ILM 2008 Seoul SEA Philippines Tullao

Case Study by Economy Southeast Asia
The Philippines
Prof. Tereso S. Tullao, Jr. De La Salle University - Manila
Revised Paper
After PECC-ABAC Conference on Demographic Change and International Labor Mobility in the Asia Pacific Region: Implications for Business and Cooperation in Seoul, Korea on March 25-26, 2008
Demographic Changes and International Labor Mobility in the Philippines: Implications for Business and Cooperation 1 Tereso S. Tullao, Jr., Ph. D. 2 June 2008 Abstract The massive and increasing global movement of people is a very visible issue among economies in Southeast Asia. In 1970s, migration within the region was estimated to be around 300,000 but this has recently risen to around 4 million. These regional flows of workers together with the forces of globalization have contributed much to the economic transformation of East and Southeast Asia with its corresponding benefits and costs to sending as well as receiving economies. Temporary migration of workers is not entirely an internal issue. As such, there is a need for a regional response to the issues that both receiving and sending economies are experiencing with this contemporary global phenomenon. The Philippines, as one of leading labor-exporting economies in the region, has absorbed and managed some the positive and negative consequences of temporary labor migration on the family, community, and the economy. Economies in the region can learn from best practices that the Philippines has adopted in managing temporary labor migration in the last three decades. The issues of access, protection, and impact pertaining to the temporary international labor migration should be the focal points of regional discussion. Areas for regional cooperation should include liberalization of immigration policies, convergence of domestic policies pertaining to the employment of foreign workers, decreasing the cost of migration, human resource development, brain drain tax, increasing the incentive for return migration, and protection of migrant workers. Resolving these issues will further enhance the benefits already enjoyed and mitigate the negative consequences of temporary labor migration.
Paper prepared for the Philippine Pacific Economic Cooperation Committee (PPECC) as the Philippines contribution in a regional study on Demographic Change and International Labor Mobility in the Asia Pacific Region: Implications for Business and Cooperation. Research assistance provided by John Paolo R. Rivera is greatly appreciated. 2 Professor of Economics, De La Salle University (DLSU) Manila and Director of Center for Business and Economic Research and Development, DLSU Manila.
INTRODUCTION
One of the most visible phenomena currently is the massive and increasing global movement of people. A World Bank study estimates that the number of migrants doubled or even tripled in most net-labor importing economies for the past two decades. In the early 1970s, migration within Southeast Asia was estimated to be around 300,000. In more recent years, this stock of foreign workers has risen to around four million and another two million foreigners are working in Northeast Asia. These regional flows of workers have contributed to great extent in the economic transformation of East Asia.
Various factors have contributed to this massive movement of people across national boundaries. The forces of globalization through the liberalization of services have facilitated the temporary movement of natural persons. However, the movement of workers in the Asia Pacific region can be viewed primarily as responses of individuals and economies to regional economic and demographic asymmetries that produce differential impact on the regional labor markets. The exhaustion of the labor reserves in Japan, South Korea, Hong Kong, Singapore, and Chinese Taipei have pressured them to source labor externally primarily from Southeast Asia to meet their emerging labor shortages.
These regional labor and demographic asymmetries have the potential for contributing to regional advancement. However, the movement of people is a very sensitive issue for receiving economies and may also incur social costs on sending economies. Receiving economies are apprehensive on the impact of the inflows of foreigners on their labor markets, and the heavy pressures on social infrastructure. As a result, they make it difficult for workers
from surplus labor to move across boundaries. On the sending economies, there are corresponding risks involved in exporting manpower services including, among others, overdependence on remittances from overseas employment, overvaluation of the real exchange rate, displacement of labor and domestic industries, and brain drain.
Since temporary migration of workers is not entirely an internal issue, there is a need for a regional, if not a global, response to the problems and issues that both receiving and sending economies are experiencing from this global phenomenon. In this light, there is a need for a regional discussion on the issues and map out an agenda for cooperation on international labor mobility in the Asia Pacific region towards enhanced and shared prosperity in the region.
The Philippines is considered one of highest migrant-sending and labor-exporting economies worldwide with almost 9 percent of its 86 million people living and working in at least 150 economies around the world. Filipino seafarers comprise more than one fourth of the entire merchant marine fleet in the world. It is estimated that about 3,000 Filipinos leave daily to seek overseas employment.
Given the magnitude of temporary labor migration, its impact on the economy, household and the community, it is imperative to know how the Philippines has managed the temporary movement of labor to seek overseas employment. As a regional issue, various stakeholders want to explore the implications of temporary labor migration on various sectors including business and identify common challenges as well as possible cooperative responses on these issues.
MAGNITUDE OF EXTERNAL MIGRATION IN THE PHILIPPINES
SHORT HISTORY OF FILIPINO LABOR MIGRATION External migration has been a part of the lives of Filipinos for over a century now. During the Spanish colonial period, sons of the emerging middle class were sent to Europe to study, while the working class manned the trading ships that crossed the Pacific between Manila and Acapulco. During the American period, colonial ties allowed the easy entry of Filipino workers in the plantations of Hawaii and California, the acceptance of Filipino scholars in American universities, and the permission of Filipinos to serve in the United States Navy (Tullao & Cortez 2006a).
The liberalization of immigration policies and the removal of the quota system in the 1960s made the United States more accessible to Filipino professionals particularly nurses, doctors, accountants, engineers and teachers (Tullao & Cortez, 2006a). One significant observation in the migration flows to the United States, however, has been the movement primarily for permanent residence. This trend has likewise been observed in migration flows of Filipinos to Canada and Australia.
In the past, Filipinos did not only leave the Philippines to seek permanent residence abroad but sought temporary employment. For over several decades, the significant flows of temporary workers started with construction and logging workers in Indonesia and Malaysia in the 1960s. Filipino musicians and entertainers were seen in several major cities in Asia during the post-war years. Subsequently, the oil boom in the 1970s expanded several
economies in the Middle East and has attracted all kinds of Filipino workers, both
professionals and laborers, into the region. The more recent economic prosperity of Hong Kong, Chinese Taipei, Singapore, Malaysia, Japan and South Korea has also attracted thousands of Filipino workers including entertainers, factory workers, domestic helpers and construction workers to these places. Recent estimates reveal that, Overseas Filipino Workers (OFWs) are in more than 150 economies all over the world.
MAGNITUDE AND DIRECTION OF OVERSEAS EMPLOYMENT OF FILIPINOS Overseas Filipino workers (OFWs) have been making significant contributions in the maintenance, stability and growth of the Philippine economy as they continuously search for various markets around the global labor market since the 1970s and faithfully send remittances to their families. The total volume of documented OFWs with processed contracts has persistently been increasing (Philippine Overseas Employment Administration [POEA], 2006). TABLE 2A Deployed Land Based Overseas Filipino Workers by Major World Groupings from 1991 to 2006 The Trust Middle Unspecified Oceania Year Total* Africa Asia Europe Americas Territories East 1,374 13,373 11,409 1991 489,260 1,964 132,592 13,156 302,825 1,669 12,319 11,164 1992 549,655 2,510 134,776 14,590 340,604 1,507 12,228 8,890 1993 550,872 2,425 168,205 13,423 302,975 1,295 12,603 8,489 1994 564,031 3,255 194,120 11,513 286,387 1,398 13,469 7,039 1995 488,173 3,615 166,774 10,279 234,310 1,577 8,378 4,869 1996 484,653 2,494 174,308 11,409 221,224 1,970 7,058 5,280 1997 559,227 3,517 235,129 12,626 221,047 2,524 9,152 7,677 1998 638,343 5,538 307,261 26,422 279,767 2,424 9,045 6,622 1999 640,331 4,936 299,521 30,707 287,076 2,386 7,624 7,421 6,921 2000 643,304 4,298 292,067 39,296 283,291 2,061 10,679 6,823 11,530 2001 662,648 4,943 285,051 43,019 297,533 1,917 11,532 6,075 10,882 2002 682,315 6,919 288,481 45,363 306,939 1,698 11,049 5,023 46,279 2003 651,938 8,750 255,287 37,981 285,564 3,023 11,692 7,177 1 2004 704,586 8,485 266,609 55,116 352,314 740,632 9,103 255,084 52,146 394,419 2,866 14,886 7,596 135 2005 5,216 21,976 6,481 2006 787,921 9,450 222,940 59,313 462,545
* Based on the report of POEA's Labor Assistance Center on the actual departure of OFWs at the international airports, NAIA Cabin Crews and POEA Regional Extension Units. Source: Philippine Overseas Employment Administration
Shown in Table 2A is the deployment of land based OFWs. In 2006, the Middle East absorbed more than 58 percent of the deployed OFWs making it the leading destination relative to other major world groupings. Of the total 788 thousand OFWs deployed in 2006, 463 thousand were deployed in the Middle East, while a total of 223 thousand were sent to various parts of Asia, 59 thousand in Europe and 22 thousand in the American territory. Among the economies in the Middle East, Saudi Arabia is where OFWs are mostly concentrated as shown in Table 2B where approximately 50 percent of OFWs are deployed. Data obtained from POEA, shown in Table 2C, revealed that the top ten economies that absorbed OFWs for the years 2005 and 2006 are Saudi Arabia, United Arab Emirates, Hong Kong, Kuwait, Qatar, Chinese Taipei, Singapore, Italy, United Kingdom, and Korea.
