Labor migration and the

Overseas Filipino Worker

(OFW)

PRESENTED BY:
JACKIE LOU SANTOS
DIELHYN MARIE MENDOZA
 What is migration? 
 Refers to the movement of people from one
place to another.
2 Types of Migration:
a. Internal Migration – refers to the movement
of people within one country i.e. rural to
urban migration
b. International Migration – refers to the
 Causes of Migration
 Poverty
 Unemployment
 Victims of natural calamities
 Improve standard of living
 Better education
 Better environment
 Economic Security
 Effects of Migration

Positive Effects  Negative Effects

 Increase labor supply  Overcrowding
Cheap labor  Lack of housing facilities
Traffic congestion
Unemployment
Occurrence of squatter
areas
 Labor Migration

 isthe process of shifting a labor force

from one physical location to another.

 Labormigration takes place with the

support of labor force
 Causes of labor migration

1. The desire of job seekers to increase

income and to improve the standard of
living
2. The emergence of new industries
3. The relocation of production facilities of a
given business to a new area.
 The OFW Phenomenon

What are OFWs?

 Overseas Filipino Workers (OFWs) – are

Filipinos who are presently and temporarily
working outside the country. They may be land-
based of sea-based workers.
 Ex. Domestic Helpers, Teachers, Seamen,
Nurses
 POEA (Philippine Overseas
Employment Administration)

In 2014, • Land-based –
there are 1,430,842
1,832,66 • Sea-based – 401,
8 OFWs 862
 Reasons behind the OFW
Phenomenon
 High Unemployment Rate
 Low Salary offered by employers in the
Philippines
 Discrimination in job hiring in the Philippines
 High Withholding Tax
The Philippine Peso
and
Foreign Currencies
 The Filipino Peso
 The Philippine peso (Filipino: piso; sign: ₱; code: PHP) is
the official currency of the Philippines. It is subdivided
into 100 centavos (Filipino: sentimo).

 The peso is usually denoted by the symbol "₱".

 The Philippine coins and banknotes are minted and

printed at the Security Plant Complex of the Bangko
Sentral ng Pilipinas (Central Bank of the Philippines)
The Five and Ten Peso Bill
The 20 Peso Bill
The 50 Peso Bill
The 100 Peso Bill
The 200 Peso Bill
The 500 Peso Bill
The 1000 Peso Bill
 What is Currency?

• In economics, currency is a generally
accepted medium of exchange.
• An exchange rate is the rate at which one
currency may be converted into another,
also called rate of exchange of foreign
exchange rate or currency exchange rate.
 Foreign Exchange Rate

 The foreign exchange rate is simply the

price of one currency in terms of another,
or how much one currency can be
exchanged for another, in the same way
that the price of a good is determined by
how much money can be exchanged for it.
 Money Changing

 The main function of a foreign exchange

department is to make money for the bank
by speculating on whether a particular
currency will rise or fall against another.
Banks compete fiercely with each other
using experienced market traders and
millions of dollars or currency equivalents
are exchanged daily.
 Foreign Exchange Market

 The foreign exchange
market (forex, FX, or currency
market) is a form of exchange for the
global decentralized trading of
international currencies.
 Foreign Exchange
Transaction
A type of currency transaction that involves two
countries. Generally, a foreign exchange
transaction involves conversion of currency of
one country with that of another. The conversion
of currency in a foreign exchange transaction can
be performed through :
1. buying or selling of goods and services on
credit;
Functions of Foreign Currency Exchange
Markets

• Primary Function
• International Transactions
• Currency Value
 Tips that will help you increase your profit
potential and prevent you from losing money. 

