25 to 30 percent of the world's seafarers.

Figure 1. Annual Deployment of Overseas Filipino Workers (OFWs), 1975-2015

Source: Philippine Overseas Employment Administration (POEA), “Compendium of OFW

Statistics,” accessed July 6, 2017, available online.
As of December 2013, the stock of overseas Filipinos totaled slightly more than 10
million, including some 4.9 million permanent settlers (64 percent of whom are in the
United States), about 4.2 million temporary migrants (mostly labor migrants, or OFWs,
with Saudi Arabia hosting close to 1 million), and an estimated 1.2 million unauthorized
migrants worldwide (primarily in Malaysia and the United States).

Filipinos are present in the far reaches of the globe, mostly because of work. Although
the destinations of OFWs have diversified, to this day, the Middle East still receives the
largest share, with 64 percent heading to the region in 2015, followed by Asia with 28
percent (see Figure 2). In 2015, six of the top ten destinations for both new hires and
rehires were in the Middle East (Saudi Arabia, United Arab Emirates, Qatar, Kuwait,
Oman, and Bahrain), and the remainder were in Asia (Singapore, Hong Kong, Taiwan,
and Malaysia).

Figure 2. Deployment of Land-Based OFWs by Region, 2015

Source: POEA, “Compendium of OFW Statistics.”
Filipino women are very visible in international migration. They not only compose the
majority of permanent settlers, i.e., as part of family migration, but are as prominent as
men in labor migration. In fact, since 1992, females have generally outnumbered men
among the newly hired land-based workers legally deployed every year. In 2015,
domestic work was the top occupation for new hires, at 38 percent.

While the demand for domestic workers has long been the main driver of female
migration from the Philippines and Asia in general, until 2005, the demand for
entertainers, mostly in Japan, also fueled this migration. With work in the domestic and
entertainment sectors unprotected and prone to abuse, the safety and well-being of
women migrants became a significant concern. Entertainer migration was particularly
controversial and stigmatized because of perceptions that women ended up in the sex
industry. From a deployment to Japan of tens of thousands of Filipino entertainers
annually, the numbers dropped sharply in 2005 following Japan’s decision to adopt
more stringent requirements for foreign entertainers. Likewise, the significance of
domestic worker migration was a major push for the Philippines to ratify the 2011
Convention on Domestic Workers, which recognizes domestic work as labor that must
be protected.

Beyond Labor Migration

The growing volume of labor migration from the Philippines has increased the incidence
of problems and challenges faced by migrants and their families. The participation of
private recruitment agencies in matching workers with employers abroad has
contributed to the challenges. The problems that emerged in the 1970s remain the same
today: illegal recruitment, contract substitution, illegal placement fees, long working
hours, and no days off (in the case of domestic workers), among others.  

Over the years, institutional and policy development in the Philippines was geared
toward worker protection. The 1995 Migrant Workers and Overseas Filipinos Act, a
landmark law, aimed to provide protection to OFWs from predeparture through arrival
and return. The focus on protection shifted during the presidency of Gloria Macapagal-
Arroyo (2001-10), when the government for the only time to date set a target for the
deployment of workers. The Medium-Term Philippine Development Plan 2004-2010 set
a goal of sending 1 million workers overseas every year.
This thrust was reversed by the subsequent administration of Benigno Aquino III (2010-
16). His social contract with the Filipino people included the goal of moving “from a
government that treats its people as an export commodity and as a means to foreign
exchange, disregarding the social cost to Filipino families, to a government that creates
jobs at home, so that working abroad will be a choice rather than a necessity; and when
its citizens do choose to become OFWs, their welfare and protection will still be the
government’s priority.”

This stated desire to a return to welfare and protection was accompanied by legislative
and executive actions to further regulate labor migration and expand services for OFWs.
Soon after Aquino took office, he signed Republic Act (RA) 10022 into law, aiming to
further strengthen measures to protect migrant workers, their families, and other
overseas Filipinos in distress. Among the law’s key provisions is the restriction of
deployment only to countries that have been certified as safe and offering protection.
Implementation-wise, certifying a country as safe or unsafe can be politically and
diplomatically sensitive, and deployment bans (even for good reasons) have not proven
effective in stopping migration. The law also mandates recruitment agencies or
employers to provide OFWs with compulsory insurance to cover accidental death or
disability, among other protections.