Territory Total* Saudi 193,698 198,556 184,724 190,732 193,157 169,011 188,107 194,350 223,459 Arabia United Arab 35,485 39,633 43,045 44,631 50,796 49,164 68,386 82,039 99,212 Emirates Kuwait 17,372 17,628 21,490 21,956 25,894 26,225 36,591 40,306 47,917 Qatar 10,734 7,950 8,679 10,769 11,516 14,344 21,360 31,421 45,795 Bahrain 5,180 5,592 5,498 5,861 6,034 6,406 8,257 9,968 11,736 Israel 2,022 3,488 4,429 5,562 5,049 5,094 5,639 5,121 5,053 Libya 7,084 5,937 5,962 5,489 6,114 5,083 5,728 5,328 5,165 Oman 5,199 5,089 4,739 4,512 3,303 3,652 4,279 5,308 7,071 Lebanon 1,342 1,674 2,783 3,350 3,046 2,786 7,795 14,970 9,596 Iraq 10 23 42 86 50 1,490 3,252 Jordan 551 456 541 560 701 812 1,166 3,844 5,720 Yemen 591 582 589 1,140 553 629 651 681 792 Egypt 358 334 487 539 421 490 385 257 302 Iran 18 24 132 641 112 240 3,252 Syria 99 109 151 1,705 193 138 142 139 108 Unspecified 24 1 Source: Philippine Overseas Employment Administration
TABLE 2B Deployment of Land Based OFWs in the Middle East from 1998 to 2006 1998 1999 2000 2001 2002 2003 2004 2005 2006 279,767 287,076 283,291 297,533 306,939 285,564 352,314 394,419 462,545
TABLE 2C Deployment of Overseas Filipino Workers (OFWs) By Top 10 Destinations (New Hires and Rehires) for 2005 and 2006 OFW OFW Deployment Percentage Deployment Percentage Destination (New Hires) for Share to Total (New Hires) for Share to Total 2005 2006 1 Saudi Arabia 194,350 26.2 223,459 28.4 United Arab 2 82,039 11.1 99,212 12.6 Emirates 3 Hong Kong 98,693 13.3 96,929 12.3 4 Kuwait 40,306 5.4 47,917 6.1 5 Qatar 31,421 4.2 45,795 5.8 Chinese 6 46,737 6.3 39,025 5.0 Taipei 7 Singapore 28,152 3.8 28,369 3.6 8 Italy 21,267 2.9 25,413 3.2 United 9 16,930 2.3 16,926 2.1 Kingdom 10 Korea 9,975 1.3 13,984 1.8 11 Others 170,762 23.1 151,041 19.2 Land-based 740,632 100.0 788,070 100.0 Total
Source: Philippine Overseas Employment Administration
TABLE 2D Deployment of Overseas Filipino Workers for 2005 and 2006 OFW Percentage OFW Percentage Category Deployment for Share to Deployment Share to 2005 Total for 2006 Total Land Based 740,632 74.92 788,070 74.17 New Hires 289,981 29.33 317,680 29.90 Rehires 450,651 45.58 470,390 44.27 Sea Based 247,983 25.08 274,497 25.83 Total Deployed 988,615 100.00 1,062,567 100.00 Daily Deployment 2,709 2,903 Average
Also, in 2006 from Table 2D, the total number of sea-based workers deployed reached 274 thousand up from 248 thousand deployed in 2005. Even if the number of seabased workers deployed overseas has been increasing over the years, its share to the total OFW deployment has remained at 25 percent. The top 10 flag registry of deployed seafarers is shown in Table 2E.
TABLE 2E Deployment of Seafarers by Flag of Registry for the Year 2006 Flag of Registry Number of Seafarers % Share Panama 55,016 23.92 Bahamas 29,457 12.81 Liberia 22,210 9.66 Marshall Island 9,993 4.34 Singapore 9,362 4.07 United Kingdom 7,824 3.40 Malta 7,803 3.39 Norway 7,260 3.16 Cyprus 7,255 3.15 Netherlands 6,653 2.89 Others 67,189 29.21 TOTAL 230,022 100.00
Based on the profile of 230,022 deployed seafarers Source: Philippine Overseas Employment Administration
Generally, Filipino workers are in demand abroad because of their relative proficiency in the English language, their exposure and training in Western standards of education. In addition, their industry, resourcefulness, adaptability, patience, and enthusiasm that makes them productive workers (Macaraeg, 2005).
OCCUPATIONAL, EDUCATIONAL AND OTHER CHARACTERISTICS OF OVERSEAS FILIPINO WORKERS The Philippines is one of the largest suppliers of a variety of workers for overseas employment. The economy deploys professionals and technical worker including doctors, engineers, nurses, teachers, and IT specialists all over the world. On the other hand, semiskilled workers are also deployed including technicians, production workers, caregivers, entertainers, domestic workers, and many others. Inadequate domestic employment opportunities as well as the higher compensation package abroad exert a pull on many of educated workers to seek overseas employment (Macaraeg, 2005).
Shown in Table 2F are the major skills categories of OFWs for selected years. Over these years, the top three occupational groups have invariably been production workers,
service workers and professional workers. In 2006, production workers accounted for 35 percent of the total while service workers and professional workers constituted 48 percent and 12 percent respectively.
TABLE 2F Deployment of Overseas Filipino Workers (OFWs) By Skill Category for Selected Years Major Occupational Groups (By Skill) 1992 1995 2000 2005 2006 Administrative and Managerial Workers 289 339 284 490 817 Agricultural, Animal Husbandry and Forestry 2,023 981 526 350 807 Workers, Fishermen, and Hunters Clerical and Related Workers 5,369 3,441 2,367 5,538 7,912 Production and Related Workers, Transport 95,062 82,508 57,807 74,802 103,584 Equipment Operators and Laborers Professional Technical and Related Workers 72,881 43,901 78,685 63,941 35,809 Sales Workers 2,701 1,990 2,083 4,261 5,517 Service Workers 82,267 81,028 91,206 133,907 144,320 Others Not Elsewhere Classified 0 0 7,662 1 0
As shown in Table 2G, the household and related workers category comprise the largest major occupational group in 2006 accounting for almost 30 percent of the total deployed land-based newly hires with some 91,451 domestic helpers deployed. Factory and related workers, construction workers, building caretakers and related workers, hotel and restaurant related workers, caregivers and caretakers, medical related workers, engineers and related workers, dressmakers, tailors, and related workers, and performing artists have also significant number being deployed for overseas employment.
In terms of sea-based workers, in 2006, based on the profile of 230,022 deployed seafarers retrieved from POEA, majority or 136,579 of them were in rating category, while 52,757 and 38,508 were deployed as officers and passenger ship/liner personnel, respectively.
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In terms of educational qualification, there has been a decline in the deployment of high school graduates for overseas employment while an increasing trend of college graduates being deployed abroad has been observed as shown in Table 2H. This trend may be a consequence of the international labor market becoming highly competitive that demands laborers with higher educational achievement. Even production workers in the worlds leading manufacturers demand workers with higher education and skills.
TABLE 2G Deployment of New Hires Overseas Filipino Workers (OFWs) Major Occupational Groups by Gender For the year 2006 Occupational Group Male Female Total % Share to Total Household and Related Workers 1,590 89,861 91,451 29.7 Factory and Related Workers 30,544 12,690 43,234 14.0 Construction Workers 40,178 2,862 43,040 14.0 Medical Related Workers 2,650 15,081 17,731 5.8 Hotel and Restaurant Related Workers 6,210 9,483 15,693 5.1 Caregivers and Caretakers 842 13,570 14,412 4.7 Building Caretakers and Related Workers 2,103 10,191 12,294 4.0 Engineers and Related Workers 10,754 415 11,169 3.6 Dressmakers, Tailors and Related Workers 375 7,456 7,831 2.5 Overseas Performing Artists 709 6,722 7,431 2.4 Total Deployment of New Hires 123,688 184,454 308,142 100
TABLE 2H OFW Highest Educational Attainment by Both Sexes 2000 to 2002 Highest Grade Completed Since 2000 Total No grade completed Elementary Undergraduate Elementary Graduate High School Undergraduate High School Graduate Post Secondary College Undergraduate College Graduate Not Reported
Source: National Statistics Office
2001
2002
992,397 16,521 1,295 190,530 290,171 145,608 187,878 121,836 29,886
1,029 1,056 1 1 16 12 46 35 56 54 277 264 23 31 249 279 360 381 1 -
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As a consequence of this global trend many Filipino degree holders are attracted to go abroad as shown in Table 2I because they could earn higher compensation and get better employment benefits overseas, although such trend may result to the problem of brain drain. College undergraduates and those with lower educational attainment, on the other hand, still manage to migrate and find jobs abroad but has to settle for lower paying jobs as domestic helpers, factory workers, construction workers, entertainers and other occupations that does not require specific and highly technical background.
