No. 50 - October 2003
Overseas Filipino Workers
By Maricar T. Manuzon
 
Lack of employment opportunities in local shores forces many Filipinos to leave the Philippines in search of greener pastures. Luckily, there are takers for the country’s aspiring migrant workers.

Showcase of Competitiveness

Despite increased competition from other labor-sending countries as well as the intensified implementation of nationalization policies in some OFW (Overseas Filipino Workers) destination countries, hiring of contract workers from the Philippines is expected to continue. Labor Secretary Patricia Sto. Tomas cites two reasons why this is so. One is that there are still shortages in other countries of local skills in certain occupations.

The other more important consideration is that OFWs have distinguished themselves as excellent workers. Sto. Tomas points out that Filipinos are preferred by many countries over other nationalities owing to a good mix of their hard (technical) skills and soft skills (language proficiency, good communication skills and positive work values).

Due to the distinguished character, knowledge and skill of OFWs, the paradigm has gradually shifted to overseas employment being the “showcase of Philippines’ competitiveness” from being a means to alleviate joblessness in the country. Taking the lead, the Labor Department has shifted its focus to putting the spotlight on the quality of Filipino workforce from highlighting the “low-wage” edge.

There has also been a gradual shift to higher-end occupations (such as health and medical workers, professionals, teachers, IT workers, construction personnel and engineers, among others) from laborers and unskilled workers. For instance, teachers and nurses top the list of Filipino migrant workers in demand in the Americas. In China, the bulk of the demand is for the country’s English teachers. Meanwhile, Singapore contracts Filipino nurses, nursing aides, engineers, IT analysts and programmers. Japan, on the other hand, is hiring Filipino IT professionals and engineers.

Role of DOLE

Sto. Tomas points out that, the country’s labor force has graduated to a higher level of competition as indicated by the outcomes of world competitiveness surveys. Citing an example, Meta Group’s Global Economy Index 2000 results showed that the Philippines topped the job knowledge index beating 47 countries, with a citation on the country’s information processing capability, said to be a major indicator of a nation’s competitive advantage. According to the Institute of Management Development’s World Competitiveness Report 2002, the country is a top haven for establishments in need of skilled workers, among 50 developed and developing countries.

Nevertheless, the labor department sees the need to maintain and enhance the skills competitiveness of OFWs. For this purpose, DOLE has initiated technical education and training programs for OFWs. DOLE also reports that foreign language instruction has been made available particularly to Filipino nurses who are being considered for employment in the Netherlands. There is also specialized training for Filipino household workers and performing artists. Made available as well are skills proficiency certification schemes developed especially for Filipino IT professionals who are applying for jobs in Japan or in Japanese companies around the world.

On top of improving the competitiveness of the OFW community, DOLE has also put into place labor attaches, welfare officers, doctors and social workers on site to respond to the needs or problems of OFWs. Through Overseas Workers Welfare Administration, DOLE maintains a network of 27 worldwide and 14 regional offices to intervene when problems arise. The department also enters into bilateral agreements with principals of the OFWs to ensure the provision of social protection benefits.

Big Help

A total of 669,419 landbased and seabased OFWs were deployed as of September this year, 5.6% lower than the total deployment of 708,859 a year ago. Cited as one of the reasons for the decline in the deployment was the Iraq war in March which affected deployment to the Middle East, traditionally a top destination of OFWs. Another major reason named was the SARS epidemic which peaked in the months of March and April, mainly affecting deployment to Asia (the second top destination of OFWs) particularly the SARS affected economies of Hong Kong, Singapore and Taiwan.

Despite the slowdown in deployment, OFW remittances for the first eight months of the year have already reached US$5.06 billion, 4.8% up from the same period last year. OFW remittances have greatly contributed to the country’s GNP and foreign exchange earnings, and have strengthened the balance of payments position that has been perennially strained by trade deficits. On the industry level, OFW money has boosted the revenues of local banks servicing their money transmittal needs and boosted private consumption of local goods and services.

Global Worker

How Filipinos have reached far and wide globally for gainful employment is somewhat mind-boggling. On the one hand, this is proof that the country is indeed rich in diversely skilled human resources that even the remotest place in the planet would probably have at least one Filipino migrant worker. On the other hand, this could signify a state of desperation among our countrymen who are willing to be continents away from their families for a bigger paycheck, if not simply for employment.

Given the country’s double-digit unemployment rate, the government may just find itself doing the right thing by supporting the migration of Filipino workers in the hope that it can sustain its reputation as a world-class manpower supplier to the international labor market. The long-term goal, however, should be geared towards encouraging foreign investments into the country with its hardworking overseas service providers serving as its advertisement to the world for Philippines’ competitiveness.

 
 

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