The Philippines Overseas Employment Administration (POEA) also amended

recruitment industry regulations, resulting in the 2016 Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Seafarers, and a separate
set of rules and regulations applying to land-based workers. These measures were aimed
at curbing the illegal practices of recruitment agencies, such as exorbitant placement
fees and contract substitution, which negatively impact migrants.

The welfare and protection of OFWs received another boost in 2016 with RA 10801,
which launched a new charter bolstering the Overseas Workers Welfare Administration
(OWWA). This agency’s mandate is to provide programs and services for the welfare of
OFWs and their families, and to manage the funds from member contributions and
interest from investments. The contributions come from the OWWA membership fee of
US $25 per contract (which employers or recruitment agencies are supposed to cover
but instead pass on to OFWs).  A number of nongovernmental organizations had
criticized the government for not financially contributing to OWWA operations. The
2016 OWWA charter changed this, stating that the national government would allocate
a regular budget for the operations and personnel expenses of the agency, which would
free up more funds for programs and services. The law also identified the reintegration
program as a core function for OWWA, shifting responsibility from the Department of
Labor and Employment.

The government’s antitrafficking measures also strengthen the protection environment

(although trafficking can also occur internally). The Expanded Anti-Trafficking in
Persons Act of 2012 (RA 10364) amended the 2003 Anti-Trafficking in Persons Act to
enhance concerted efforts to combat trafficking and increase penalties for violators.
Those who are identified as victims of trafficking can access support and assistance.
 Growing marriage migration also has caused anxieties about the welfare of women who
marry foreign nationals. A new law (RA 10906) strengthening the Anti-Mail Order Bride
Act of 1990 was enacted in 2016. Unlike the earlier law, the amended version applies to
Filipino men as well as women (though marriage migrants are overwhelmingly female),
and takes into account trafficking and new developments, such as online transactions.
The law mainly prohibits commercial or for-profit matching or offering of Filipinos to
foreign nationals through the mail, in person, or over the Internet, for the purpose of
marriage or common law partnership.

Linking Migration and Development

Beyond the now-traditional facilitate-and-protect policy framework, migration
governance in recent years has also started to make inroads on migration and
development. The global discussion on the migration and development nexus may have
influenced reflections in the Philippine context. A 2007 conference and a 2010
comprehensive study on migration and development in the Philippines brought to the
fore five key observations:

1. Migration policies in the Philippines were primarily focused on temporary labor

migration.
2. The development impact of migration was mostly discussed in terms of economic
benefits, particularly remittances.
3. The social costs of migration to families were often mentioned.
4. National, regional, and local development plans did not take international
migration into consideration.
5. At the regional and local levels, there were few migration institutions.
In other words, the migration and development nexus was more of a disconnect: Except
in the case of remittances, policies in these areas were not linked, and the national
framework was out of sync with local frameworks. The Central Bank of the Philippines
had taken the lead on improving the remittance environment, likely driven in part by
the enormous importance of these money transfers as well as the relative ease of
monitoring formal remittances, compared to other impacts such as social costs.
However, other migration and development initiatives were not as persistently pursued,
implemented, or monitored.

Despite this implementation gap at home, the Philippines has become a global leader in
discussions on migration and development. It has actively participated in the Global
Forum on Migration and Development, and hosted the second such forum in 2008.