Table 2I shows the annual flows of deployed OFWs who have finished college degrees. Notice from the figures that the bulk of OFWs have business related courses. The figures for nursing and engineering graduates are also significant and close to each other. Nursing professionals are highly demanded in developed economies with ageing population as in Japan as well as those with insufficient labor supply to sustain their economic activities as in the United States and Europe. Many doctors are said to be undergoing special courses for them to take the licensure examination in nursing (Manalansan, 2003). Likewise, there is a high demand for various types of engineers in developing and developed economies embarking on massive developmental projects particularly in Saudi Arabia and United Arab Emirates.
Because of shortages of teachers in developed economies particularly the United States there is an increasing trend in the departure of Filipino teachers observed in more recent years as shown in Table 2I. According to the POEA an average of 73 teachers per year migrate to teach in schools in the United States. They now consist of more than 10,000 foreign teachers being recruited yearly to fill the United States demand for teachers
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especially in crucial subjects such as special education, science and math. The higher compensation is the main reason that attracts teachers to the United States as teachers in the Philippines get an average salary of $300 per month while in the United States they can receive from $3,000 to $4,000 per month (The Manila Mail, 2007). Most of the Filipino teachers who are recruited for overseas employment are the better ones with at least 10 years of teaching experience and units or degrees in graduate studies.
Year
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TABLE 2I Annual Deployment of OFWs by Major/Highly Demanded Educational Degree Programs from 1992 to 2006 Education Engineering Business Science Information Nursing and Accountancy Administration and Technology Technology Teacher And Related Training 112 648 11,276 513 6,078 9,449 130 502 9,461 646 7,308 8,846 166 553 8,283 569 7,171 7,575 119 465 7,501 681 7,954 6,668 114 468 7,744 704 5,477 6,964 166 422 9,001 955 5,245 8,446 132 325 8,260 1,073 5,399 8,363 128 291 6,757 808 5,972 7,269 241 271 5,562 470 8,341 5,951 147 330 5,342 533 7,602 6,918 623 318 8,895 340 12,290 6,566 463 274 8,410 225 8,288 5,677 517 429 10,833 203 8,879 6,536 789 317 10,289 204 11,392 6,400 890 586 14,246 325 8,528 10,685
Figures were computed by the authors from the figures from POEA datasets Source: Philippine Overseas Employment Administration
To make sure that the economy meets the standards of foreign employers, Technical Education Skills Development Authority (TESDA) has forged partnership with developed economies that seek to raise the quality of education of Filipino professionals. This serves as a facilitating and motivational factor for OFWs to migrate to other economies because they could now possess skills that would enable them to compete in the global labor market.
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The emigration of Filipino professionals is exacting a toll on the economys already inferior service sector (Manalansan, 2003). The shortage of nurses can paralyze the operations of public and private hospitals because many of their nursing staffs are applying in hordes, neglectful of the work they will vacate. A report by the Alliance of Health Workers (AHW) reveals that over the last two years, 17% of nurses in 11 hospitals went abroad implying that there would come a point where operating rooms are staffed with novice nurses, and experienced ones often work double shifts (Manalansan, 2003).
EXTENT OF PERMANENT MIGRATION Table 2J shows that the Unites States has been the favorite destination of Filipinos seeking permanent residence abroad. Canada, Australia and Japan, are the next sought after destinations. Based on recent estimates shown in Table 2K, there are around 3.5 million Filipinos who are permanently residing in various parts of the world. Of the more than 8.2 million Filipinos who are overseas in 2006 close to 50 percent are temporary workers and almost 900 thousand have irregular immigration status in their host economies. Tourists and students are not included in the figures for they carry diverse visas when they migrate. Tourists who turned into irregular migrants were projected at the Philippine consulates and embassies in various territories.
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TABLE 2J Number of Registered Filipino Emigrants By Destination for Selected Years Year United States Canada Australia JapanUnited Kingdom GermanyNew Zealand Others Total 40,307 5,226 2,752 254 88 45 12 183 48,867 1981 38,653 2,097 3,458 126 276 213 52 394 45,269 1985 43,781 8,400 5,847 3,569 291 334 50 877 63,149 1990 34,614 11,288 2,966 4,883 151 661 579 1,100 56,242 1995 31,324 8,245 2,298 6,468 174 552 261 1,709 51,031 2000 31,287 9,737 1,965 6,021 176 507 284 2,077 52,054 2001 36,557 8,795 2,603 5,734 271 518 624 2,618 57,720 2002 33,916 9,521 2,223 5,929 225 445 382 2,496 55,137 2003 42,350 10,108 2,647 5,993 309 393 131 2,993 64,924 2004 40,280 13,598 3,027 7,062 478 367 394 3,822 69,028 2005 49,522 13,230 3,735 9,742 556 457 1,973 3,752 82,967 2006
Note: United States includes Insular Area (American Samoa, Guam, Commonwealth of the Mariana Islands, US Virgin Islands, Republic of Marshall Islands, Federated States of Micronesia, Republic of Palau, and Commonwealth of Puerto Rico) Source: Commission on Filipinos Overseas
Table 2K: Stock Estimate of Overseas Filipino Workers As of December 2006 REGION / TERRITORY PERMANENT TEMPORARY IRREGULAR TOTAL WORLD TOTAL 3,556,035 3,802,345 874,792 8,233,172 AFRICA 553 71,503 17,742 89,798 Nigeria 18 13,428 700 14,146 Libya 75 9,475 680 10,230 Others / Unspecified 460 48,600 16,362 65,422 ASIA, East and South Japan Malaysia Others / Unspecified ASIA, West Saudi Arabia Kuwait Others / Unspecified EUROPE United Kingdom Italy Others / Unspecified AMERICAS and TRUST TERRITORIES United States of America Canada Others / Unspecified 196,968 124,722 26,001 46,245 3,523 247 94 3,182 229,132 62,606 23,108 143,418 2,887,129 2,443,269 396,054 47,806
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789,110 103,555 88,372 597,183 1,723,911 1,001,330 133,361 589,220 534,748 93,358 84,972 356,418 333,763 128,440 38,886 166,437
237,600 30,700 125,000 81,900 112,250 18,000 11,500 82,750 124,380 9,600 20,000 94,780 356,400 156,500 3,000 196,900
1,223,678 258,977 239,373 725,328 1,839,684 1,019,577 144,955 675,152 888,260 165,564 128,080 594,616 3,577,292 2,728,209 437,940 411,143
OCEANIA Australia New Zealand Others / Unspecified SEABASED WORKERS
238,730 218,425 19,549 756 0
74,813 15,100 742 58,971 274,497
26,420 3,000 120 23,300 0
339,963 236,525 20,411 83,027 274,497
Notes: Prepared by the Commission on Filipinos Overseas from CFO, DFA, POEA and other sources covering 193 economies. Permanent - Immigrants or legal permanent residents abroad whose stay do not depend on work contracts. Temporary - Persons whose stay overseas is employment related, and who are expected to return at the end of their work contracts. Irregular - Those not properly documented or without valid residence or work permits, or who are overstaying in a foreign economy. Source: Philippine Overseas Employment Administration
SCOPE OF COOPERATION ON LABOR MIGRATION In the Asian region, the Philippine government has been the most successful among the labor-sending economies in its attempts to negotiate labor agreements with other economies (Go, 2007). However, the number of bilateral labor and social security agreements that the Philippine government has successfully concluded over the last thirty years attests to the difficulties of such undertakings. Since 1974 the Philippines has been able to successfully established bilateral labor agreements with only 13 economies. However, the economy has not been able to enter into such agreements with the largest labor receiving economies of OFWs such as Singapore, Japan and Saudi Arabia.
The bilateral labor agreements between the Philippines and other economies may be classified into two broad categories, the labor recruitment and special hiring agreements, on the one hand, and the labor, employment, and manpower development agreements on the other hand (Go, 2007).
