L6: Labor Migration and the Economics of OFWs

• Labor Migration

  • refers to the movement of people from one country to another for employment opportunities.
• Two Types of Labor Migration

  • Internal Migration
  • International Migration
• • Filipinos are one of the largest migrant worker populations worldwide.
  • The Philippines is a significant exporter of labor due to economic factors and domestic job scarcity.
• Causes of Labor Migration

  1. Poverty
  2. Unemployment
  3. Victims of natural calamities
  4. Improve the standard of living
  5. Better education
  6. Better environment
  7. Economic security
• Positive Effects of Labor Migration

  • Economic Growth Through Remittances
  • Reduction in Unemployment
  • Skills Development
  • Investment and Entrepreneurship
• Negative Effects of Labor Migration

  1. Brain Drain
  2. Family Separation
  3. Dependence on Remittances
  4. Labor Shortages
• Overview of Overseas Filipino Workers (OFWs)

  • OFWs are Filipino citizens working in foreign countries for a specific period.
  • They contribute significantly to the Philippine economy through remittances.
  • OFWs typically work in sectors like healthcare, engineering, domestic work, and construction.
• Remittances

  • refer to money that individuals send to their home country, usually from overseas.
• Overview of Overseas Filipino Workers (OFWs)

  • Approx. 2.3 million OFWs (as of 2022)
  • Key sectors: Healthcare, domestic work, engineering, hospitality, construction
  • Popular destinations: Saudi Arabia, UAE, USA, Qatar, Canada
• The Economic Impact of OFWs

  • Remittances
  • Job Creation
  • Real Estate and Consumption
• Government Policies on Labor Migration

  1. POEA (Philippine Overseas Employment Administration): Regulates the recruitment and deployment of OFWs.
  2. OWWA (Overseas Workers Welfare Administration): Provides welfare and protection for OFWs.
  3. Government Assistance: Programs include training, legal assistance, and reintegration support for returning OFWs.
  4. Bayanihan Program: Supports OFWs in times of crisis (e.g., health emergencies, natural disasters).
• The Future of OFWs & Labor Migration

  1. Automation & AI: The rise of technology may affect traditional migrant jobs in industries like manufacturing and domestic work.
  2. Global Migration Trends: Growing demand for healthcare and skilled workers.