These development-related discussions have also expanded the domestic migration

conversation to encompass the broader population of overseas Filipinos, not just OFWs.
At the start of the Aquino administration in 2010, the CFO, created in 1980 to look after
the concerns of permanent migrants and nurture their links to the Philippines,
embraced the task of “Responding to the Challenges of Migration and Development.”
The commission began more actively reaching out to the Filipino diaspora through
global and regional summits and developed a one-stop online portal for diaspora
engagement, BaLinkBayan.
CFO also lobbied and cooperated with the National Economic Development Authority
(NEDA), the key government agency responsible for development planning and policy,
to integrate international migration issues into the Philippine Development Plan 2011-
16. Sixty provisions on migration and development appeared in seven out of nine
chapters of the plan. Further, in 2014, NEDA created an interagency structure to
promote attention to migration and development and improve coordination among
migration-related agencies and other government agencies.
There has also been movement toward involving local governments in developing
institutions, policies, and programs on migration and development, including under
Phase II of the Joint Migration and Development Initiative (JMDI). In the past, local
officials tended to think of overseas employment as a national government concern and
responsibility. While few local governments have established migration centers, the
POEA and OWWA have forged partnerships with local governments to enhance the
reach of their programs and services.

Migration Governance under Duterte: Is Change Coming?

After campaigning on the promise of “change is coming,” Rodrigo Duterte became the
16th president of the Philippines on June 30, 2016, succeeding Aquino. Like Filipinos at
home, those overseas largely voted for Duterte.

A year into the Duterte presidency, his administration has sent mixed signals on how it
will handle international migration. In his first State of the Nation Address in July 2016,
Duterte rattled off a list of migration-related goals, namely to combat human trafficking
and illegal recruiting, provide mandatory financial education to migrants, and
consolidate offices and agencies dealing with overseas Filipinos to more efficiently
respond to their concerns.

The first—waging “war against traffickers and illegal recruiters”—basically continues

predecessors’ protection thrust. Similarly, the nod to financial education for migrants
and their communities was part of the package of migration and development initiatives
in the 2000s.

In its first 100 days, the Duterte administration introduced some immediate moves to
hasten government processes affecting OFWs, including setting up one-stop shop
service centers at the POEA. These centers gather in one location the government
agencies where applicants or overseas workers secure documents needed to process
their papers. Other changes, such as dropping the requirement for vacationing OFWs to
secure an overseas employment certificate and the introduction of an online seafarer
registry, were hailed by OFWs. Discussions are underway to cut through more red tape,
such as extending the validity of Philippine passports from five years to ten years.

However, Duterte’s proposal to create a single department to effectively address various

OFW concerns would be a departure from the multiagency approach that the
Philippines has fashioned over the years.

To Consolidate, or Not To Consolidate?

Duterte’s allies in Congress lost no time in proposing versions of the bill to create a
single migration department. Proponents argue that the proposal is intended to fulfill
Duterte’s campaign promise to better serve OFWs, suggesting a single department
would be more efficient. Civil-society organizations are divided on this proposal.
Opponents argue that the various agencies that cater to different types of overseas
Filipinos and/or have different mandates have already developed competencies to
perform their functions. Rather than create another bureaucracy whose components will
be carved out from existing departments or divisions, opponents argue it would be more
constructive to improve coordination among agencies.

Interestingly, Labor Secretary Silvestre Bello III has a different idea. He sees a
department devoted to OFWs as further institutionalizing overseas employment, which
he claims is the very opposite of what this administration wants. He said, "Our final goal
is to bring them back to the country and we can only do that if we give them decent jobs,
decent pay." However, while the goal of bringing OFWs home one day has been
expressed by all presidents, it has largely been unrealistic.

Duterte Finds Approval Among OFWs

The response of OFWs to President Duterte is one of overwhelming support . In his first
year as president, he made 21 overseas trips, visiting 18 countries and touching base
with Filipinos abroad, who greeted him enthusiastically.

In his visit to Saudi Arabia, Bahrain, and Qatar in April 2017, Duterte stated he was
ready to kneel before OFWs to show his appreciation for their sacrifices in sending
remittances home. Appearing before Filipino communities in these GCC countries, he
repeated his promise to deliver better services through the proposed Department of
Overseas Filipino Workers.

When he met with Filipinos in Japan, the crowd applauded his promise to end the
Filipinos’ search for opportunities outside the country: “I work hard that we will earn
more so that by the time, this is my promise to you and God and to those working
abroad, this will be the last. The next generation of Filipinos will work in the
Philippines. So we will do away with so many things. Corruption, then drugs.”