The labor recruitment agreements focus on the terms and conditions concerning overseas employment and the exchange of trainees. The bilateral agreements with Norway,
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the United Kingdom, Papua New Guinea, Chinese Taipei, and Switzerland are largely recruitment agreements. The agreements with Norway and the United Kingdom specify the terms and conditions regulating the recruitment of Filipino health professionals while the agreement with Sweden specifies the terms and conditions for the exchange of Filipino professional and technical trainees. The agreement with Papua New Guinea details the terms and conditions for the employment of Filipino workers under a non-citizen employment contract. The Memorandum of Understanding between the Philippines and Chinese Taipei implements a special hiring facility that allows employers in Chinese Taipei to directly hire Filipino workers without the intervention of manpower agencies. This special hiring facility provides employers in Chinese Taipei an alternative option to the hiring of workers through manpower agencies. The agreement also includes the commitment of both parties to advance the interest not only of the employers but also of the Filipino workers.
On the other hand, the labor, employment and manpower agreements with Libya, Jordan, Qatar, Iraq, Kuwait, and the Commonwealth of Northern Marianas Islands (CNMI) contain the following essential features: 1. Promotion and strengthening of areas of cooperation in the field of labor, employment, and manpower development; 2. Exchange of information on relevant research, technical expertise, and other matters that would enhance employment promotion and labor administration in both the Philippines and the labor-receiving economy 3. Enhancement of the welfare and protection of the rights of Filipino workers in accordance with the labor laws of the receiving economy
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4. Establishment of a Joint Committee composed of members from both the Philippines and the receiving economy to do a periodic review of the agreement and its implementation
Since 1974, most of the efforts of the Philippine government have been directed towards pursuing bilateral labor agreements with labor-receiving economies. A significant development in 2003 is the signing of a bilateral labor agreement between the Philippines and another labor-sending economy, Indonesia. This agreement is significant because it is the first successful attempt by the Philippines to try to consolidate the efforts of other labor sending economies in the region towards promoting the welfare of migrant workers and protecting their rights. The agreement identifies the following as priorities for joint initiative and cooperation: 1. Promotion and protection of the welfare and rights of migrant workers of both economies 2. Training and certification of migrant workers 3. Provision of legal aid for the protection of the rights of migrant workers
The agreement includes various forms of cooperation such as the exchange information, materials and experience, and the exchange of experts and staff. It also includes the development of collaborative training, joint research and development, joint efforts to promote and protect the welfare and rights of workers, and joint efforts to provide legal assistance for the protection of the rights of workers.
There is also a migration dimension in the still un-ratified Japan-Philippines Economic Partnership Agreement (JPEPA). The movement of natural persons is considered
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as one of the most important areas of the JPEPA. Philippine negotiators have been vocal about the governments keen interest in opening the Japanese labor market to Filipino workers, particularly in healthcare services and information technology.
As one of the worlds fastest aging societies, Japan is already facing a shortage of nurses and other medical personnel, especially in rural areas. The Japanese government, however, is conscious of public concerns that entry of foreign workers could put Japanese people out of jobs. Because of this, the Japanese government demands that certain conditions be met including ability to communicate in Japanese and meet local qualification standards before Filipino health professionals are allowed to work in Japan.
Recently, the Canadian province of British Columbia has signed a memorandum of understanding (MOU) with the Philippines to help fill its need for 350,000 skilled workers over the next 12 years. This two-year MOU will help strengthen relations between British Columbia employers and Philippine recruiters by providing more effective access to foreign workers, particularly those needed for temporary work in the tourism and hospitality, retail, and construction industries. Although the MOUs focus is on temporary workers, it does not prevent workers from being recruited on a permanent basis. The agreement also does not apply to live-in caregivers (Uy, 2008a).
At the start of 2008, there is a report that France would like to ease labor migration rules for Filipinos especially those who are in the electronic, information technology, and health care industries. However, this is still in the process of discussion with the Philippine government. The French government is interested in forging an agreement with Manila to address the needs of its labor market. Part of the proposal is for skilled Filipino workers and
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professionals to return to the Philippines after several years of employment in France. Those who will be invited are those who can be useful to France and willing to be trained and useful to the Philippines when they come back. The policy is to address the problem of brain drain by enticing competent Filipinos to work in France for six, nine, 10 years and then they go back to the Philippines. (Uy, 2008b)
In addition to the bilateral labor agreements mentioned above, the Philippines also engages in international treaties that would protect the welfare of OFWs. In 2006, the Philippine Senate ratified two international labor conventions to provide basic legal protection among Filipino workers (Asia Pulse, 2006).
One of the treaties ratified is the International Labor Organization (ILO) Convention standards that called for the suppression of underground movements of migrants, including the prosecution of those responsible for manpower and trafficking. The ILO Convention 143 reaffirms the duty of host states to promote equality of opportunity and treatment between migrant workers and national workers in respect of employment and occupation, of social security, of trade union and cultural rights of individual and collective freedoms.
The second treaty ratified is the ILO Convention 97, or the Migration for Employment Convention that covers the conditions governing the orderly recruit of migrant workers. It laid down the principle of equal treatment of migrant workers and national workers as regards working conditions, trade union membership and the practice of collective bargaining, accommodation, social security, employment taxes and legal proceedings relating to matters referred to in Convention.
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DEMOGRAPHIC CHANGES AND POLICIES IN THE PHILIPPINES
CHANGES IN POPULATION The population of the Philippines covering several years is shown in Table 3A. It can be inferred from the table that the population of the economy is increasing very fast. It has increased fourfold in the last 50 years, from about 20 million in 1950 to todays more than 80 million Filipinos (Arenas, 2006). As a consequence, rapid population growth has put an incre asing pressure on the government to continuously expand the resources for housing, schools, hospitals and other social services as well as for the generation of employment opportunities t o an increasing labor force. But given the limited government budget and its inability to raise significant revenues for these purposes, what result is an under investment in most basic socia l services. If the growth trend continues, it is estimated that by the end of 2010, the Filipinos would total more than 90 million.
The rapid population growth in the economy can be attributed primarily to its very high birth rates shown in Table 3B. Although the economy birth rates have been decreasing from around 3 percent during the 1970s down to around 2 percent in the 2000s these rates are still high compared with the economies in the region. Improvement in the level of income, higher educational attainment of women, increasing participation rate of women have been cited some of the major reasons for the decline in the birth rates. On the other hand, mortality rate has been stable at 0.6 percent during the 1980s and then declined to 0.4 percent in the 1990s to 2000s.
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TABLE 3A Philippine Population for Selected Years (In Millions) Year Population Level 1950 19.996 1955 23.222 1960 27.054 1965 31.567 1969 35.518 1970 36.551 1975 42.019 1980 48.088 1985 54.266 1990 61.104 1995 68.396 2000 75.766 2005 83.055 2006 86.000
Source: National Statistics Office (NSO)
TABLE 3B Birth Rates and Mortality Rates of the Philippines for Selected Years (per 1000) Year Birth Rate Mortality Rate 1976 30.3 6.9 1980 30.3 6.2 1985 26.3 6.1 1990 26.3 5.1 1995 24.1 4.8 2000 23.0 4.8 2001 21.8 4.9 2002 20.8 4.9 2003 20.4 4.8
The population growth rates of the Philippines for selected years are shown in Table 3C. Although the Philippine population growth rate has declined from 3 percent in the 1960s to 2.3 percent in the 1990s, it is still considered high relative to neighboring economies such as Thailand at 1.4 percent and Indonesia at 1.6 percent. With this, Arenas (2006) claimed that over 1.8 million Filipinos are born yearly. Therefore, there are over 28 million more people today in the Philippines than in South Korea and 15 million more than in Thailand, when in 1965 these economies had about the same population size.
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TABLE 3C Annual Population Growth Rate of the Philippines for Selected Years (in %) Year Annual Growth Rate 1950 1.66 1955 3.08 1960 3.13 1965 3.09 1970 2.91 1975 2.80 1980 2.62 1985 2.41 1990 2.37 1995 2.20 2000 1.98 2005 1.76 2006 3.55
KEY DEMOGRAPHIC CHARACTERISTICS The Philippines has a very young population as shown in the age structure of the population in Table 3D. The data suggest that the population has a slow structural aging since almost 70 percent of the population is between 1 to 34 years old with the highest concentration under bracket 5 to 9 years old (12.7 percent). Another indicator of the high incidence of young population is the median age which was estimated at 19.7 in 1990, 21.0 in 2000, and projected to be 26.5 in 2015 and 28.4 by 2020 based on the medium series projections of National Statistics Office (NSO). Although the proportion of people under age 15 is declining their absolute number continues to increase but a reversal is projected after 2010. Furthermore, older adults in the age bracket of 30 to 59 are continuing to increase in number and proportion. What is observed is that the economy continues to experience a surge in its young population associated with significant increases of the middle-aged population (Gultiano and Xenos, 2004).