1. Select your first broker

2. Get a simple method you
understand 
3. Trade the big trends and not
trade frequently
 4. Work smart and not hard 

5. The formula to
success

Using Simple Method + With Discipline +

Control Risks = Forex Trading Success
Tips & Warnings
*Document your training objectives. This can
facilitate the process for everyone.
*Create and prioritize an outline of the demos and
videos to use as a checklist for each handler.
*Let handlers know it takes time to master the forex
system to keep them from being discouraged.
*Foreign exchange trading is a high-risk activity and
should not be taken lightly.
*Monitor each handler individually, be available for
one-on-one interaction and encourage questions for
the best training results.
 What is foreign exchange
risk?
Exchange risk is simple in concept: a
potential gain or loss that occurs as a
result of an exchange rate change.
 About BPI Forex
Corporation
BPI Forex Corporation is a wholly-owned
subsidiary of the Bank of the Philippine
Islands (BPI) established in response to
increasing foreign exchange demand
following a liberalized foreign exchange
environment in the country. It delivers
hassle - free service and offers very
attractive exchange rates for your
List of Currencies Aside from the US
Dollar,
BPI Forex Corporation transacts in the

following
Australian Dollar
currencies:
 Korean Won
 Bahrain Dinar
 British Pound
 Brunei Dollar
 Canadian Dollar
 Chinese Yuan
 Euro
 Hong Kong Dollar
 Indonesian Rupiah
 BPI FOREIGN EXCHANGE
Currencies Buying  Selling 
(in Philippine Peso) (in Philippine Peso)
  US Dollar 41.7500 42.5200
  Euro 48.4700 52.5700
  British Pound 61.7800 66.3000
  Australian Dollar 39.6400 44.1600
  Japanese Yen 0.5084 0.5509
  Canadian Dollar 38.4400 42.7600
  Swiss Franc 39.8500 44.1700
  Hongkong Dollar 5.3300 6.0000
  Singapore 32.6200 33.9500
Dollar
  Brunei Dollar 32.5400 34.0300
  Thailand Baht 1.2900 1.5000
  Indonesian 0.0042 0.0053
Rupiah
  Saudi Riyal 10.9000 11.6000
  Malaysian 12.9000 13.6700
Ringgit
  New Zealand 32.6400 34.1300
Dollar
  Bahrain Dinar 109.0400 113.5100
The Philippine Housing
Shortage And The Real
Estate Boom :
RENT AND PRICE
STRUCTURE
House as a basic commodities
 The Philippine housing market reveals a
tremendous gap between the demand and supply of
housing. At the root of this housing shortage is the
fact that the majority of households are unable to
pay for the cost of housing and land.
 The global financial turmoil and high inflation
have slowed down the Philippines raging real estate
boom. Although luxury condominium prices continue
to rise, the residential sector is definitely slowing.
 The average price of a luxury 3 bedroom
condominium in Metro Manila rose 13.35% to Q2
2008 from a year earlier. Adjusted for inflation,
residential prices increased only 3.3% over the year.
 The minimum housing cost of P150 thousand per unit is 3.8
times the yearly wages of an unskilled laborer in 1997.
Likewise, a P250 thousand unit housing is 3.1 times the
annual income of an employee earning a median income of
P6,700 per month.
 This ratio is expected to be on the rise given the high rate
of increase of housing prices in the country. Average annual
housing price appreciation in the Philippines (i.e. Manila) is
32 percent per year, the highest among other major cities in
Asia (HABITAT and World Bank 1993).
 Philippines does not publish official house price
statistics. Colliers International has quarterly data of capital
values in the Makati-CBD. Economics statistics are available
from government agencies - Bangko Sentral ng Pilipinas,
 The construction and real estate sectors make up around
20% of the Philippine economy, slightly ahead of
manufacturing. Over the past few years, construction in the
Philippines has been flourishing amid a climate of political
stability and upbeat business sentiment, spurred by growth in
overseas foreign worker remittances, inbound investments into
business process outsourcing, rising numbers
 Final results of the 2010 Annual Survey of Philippine
Business and Industry (ASPBI) showed that a total of 2,873
establishments were engaged in real estate activities. About
86.8 percent (2,493) were establishments with total
employment of less than 20 while 13.2 percent (380) were
establishments with total employment of 20 and over.
 About 8 out of 10 establishments were engaged in real