Indeed, in his visits abroad, Duterte never fails to discuss the central program of his
administration: the war on drugs. His overseas audience sees his hardline stance, which
has received international condemnation, as decisive and the war on drugs as necessary
to rid the country of drug addicts. Since he took office, more than 7,000 alleged drug
users and dealers have died in extrajudicial killings carried out by police or vigilantes,
according to Human Rights Watch. The reactions of Filipinos abroad to the killings,
mostly of poor Filipinos, as well as the disregard for human rights and the culture of
violence that the war on drugs has bred have been muted.

Long-Term Development
Offering another glimpse into how the new administration will address migration, in
February 2017 it approved the Philippine Development Plan 2012-22. The new PDP
builds on the previous development plan, but also situates the development agenda
within the longer-term AmBisyon Natin 2040 (Our Vision 2040; literally, ambition),
which reflects the aspirations of Filipinos for themselves and their country.

This long-term view in the new PDP is novel, as development plans are typically
anchored on the six-year cycle of each administration. The new PDP explains, “As one of
Asia’s better-performing economies today, the Philippines is in a more favorable
position than it has ever been in the last four decades. No longer weighed down by an
unmanageable fiscal deficit and more secure in its political legitimacy, the government
can now afford to think about national goals based on a longer time horizon.” The
Duterte administration’s target is to achieve annual GDP growth of 7-8 percent in the
medium term, and the PDP aims to cut the poverty rate from 21.6 percent to 14 percent
overall, and from 30 percent to 20 percent in rural areas. It also seeks to reduce the
unemployment rate of 5.5 percent by 3-5 percentage points by 2022.

The new PDP gives special attention to overseas Filipinos by incorporating international
migration issues, often referencing migrants directly, throughout. It gives attention to
the special circumstances of migrants and their families, and aims to protect their rights
and improve their well-being, strengthen their engagement in governance, facilitate
their participation in the country’s development, and ensure their smooth reintegration
upon return.

In its chapter on human-capital development, the PDP acknowledges the push factor in
labor migration, noting that “Limited employment opportunities force Filipinos to
migrate by necessity and not by choice.” It points to regional integration initiatives such
as the Association of Southeast Asian Nations (ASEAN) and efforts to strengthen ties
with China and Russia as opportunities to diversify destinations. ASEAN Member
States, notably Singapore and Malaysia, have long been OFW destinations. In the case of
China and Russia, Duterte overtures to these two countries may have played a hand in
identifying them as potential future destinations. For now, these two receive a small
number of Filipino workers, although reports indicate some 200,000 unauthorized
Filipino domestic workers live in China, where they earn a higher income than in Hong
Kong.

Limited employment opportunities also affect higher skilled Filipinos. A study assessing
the country’s innovation found that the supply of STEM (science, technology,
engineering, and mathematics) workers outpaces local demand, which leads to
emigration and underemployment of skilled scientists and engineers. And their
emigration results in brain drain, which deprives the country of human capital
important for development. The PDP calls for strengthening the long-
running Balik Scientist (Return Scientist) Program and similar schemes, and is open to
the idea of tapping foreign experts, including overseas Filipinos, for institutional
capacity building and development expertise.
Since 2016, the National Reintegration Center for OFWs has been conducting
consultations with stakeholders nationwide in preparation for the reintegration summit
that will be held in August 2017. The summit aims to produce thoughtful reflections and
action plans that will respond to the opportunities and challenges that return migrants
carry with them.

Looking Ahead
In the past decade, migration governance in the Philippines has gone beyond labor
migration policies and remittances, making strides toward linking migration policies to
broader development goals. The last two Philippine Development Plans have integrated
migration into national development planning; the government’s key planning agency,
NEDA, has come to appreciate the importance of migration; and a mechanism, the
Subcommittee on Migration and Development, has been established within NEDA to
improve coordination among government agencies and devote more attention to
migration and development.