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TABLE 3D Age Structure of the Philippine Population (1990 and 2000) Percentage Share Percentage Share Age Group 2000 1990 to Total to Total - 60,599,116 Philippines 76,504,077 Under 1 year 1,917,431 2.51 1,817,270 3.00 14 7,752,071 10.13 6,649,703 10.97 59 9,694,781 12.67 8,061,008 13.30 10 14 8,949,614 11.70 7,465,732 12.32 15 19 8,017,298 10.48 6,640,651 10.96 20 24 7,069,403 9.24 5,768,325 9.52 25 29 6,071,089 7.94 4,945,251 8.16 30 34 5,546,294 7.25 4,201,026 6.93 35 39 4,901,023 6.41 3,501,621 5.78 40 44 4,163,494 5.44 2,753,843 4.54 45 49 3,330,054 4.35 2,221,488 3.67 50 54 2,622,316 3.43 1,905,828 3.14 55 59 1,903,649 2.49 1,439,403 2.38 60 64 1,633,150 2.13 1,127,881 1.86 65 69 1,138,842 1.49 807,620 1.33 70 74 797,972 1.04 565,339 0.93 75 79 505,356 0.66 687,127 1.13 80 to 84 490,240 0.64 85 and over
Another important demographic characteristic is population density which is shown in Table 3E for 1980, 1990, 1995, and 2000. According to census data in 2000, the economy has a population density of 225 people per square kilometer which has risen from 141 registered in the 1980 census. Although this national population density is not as high compared with other economies in the region, there is wide and significant variation across the regions in the economy. The National Capital Region (NCR), for example, remains the most densely popula ted region in the economy with 16,302 persons occupying a square kilometer of land. This m an-land ratio is 61 times the national figure since the NCR is the smallest region with a land a rea of 619.50 square kilometers, or only 0.2 percent of the total land area. Since the NCR is th e political, economic and cultural center of the Philippines, problems of traffic, squatting, con gestion, unemployment, pollution, and inadequate social services usually abound that accomp any an area with a high population density. On the other hand, the Cordillera Administrative
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Region (CAR) recorded the lowest population density in 2000 with 70 per square kilometer r espectively.
TABLE 3E Philippine Population Density by Region (1980 to 2000) Density (persons/sq km) Land area b 2000 1995 1990 1980 (sq km ) (May 1) (Sep 1) (May 1) (May 1) Philippines 340,574.7 225 201 178 141 National Capital Region 619.5 16,032 15,260 12,830 9,565 Cordillera Administrative Region 19,392.9 70 65 59 47 1 Ilocos Region 13,012.6 323 292 273 225 2 Cagayan Valley 28,228.8 100 90 83 68 3 Central Luzon 21,548.1 381 329 294 228 4a CALABARZON c 16,611.9 561 467 382 277 c 4b MIMAROPA 29,620.9 78 69 60 48 5 Bicol Region 18,130.4 258 239 216 192 6 Western Visayas 20,625.9 301 280 261 219 7 Central Visayas 15,886.0 359 316 289 238 8 Eastern Visayas 23,231.4 155 145 131 121 9 Zamboanga Peninzula d 17,046.6 162 147 130 104 10 Northern Mindanao 20,372.1 172 157 138 109 d 11 Davao Region 20,417.8 180 161 144 108 12 SOCSARGEN d 22,481.6 143 127 107 77 13 Caraga 21,470.8 98 90 82 64 Autonomous Region in Muslim Mindanao 31,877.4 90 76 68 51 Consulates and missions abroad Homeless population
a
In 2000, the population of disputed areas was reported in the next higher geographical level. For example, the population of Province A claimed by both Province A and Province B will be reflected in the region, but not in Province A or Province B. This explains the discrepancy when one sums up the province details, which is less than the regional totals. b Land area is based on the 2005 Estimated Land Area certified by the Lands Management Bureau. c Created under Executive Order No. 103 dated May 17, 2002, dividing Region IV into Region IV-A (CALABARZON) and Region IV-B (MIMAROPA) and transferring the province of Aurora to Region III. d Created under Executive Order No. 36 dated September 19, 2001, providing for the reorganization of the administrative regions in Mindanao and for other purposes. Sources: National Statistics Office (NSO) and Lands Management Bureau (LMB)
The dependency ratio is another demographic characteristic since it shows the proportion of people who are dependent on potentially working population. Table 3F shows various estimates of dependency ratio in selected years. What is observed is that the dependency ratio has been decreasing since the 1980s. This is consistent with the trend of majority of developing economies in the globe where lower dependency ratio has been
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prevalent. The declining dependency ratio could be attributed to the declining fertility rate that results in a significant change in age structures and distribution, gradual reduction of proportion of the population under age 15 and enlarged proportion over age 65. As developing nations move through the demographic transition, facing first a period of increasing child dependency ratios, then of decreasing child and old age dependency ratios as a larger proportion of the population moves through the working ages, and finally of increasing old age dependency ratios (Lustig, 1998).
TABLE 3F Dependency Ratio of the Philippines Year 1980 1990 1992 2000 2020* Dependency Ratio 84.7 76.8 72.7 68.5 53.6
Dependency Ratio = (0 to 14 years + 65 years and over)/Total of 15 to 64 years * Projected Source: National Statistics Office (NSO)
POPULATION POLICY There is no separate national policy addressing reproductive health in the Philippines. However, the constitution provides that the state shall defend the right of spouses to establish a family in accordance with their religious convictions and the demands of responsible parenthood. Reproductive health is being addressed in the Medium Term Philippine Development Plan 2004 to 2010. Among various goals relating to social justice and basic needs the plan calls for an emphasis on maternal health, womens health, nutrition, and responsible parenthood (Center for Reproductive Rights, 2005).
There are measures to establish legislation that would reinforce the reproductive health program through the implementation of a comprehensive and formal legal approach to reproductive health. In line with this, the Reproductive Health Care Act of 2002 was
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introduced allowing choice in making decisions in accordance with religious convictions, culture and the demands of responsible parenthood (Center for Reproductive Rights, 2005).
The Philippines is aware of its very rapid population growth and the government also enforces family planning methods to control population growth. The National Family Planning Policy of 2001 and the Philippine Population Management Program (PPMP) Directional Plan (2001 to 2004) also comprise the national policy framework on family planning. The aim of these policy and plan is to help couples and individuals achieve their desired family size within the context of responsible parenthood and improve their reproductive health towards the attainment of sustainable development.
In line with contraception use, contraceptive prevalence rates have increased substantially over the past decades due to the Presidential Decree No. 79 for Revising the Population Act of 1971 that mandated the Commission on Population (POPCOM) to make available all acceptable methods of contraception, except abortion, to all Filipino citizens limiting or preventing pregnancies. This coexists with stringent laws regulating the licensing, sale, and distribution of contraceptives (The Center for Reproductive Rights, 2005).
EMPLOYMENT AND UNEMPLOYMENT The Philippine labor force for selected years are shown in Table 3G. The labor force h as grown from 8.5 million in 1960 to 33.2 million in 2006. Although the labor force is growi ng over time with increased population and participation rates, the level of unemployment is l ikewise increasing. While the employment rate was estimated at 92.7 percent in 2006 the hig hest employment rate was registered at 96.1 percent in 1975. On the other hand unemployme nt rate was estimated at 7.3 percent in 2006 and reached its peak in 1985 at 11.1 percent.
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Year 1960 1965 1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006
TABLE 3G Labor Force for Selected Years Labor Force Total Labor Force Employed (%) Unemployed (%) Participation Rate (%) (in 000) 08,539 93.7 6.3 10,322 92.8 7.2 11,358 92.4 7.6 14,142 96.1 3.9 15,900 92.1 7.9 63.4 21,329 88.9 11.1 64.5 24,525 91.9 8.1 65.6 28,040 91.6 8.4 64.3 30,908 89.9 10.1 67.5 33,361 90.2 9.8 66.2 33,674 89.8 10.2 67.1 35,120 89.8 10.2 66.5 35,629 89.1 10.9 64.8 35,494 92.6 7.4 64.0 33,185 92.7 7.3 Recent increases in the overall employment level came mostly from the services secto
r as the number of employed persons in this sector increased by 5.6 percent, from 15.5 millio n in 2005 to 16.4 million in 2006. On the other hand, the number of employed persons in the i ndustry sector increased by only 0.2 percent. Furthermore, the employment level in the agricu lture sector has been decreasing but it still absorbs a significant portion of the labor force.
Although the labor force has been increasing over time, the annual growth rates in more recent years registered negative rates as shown in Table 3H. With increasing population and increasing labor force participation rate these decreases in the labor force may be attributed to external employment. Laborers that are not absorbed in the domestic labor market sought employment opportunities in the international labor market.
TABLE 3H Philippine Labor Force Growth Rate for Selected Years Year Labor Force Growth Rate (%) 1960 -1.92
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1965 1970 1975 1980 1985 1990 1995 2000 2005 2006
-2.36 1.09 1.85 12.43 2.76 2.79 2.03 -3.41 -0.38 -6.96
With this, overseas employment absorbed a significant amount of the Philippine labor force. From the late 1940s through the 1970s, migrants were largely Filipino members of the armed services, professionals, and relatives of those who had previously migrated. After the liberalization of the United States Immigration and Nationality Act in October 1965, the number of United States immigrant visas issued to Filipinos increased significantly from approximately 2,500 in 1965 to more than 25,000 in 1970. Most of those emigrating were professionals and their families. By the 1990s Filipino-Americans numbered 1.4 million, making them the largest Asian community in the United States (Dolan, 1991). In the 1970s and 1980s, quite a different flow of migration developed. Most emigrants were workers engaged in contract work in the Middle East because of their massive developmental projects. To date approximately 3000 workers leave the economy to work abroad. A million workers deployed for overseas employment on an annual basis can put a dent on the economys labor force as well mitigate the economys unemployment problem.
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MANAGEMENT OF TEMPORARY LABOR MIGRATION IN THE PHILIPPINES
Philippine temporary labor migration management is considered a model in terms of best practices by other labor-exporting economies. However, the government has been ambivalent in integrating overseas labor migration as part of its overall development strategy. As a matter of policy, the Philippine government seeks to manage overseas employment as consistent as possible with national development objectives. The advancement of the rights, welfare, and interests of overseas Filipinos continue to be a major thrust of the economys foreign policy.
The Medium Term Development Plan (MTDP) 1998-2004 states that overseas employment remains to be a legitimate option for the economys work force. As such, government shall fully respect labor mobility, including the preference of workers for overseas employment. Protection shall be provided to Filipinos who choose to work abroad and programs to effectively reintegrate them into the domestic economy upon their return shall be put up. Better employment opportunities and modes of engagement in overseas labor markets shall be actively explored and developed, consistent with regional and international commitments and agreements.
While Filipino overseas workers contribute significantly to the stability of the economy through their remittances, the State does not promote overseas employment as a means to sustain economic growth and achieve national development. The existence of the overseas employment program rests solely on the assurance that the dignity and fundamental human rights and freedoms of the Filipino citizens shall not, at any time, be compromised or
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violated. The State, therefore, shall continuously create local employment opportunities and promote the equitable distribution of wealth and the benefits of development. The State shall deploy overseas Filipino workers only in territories where the rights of Filipino migrant workers are protected.
In the MTDP 2004-2010 aside from protection, there is also a stress on productivity enhancement for laborers seeking overseas employment. Specifically, the Labor and Employment Action Plan includes the following objectives: improvement of OFWs competency, productivity and work values, enhance worker-employer relationship and improve labor welfare abroad, facilitate Filipino workers access to overseas labor markets, and promote flexible work and employment arrangements.
What started as a temporary relief from the burden of unemployment in the 1970s turned out to be the biggest contributor to the gross national income and the stabilization of the economy. Overseas employment has been growing over the past years. For many years, the number of Filipino workers deployed overseas has exceeded the increase in local employment.
As an overall policy, the government shall: (a) provide mechanism to protect the rights of overseas Filipino workers (OFWs) to fair and equitable recruitment and employment practices and ensure their welfare under a deregulated condition; (b) develop programs to ensure quality employment for OFWs; and (c) provide a provident fund for OFWs (POEA, 2005).
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Migration management in the Philippines is guided by Republic Act (R.A.) 8042 or otherwise known as Migrant Workers and Overseas Filipino Act of 1995. In its declaration of policies, the act upholds the dignity of workers whether in the domestic economy or overseas. This legislation has been the basis for the governments role in licensing and regulation of recruitment agencies for overseas employment. The Philippine Overseas Employment Administration (POEA) grants licenses to recruitment agencies, regulates and monitors their performance, and prosecutes illegal recruiters.
The Philippine migration management program covers documentation, protection, social services, and human resources development involving fourteen government agencies including the Department of Foreign Affairs (DFA), Department of Labor and Employment (DOLE), Philippine Overseas Employment Administration (POEA), Overseas Workers Welfare Administration (OWWA).
For documentation, skilled and professional workers are required various documents including original and photocopy of employment contract duly signed by the employer and worker, work permit, visa or equivalent document; photocopy of valid passport.
For the protection of temporary workers, mandatory life and personal accident protection are provided to all departing OWWA-registered and documented OFWs on a per contract basis. OWWA members are entitled to life insurance, disability and dismemberment benefits, total disability benefit and burial benefit. Repatriation programs provided by OWWA cover scholarship programs, skills for employment, education for development, and seafarers upgrading program.
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Consistent with the spirit of R.A. 8042, reforms and trends in recent years focused on promoting welfare of overseas Filipino workers. The government has been forging bilateral agreements not just to secure the labor market but to ensure welfare of workers.
As discussed in the previous section bilateral agreements have concluded with other economies pertaining to the protection and welfare land-based overseas workers. Other features of these bilateral agreements include observance of terms and conditions of the employment contracts, as well as provisions for further enhancement of the said agreements.
The Migrant Workers and Overseas Filipino Act of 1995 ( RA 9422) also paved the way for the protection of OFWs rights by sending them to economies with labor agreements with the Philippines. According to POEA, the Philippines has bilateral labor agreements with only 13 out of the 197 economies hosting OFWs. In order to ensure that the rights and welfare of the migrant workers will not be sacrificed in foreign lands, the POEA shall deploy only trained and competent Filipino workers to economies where the Philippines has concluded bilateral labor arrangements (Gorgonio, 2007).
Such bilateral agreements include that with South Korea wherein they have increased the yearly quota of Filipino workers from 10,000 to 12,000 under its Employment Permit System agreement with the Philippines. Recently, a bilateral labor agreement with the United Arab Emirates was signed calling for the employment of thousands of Filipino workers. The POEA has a similar job agreement with Chinese Taipei under which thousands of Filipinos are now working there. The pending Japan - Philippines Economic Partnership Agreement (JPEPA), if ratified by the Senate, offers bright prospects for the employment of thousands more of medical and technical workers in Japan.
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These bilateral agreements, however, are being opposed by private fee-charging recruitment agencies since they view these agreements as attempts of government to take over their business. They pointed out that the POEA, as the regulatory agency in the overseas employment industry, should not compete with the private firms.
As a matter of policy, the Philippine government seeks to manage overseas employment, in consistency with national development objectives. The advancement of the rights, welfare, and interests of overseas Filipinos continue to be a major thrust of the economys foreign policy in recent years. As such, government actions in overseas
employment that seek to promote recognition of the basic rights and freedom of migrant workers, expedite extension of assistance in securing redress of grievances through bilateral, regional, and multilateral fora, are continuously being pursued to uphold the dignity of OFWs (Tullao & Cortez 2004).
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BENEFITS AND COSTS OF TEMPORARY LABOR MIGRATION
As an investment carried by the household to improve their economic status, migration has both costs and benefits. The huge amount of remittances sent regularly has stabilized the currency and contributed significantly to the growth of the national economy aside from enhancing households welfare. On the other hand, overseas employment has substantial opportunity costs including brain drain, changes in the structure of production and redirecting the economys comparative advantage (Tullao & Cortez 2003).
According to the Bangko Sentral ng Pilipinas (BSP), one economic benefit of overseas employment is the remittance sent by OFWs which a major source of foreign exchange for the economy. Dollar remittances grew from USD 4.9 billion in 1998 to almost USD13 billion in 2006. As a percentage of Gross National Product (GNP), remittances increased to 10 percent currently from 7.2 percent in 1998. During the Asian crisis in 1997 to 1998, the economy escaped a negative growth in 1998 as dollar inflows from overseas workers propped up domestic demand (Tullao, Cortez, and See 2005).
The economic standing of many Filipinos households has improved because the head of the family and other members have earned salaries overseas many times over what they could have earned in the Philippines. Over the years, a significant proportion of Filipino families have relied on foreign remittances or income from abroad as a main source or income. In 1997 the Family Income and Expenditures Survey revealed that 6.2% of Filipino families derived their main source of income from remittances. This share of external remittance income has increased to 8.6 percent in 2000. There were regions, however, where
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the share of external remittances income to total income reached 15.63 percent in 2000 (Tullao, Cortez, and See, 2005).
Migrant families use remittance income primarily for: (1) basic household necessities (2) payments of debts contracted to underwrite migration expenses (3) education of children (4) medical expenses or emergencies (5) purchase of land, or home construction or improvement (6) purchase of appliances or other durables and (7) savings and investments in micro-enterprises.
Overseas employment, however, has its costs on social structures and value systems. Working in a different society affects the individual workers value system. Many of the Filipino entertainers in Japan, domestic helpers, trainees and other workers in some parts of the world have been subjected to abuse and exploitation. The workers absence from his family for long periods also affects the family and marital life. Cases of abuse have destroyed lives of workers and their families. Hence, the generation of domestic employment remains the major priority.