These are important milestones that need to be fleshed out and sustained over time. At
the local level, mainstreaming and upscaling projects for local institution capacity
building, the setting up of Migration Resource Centers and similar structures in local
government units and integrating migration in local development plans, among others,
have been implemented in selected regional and local governments. In other words, the
groundwork for the expansion of migration policies in the Philippines has been started;
the next task is to keep up the momentum to maximize the development potentials of
migration, while continuing to look out for the well-being of migrants.

Sources
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Bello Says. ABS-CBN News, April 14, 2017. Available online.
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Challenge for the Philippines. In Migration and Development: Perspectives from the South,
eds. Stephen Castles and Raul Delgado Wise. Geneva: International Organization for
Migration (IOM).
Asis, Maruja M. B. and Fabio Baggio, eds. 2008. Moving Out, Back and Up: International
Migration and Development Prospects in the Philippines. Manila: Scalabrini Migration
Center.
Asis, Maruja M. B. and Golda Myra Roma. 2010. Eyes on the Prize: Towards a Migration
and Development Agenda in the Philippines. In Brick by Brick: Building Cooperation
between the Philippines and Migrants’ Associations in Italy and Spain, ed. Fabio Baggio.
Manila: Scalabrini Migration Center.
Battistella, Graziano and Maruja M. B. Asis. 2011. Protecting Filipino Transnational
Domestic Workers: Government Regulations and Their Outcomes. Discussion Paper
Series No. 2011-12. Makati City, Philippines: Philippine Institute for Development
Studies. Available online.
Commission on Filipinos Overseas (CFO). 2017. CFO Statistics on Philippine International
Migration. Manila: CFO. Available online.
---. N.d. BaLinkBayan: Overseas Filipinos’ One Stop Online Portal for Diaspora
Engagement. Accessed May 18, 2017. Available online.
Duterte, Rodrigo. 2016. President Duterte’s First State of the Nation Address. Quezon
City, Philippines, July 25, 2016. Available online.
Garcia, Pia. 2016. Duterte to Filipinos in Japan: One Day You Will Not Have to Work
Overseas. CNN Philippines, October 29, 2016. Available online.
Human Rights Watch. 2017. Philippines: Duterte’s First Year a Human Rights Calamity.
News release, June 28, 2017. Available online.
IOM and Scalabrini Migration Center (SMC). 2013. Country Migration Report: The
Philippines. Makati City and Quezon City: IOM and SMC. Available online.
National Economic Development Authority (NEDA). 2004. Medium-Term Philippine
Development Plan 2004-2010. Pasig City: NEDA.
---. 2011. Philippine Development Plan 2011-2016. Pasig City: NEDA.
---. 2017. Philippine Development Plan 2017-2022. Pasig City: NEDA.
Organization for Economic Cooperation and Development (OECD), and Scalabrini
Migration Center. 2017. Interrelations between Public Policies, Migration and Development
in the Philippines. Paris: OECD Publishing. Available online.
Philippine Information Agency (PIA). 2017. One-Stop Service Center for OFWs
(OSSCO) Now in 15 Locations Nationwide. News release, PIA, January 2,
2017. Available online.
Philippine Migrants Rights Watch (PMRW). 2016. Do We Need a Department of
Migration? Press release, PMRW, September 9, 2016. Available online.
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Statistics: Deployed Overseas Filipino Workers 2014-2015. Accessed May 18,
2017. Available online.
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online.
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People: Benigno S. Aquino III Platform for Government. Accessed May 18,
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Yan, Alice. 2016. Is It Time for China to Open Its Doors to Filipino Domestic Helpers?
South China Morning Post, October 19, 2016. Available online.

OFWs – The Strong Pillars OF The Philippine Economy

September 26th, 2019
https://www.xpressmoney.com/blog/industry/ofws-the-strong-pillars-of-the-philippine-
economy/
Many people in developing countries leave their homes and families to seek employment abroad.
While the pain of moving away from near and dear ones is always there, the world outside often
offers better chances for making a livelihood. Improved working conditions, higher wages, and
an overall enhanced lifestyle are powerful reasons to emigrate.
Such migrants capitalise on the opportunity to move more freely in a globalised world. After
years of working abroad, some even gain citizenship from their adopted countries while others
continue working as expats. Regardless of their nationality or citizenship, a large chunk of the
income they earn flows back to their families in the form of remittances.
Every year high volumes of remittances are sent by millions of Overseas Filipino Workers
(OFWs). Philippines believe its expat population is the country’s top ‘export’. About 10% of the
country’s population works abroad, undeniably a significant portion of the Filipino workforce.
These OFWs transfers money to the Philippines via direct remittances to their family who live in
the home country. There is a heavy dependence on remittances in the Philippines, as the latest
data from 2019 suggests.
In this article, we shall celebrate the spirit and success of OFWs, while also discussing the
question many of us have:

How do OFWs contribute to the Philippine economy?

OFWs make up one of the largest group of expat workers in the world. Although a small nation
in terms of territory and population, when compared to many of its neighbours, the Philippines
stands an impressive third when it comes to inward remittances from across the globe. In this
regard, it is next only to India and China.
The Philippines has a population slightly over 100 million, of which over 5 million were working
abroad. While the US and the middle-eastern countries were traditionally the most favoured by
OFWs, recent trends have shown an inclination towards Scandinavia and Canada owing to their
higher lifestyle index.
As of 2018, a total of USD 25.8 billion was sent home by OFWs. Of this huge amount,
remittances from the US accounted for a whopping $9.6 billion.

Positive effect of OFWS to the economy

Obviously, OFW remittances shape the macroscopic economy of the Philippines. But they offer
many far-felt and deep-rooted microscopic benefits too. OFW remittances still provide the
growth that matters most in the lives of Filipinos. The money goes straight to households, to
relatives, families, and friends – who use them to better their lives to finance food, shelter,
education, and entrepreneurial pursuits.
Money transferred by Filipinos from all over the world accounts for at least 10 percent of the
country’s GDP. It is the second largest source of foreign capital after value added exports like
electronic components, and a major source of private consumption, which in turn accounts for 75
percent of the GDP.
Now that should surely answer how OFWs help the economy of the Philippines!

Other areas of impact

The impact of remittances on the Philippine economy goes beyond GDP numbers. OFW
remittances have contributed significantly to the country’s foreign exchange earnings. In doing
so, these remittances have contributed to strengthening the nation’s position regarding balance of
payments, bolstering the surplus on current accounts.
Inward remittances augment the total income of the recipient households. If the household
already has a source of domestic income, it adds to the disposable income. With more income,
household consumption rises. This goes in different directions – from basic needs to an improved
consumption basket of food, clothing, leisure, and then some luxuries. There’s no denying that
most families enjoy an improvement in their standard of living.
An important element of this phenomenon is the effect on the typical household’s educational
choices. Families now have more opportunities to offer better quality education to children. This
is arguably one of the most crucial impacts of OFW remittances on the economy. While OFWs
send money to the Philippines regularly, these remittances impact not only regular household
chores but also their loved ones’ future.
For some families living below the poverty line, it can be incredibly difficult to pay off bigger
bills like house mortgage, higher education fees, etc. OFW remittances come in as an
indispensable aid. The families of OFWs can avail proper healthcare, make better lifestyle
choices, and live a more comfortable life – all because of the remittances. Not just on a
macroscopic level of the national economy of the Philippines, OFW remittances also make
things easier at very microscopic levels of household finances. Let us see how things can be
made easier for them.
Also Read: Bringing H.O.P.E. To The Children Of Talubin Elementary School

Making things easier

Remittances coming in such huge numbers are hard to ignore even in microscopic detailing.
Many debates have been sparked over high transaction charges. With OFWs contributing so
heavily to the nation’s growth, it seems fitting that the government should make some
allowances for them. Considering the large amounts sent by OFWs to their families, high fees
could amount to a tidy sum. International money transfer organisations and the industry as a
whole are working towards bringing down the cost of remittances that will eventually benefit the
OFWs sending money back home.
Millions of OFWs use Xpress Money to send money to the Philippines so their families can
benefit from their hard work. With instant transfers, low transfer fees, zero backend charges, and
the largest agent network in the Philippines, Xpress Money is a brand that is focused on helping
OFWs make the most of their hard-earned money.