Another drawback of external migration is the phenomenon of brain drain. Brain drain occurs when an economy loses its talented and skilled labor force and its ability to replenish those who leave the economy is threatened. With globalization, as the economy prepares local professionals for global competition, investments in human capital entail some social costs. The increase in the human capital value of professionals from these training and educational expenditures may push many of them to work overseas which may lead to the problem of brain drain (Tullao & Cortez, 2006b).
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When the more productive human talents are employed abroad, the less qualified and inexperienced are left domestically. Inefficiencies of these young and inexperienced service providers contribute to increases in labor costs. In the case of the Philippines, it has to spend more to produce the same caliber of professionals that will in time leave the economy.
Aside from the real loss of manpower due to brain drain, the loss of the economys comparative advantage can be viewed from the impact of remittance. The remittances sent by workers overseas can cause the appreciation of the real exchange rate by increasing the price of non-tradable relative to tradable goods. This appreciation of the real exchange has a resource allocation effect by attracting resources to the non-tradable sector away from the tradable or export and import-competing industries (Tullao, 2007a).
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LABOR MIGRATION OF HEALTH PROFESSIONALS
As mentioned in the introduction, temporary labor migration can be viewed as a response to the demographic and labor asymmetries across nations. This may also be the reason why an increasing number of Filipino health professionals particularly nurses are leaving the economy in recent years. Table 6A shows the number of medical and related worker migrants from 1992 to 2006.
Currently, healthcare is the fastest growing industry in developed economies in Europe, North America and some parts of Asia mainly due to the increase of the aging population. As the industry grows, hospitals and medical centers have started to decrease patient stays. Simultaneously, there has been a shortage of nurses that has created the need to import foreign-trained nurses. The Philippines, on the other hand, is a major supplier of highly qualified nurses to these developed economies since Filipino nurses are considered as skilled, educated, talented, hardworking, have good command of the English language, sincere, independent, uncomplaining, warm, friendly, naturally caring, and family oriented (Saporta, 2004).
TABLE 6A Medical and Related Workers Migrants from 1992 to 2006 Medical and Related Workers 1992 1993 1994 1995 1996 1997 1998 1999 Dental Assistants 84 152 75 73 83 124 172 193 Dentists 27 22 40 50 36 53 32 56 Dietitians and Public Health Nutritionist 105 128 61 82 40 72 98 66 Doctors Medical 84 71 57 63 38 60 55 59 Medical Assistants 8 9 39 15 40 5 7 3 Midwifery Personnel (NEC) 5 4 4 4 8 31 57 49 Midwives Professional 246 297 126 161 142 113 149 66 Nurses Professional 5,747 6,744 6,699 7,584 4,734 4,242 4,591 5,413 Nursing Personnel (NEC) 331 564 472 370 743 1,003 808 559 Optometrists and Opticians 36 42 32 63 36 53 68 96
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Pharmaceutical Assistants Pharmacists Physiotherapists and Occupational Therapists Technicians Medical X-Ray
52 52 519 347
117 33 576 325
32 32 618 319
35 54 566 318
58 57 415 273
65 42 269 368
37 47 317 409
51 55 147 249
MEDICAL AND RELATED WORKERS 2000 2001 2002 2003 2004 2005 2006 Dental Assistants 171 600 341 240 255 344 414 Dentists 33 57 62 40 88 70 71 Dietitians and Public Health Nutritionist 45 64 98 134 143 75 100 Doctors Medical 27 61 129 112 91 97 171 Medical Assistants 1 57 41 8 5 11 27 Midwifery Personnel (NEC) 96 81 172 46 25 49 18 Midwives Professional 55 190 312 276 252 230 367 Nurses Professional 7,683 13,536 11,867 8,968 8,556 10,718 8,076 Nursing Personnel (NEC) 658 286 423 302 323 674 452 Optometrists and Opticians 80 83 123 58 54 57 117 Pharmaceutical Assistants 99 169 112 106 91 95 95 Pharmacists 30 64 57 74 70 99 80 Physiotherapists and Occupational Therapists 235 330 517 371 468 421 716 Technicians Medical X-Ray 223 285 359 384 403 524 469
Because of the huge demand for nursing globally, many qualified and well-trained nurses from developing economies are encouraged to migrate in developed economies. Aside from increasing the training costs of inexperienced nurses, this significant exodus of nurses can threaten the viability and productivity of the health care sector in the sending economy. For example, the health care sector in the Philippines may face an impending crisis in the near future because of the loss of health professionals as a consequence of heavy migration of nurses. Moreover, the outflow of nurses has also attracted doctors and other non-nursing health professionals to go back to school and study nursing. This re-allocation impact can also reduce the stock of other health professionals. To sum, the following factors may contribute to the realization of the crisis: (a) lost of better and qualified nurses to hospitals abroad, (b) local hospitals are left with inexperienced nurses; (c) local hospitals are losing medical doctors because of shifting profession and the decline in medical enrollment (Tullao, 2007b).
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Because of the intensity of the global demand for nurses, even nursing instructors and qualified teachers are attracted to migrate. This may even have serious and long-term implications on the quality of health service in the economy as the ability of the economy to produce competent nurses is severely threatened because even clinical instructors are migrating abroad.
As it is the current huge demand for nursing education in the Philippines is intended to respond to the growing needs for nursing services in developed economies instead of answering the needs of the economy particularly in the rural areas where there are critical shortages of nurses. The possibility of overseas employment and the high compensation to such employment opportunities may increase the rate of return and demand for nursing education. However, such huge demand for nursing education may not reflect the human resource requirements of the economy. Worse, even if this enhanced demand for nursing education does reflect the manpower requirements of the domestic economy, graduates from these programs may not be attracted to the domestic economy and local employment but to overseas market (Tullao, 2007b).
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BUSINESS IMPLICATIONS OF TEMPORARY LABOR MIGRATION
The effects of migration prospects on human capital formation have been the focus of several studies suggesting that such prospects may in fact foster human capital formation and growth in sending economies. If the return to education is higher abroad than at home, the possibility of migration increases the expected return to human capital, thereby enhancing domestic enrolment in education. More people, therefore, invest in human capital as a result of increased migration opportunities. This acquisition can contribute to the dynamism in the educational sector.
This impact on demand for education has been empirically verified based on the Family Income and Expenditure Survey (FIES) for 1988, 1994, and 2000. The expenditure share of education in households with remittance is greater as compared to expenditure shares of households without remittance income. In Table 7A we have the share of education in total family expenditure for all families, families without remittance income and families with remittance income for all income groups.
The allocation of budget for education spending, moreover, is increasing with income. In other words, all things being equal, households with remittance income invest more in education as their income level increases. They invest more especially in high quality
education specifically from good schools that charge high tuition fees and sometimes in courses that will yield higher compensation in the future such as nursing, which require more resources in the completion process (Tullao, Cortez, and See, 2005).
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TABLE 7A Share of Education Expenditures to Total Family Expenditures (in %) 2000 Income Decile Full Sample Without Remittances With Remittances First 1.1 1.1 1.3 Second 1.6 1.6 1.5 Third 2.0 1.9 2.5 Fourth 2.4 2.3 2.7 Fifth 2.7 2.6 3.1 Sixth 3.0 2.9 3.5 Seventh 3.6 3.3 4.4 Eight 4.0 3.8 4.6 Ninth 5.1 4.7 6.0 Tenth 6.5 6.3 6.8
Source: Tullao, Cortez, and See (2005)
TABLE 7B Estimated Expenditure Elasticity for Education for 2000 Income Decile Full Sample Without Remittances With Remittances First 1.75 1.74 1.67 Second 2.26 2.31 0.90 Third 2.46 2.42 3.20 Fourth 2.07 2.11 1.62 Fifth 2.30 2.27 2.26 Sixth 2.32 2.30 2.51 Seventh 1.91 1.97 1.44 Eight 2.19 2.21 1.98 Ninth 3.16 2.15 2.19 Tenth 1.55 1.62 1.40
Source: Tullao, Cortez, and See (2005)
This enhanced demand for education has been answered by the ability of the private educational institutions to respond to the changes in the international labor market by opening new nursing programs or expanding existing ones. As the demand for education increases rapidly as a result of external migration, the need for more teachers and educational inputs becomes more pronounced to sustain the increased demand in education.
Shown in Table 7C is the level of enrollment for medical and allied courses from academic years 1998 to 1999 up to 2004 to 2005. It can be observed that there is a growing trend of enrollees in medical related courses. The increased enrollment will ultimately result to an increased level of graduates as shown in Table 7D. For the academic year 2004 to 2005,
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enrollees and graduates account for approximately 20% and 10% of the total enrollment and graduates across all degrees respectively. What is observed in this data is that majority of the enrollees and graduates are coming from the nursing programs.
The increasing demand for medical and allied courses specifically in nursing as shown in Table 7E and inevitable labor migration of health professional has opened opportunities to some sectors. Firstly, due to the high level of demand for nurses abroad, nursing schools in the Philippines has been emerging incessantly. Ronda (2008) cited that the problem is the proliferation of nursing diploma mills or schools offering poor quality nursing education. This has the potential of damaging the status of the Philippines as the leading producer and exporter of high-quality nurses in the international labor market. This fear is not unfounded as shown by the unsatisfactory passing rate in the licensure examination for nurses. The Commission on Audit (COA) reported that from 2001 to 2005, only 42.2 percent of the nursing schools across the Philippines managed to have at least 50 percent of their graduates pass the Professional Regulation Commission (PRC) licensure exams, with 7.22 percent of these schools failing to have even a single passer.
In addition, the large demand for Filipino nurses abroad entices illegal recruiters. The study by AcademyHealth zeroes in on the unethical practices on the recruitment of Filipino nurses that result to lower salary and substandard living conditions for Filipino recruits. Some unfortunate Filipino nurses hired under unethical recruitment practices receive lower compensation than what was promised them. Besides, Filipino nurses are treated as secondclass citizens and are not permitted to socialize because there would be instances wherein they would be plucked out of their day off for another day of hard work (Esguerra, 2008).
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Aside from these problems, illegal fee extorted by the recruiters is also prevalent, which is unethical according to Esguerra (2008) because these recruiters have already received payments from the hospitals. Selling of contracts is also rampant as well as the breach of contract by the employers wherein Filipino nurses abroad were strained into working under staffing agencies or doing a job entirely different from the one stipulated in the contract (Esguerra, 2008).
Esguerra (2008) recommended that the government of economies absorbing Filipino professionals and skilled workers such as the United States should have a broad national policy against illegal and unethical recruiters as well as abuses on foreign immigrant workers.
TABLE 7C Enrolment for Medical and Allied Courses from Academic Year 1998 to 1999 up to Academic Year 2004 to 2005 Academic Year Medical and Allied Courses Total Enrolment 1998 to 1999 155,868 2,279,314 1999 to 2000 150,634 2,373,486 2000 to 2001 141,771 2,430,842 2001 to 2002 164,000 2,466,056 2002 to 2003 220,195 2,426,976 2003 to 2004 321,571 2,431,378 2004 to 2005 445,729 2,402,315
Source: Commission on Higher Education
TABLE 7D Graduates for Medical and Allied Courses from Academic Year 1998 to 1999 up to Academic Year 2004 to 2005 Academic Year Medical and Allied Courses Total Graduates 1998 to 1999 34,218 334,564 1999 to 2000 30,053 350,807 2000 to 2001 27,296 363,640 2001 to 2002 26,474 383,839 2002 to 2003 33,547 405,716 2003 to 2004 41,688 386,920 2004 to 2005 34,218 334,564
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AY 98-99 AY 99-00 AY 00-01 AY 01-02 AY 02-03 AY 03-04 AY 04-05
Table 7E Enrolled and Graduates by Selected Medical Courses for Academic Year 2001 to 2002 up to Academic Year 2004 to 2005 Nursing Dentistry Medicine Others Enrolled Graduates Enrolled Graduates Enrolled Graduates Enrolled Graduates 25,256 11,097 9,500 1,239 12,824 2,171 108,288 19,711 25,388 8,097 9,595 1,460 14,545 2,496 101,106 18,000 27,142 5,483 8,840 1,259 15,176 2,214 90,613 18,340 48,221 4,183 1,031 110 13,838 2,723 100,910 19,458 92,106 5,425 7,112 1,260 15,148 2,802 105,829 24,060 178,626 8,477 6,617 1,286 11,511 2,420 124,817 29,505 293,626 14,334 5,343 1,133 11,197 2,721 135,563 16,030 Another important business implication of temporary labor migration is the utilization
of remittances coming from OFWs. The amount of annual OFW remittances is at least 5 times higher than the combined value of ODA and foreign direct investments that the economy receives. This huge magnitude of OFW remittances has several implications on the balance of payments, the real value of the currency and in mitigating the social and economic cost of securing ODA and FDI to finance international payments.
Given the importance of mobilizing resources for developing communities, it is now the tasks of various sectors including the financial institutions, local government units (LGUs) and non-government organizations (NGOs) to convince OFWs and their families on the value of savings by re-channeling their expenditures from current consumption towards financial investment and savings.
One way of addressing this loss in comparative advantage is to channel the remittance income towards the production of non-tradable goods which can stabilize the relative prices of non-tradable goods. One important effect of price stability is to mitigate the resource reallocation effect of the appreciation of the real exchange rate as a result of the inflows of OFWs remittances. One avenue where remittances can be channeled is through the various
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instruments offered by the formal financial intermediaries. Tullao (2007a) suggested possible options that non-government organizations like cooperatives can pursue. Remittances can be used to finance local government projects, finance micro enterprises, provide credit that will compete with the informal financial intermediaries, finance migration expenses, finance human capital investment of community members, and finance consumption expenditures of dependent households.
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AREAS FOR REGIONAL COOPERATION
In the light of increasing forces of globalization and the regional economic and demographic asymmetries the movement of workers across the Asia and the Pacific region will persist in the future. If the economies in the region are going to harness the positive benefits of temporary labor migration and mitigate its negative effects on both the sending and host economies there is a need to discuss avenues for regional cooperation. There are three main areas that can be discussed and explored for possible regional cooperation in the movement of laborers: access, protection and impact.
Access refers to a host of issues on how to ease the intra-regional flows of workers. These issues include the immigration policies and domestic regulatory framework of laborimporting economies that may restrict the entry and employment of foreign workers. Aside from institutional and regulatory restrictions there are also cultural barriers to cross border movement of workers. Language is one of the main barriers in the region there being no common regional language. Funding is likewise an access issue since migration is a costly investment in human capital. In the Philippines many of those who are able to reap the benefits of overseas employment are the more educated and those coming from middle and high income brackets. Limited financial capability and no access to credit may prevent the poorer segment of society to seek employment overseas.
Given these issues on access, there are possible measures that can be implemented to address these. For regulatory measures, liberalization of immigration polices to allow ease in the movement of workers can be explored at the regional level. Technical barriers such as
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language and cultural barrier can be addressed through technical assistance coming from host economies to sending economies on the funding and provision of language training programs and inter-cultural seminars. Another area for consideration and regional cooperation is the convergence of regulatory measures in the region through mutual recognition arrangements. This will allow recognition of educational qualifications, training, work experience and licensure examinations so that professionals can easily work within the region. In addition, there should also be a discussion on limiting the levies imposed on foreign workers. There are economies that charge higher levies on less skilled workers making it costlier and difficult for the poorer segment of society to participate in reaping the benefits of overseas employment.
The issue of protection refers to the working conditions in host economies so that foreign workers are not exposed unduly to exploitation, abuse and maltreatment. Filipino entertainers, for example, working in Japan are not considered part of the labor force and therefore not covered by the legally mandated benefits and protection enjoyed by local workers. They receive their payment usually at the end of a long contract instead of a regular payment scheme (Tullao & Cortez, 2004). In addition, many Filipinos working as trainees in developed economies in the region are exploited to a certain extent because they are treated as regular workers without the appropriate compensation. Many Filipino domestic helpers complain that their passports and other travel documents are confiscated by their employers for security measures during the duration of their employment. Although these issues on protection are addressed bilaterally, the region through the initiative of the ASEAN+3 and the International labor Organization (ILO) can discuss the establishment of a framework agreement towards the protection of foreign workers given the magnitude of foreign workers and the high incidence of abuse.
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The issue of impact refers to the negative consequences that temporary labor migration may bring to the family, community, and the sending as well as the receiving economies. This may result to brain drain, overexpansion of education, and the appreciation of the real exchange rate due to the remittances sent to the sending economy. On the other hand, receiving economies are also experiencing the social impact of entry of foreign workers in terms of stress on the social services and inter-cultural conflicts.
For the re-allocation effect of the appreciation of the real exchange rate, sending economies may adopt measures to mitigate the impact of remittances on the real exchange rate. Re-channeling expenditures towards investments and the increasing the production of non-tradable goods including education and health may mitigate the inflationary impact of appreciation of the real exchange rate on the non-tradable sector. As a consequence it can also minimize the displacement of industries that may lose their comparative advantage due to the appreciation of the real exchange rate.
For the problem of brain drain and loss of skilled professionals, sending economies may be compensated for the loss in human power. Receiving economies can provide assistance particularly in enhancing the education sector of the sending economies. Compensation is needed for sending economies that are losing health professionals due to migration on several grounds. Sending economies are the ones that trained these professionals and spent huge amount of resources. If the training costs in the sending economy are substantially lower than in the receiving economy, this can result to a reverse transfer of technology. Fairness demands that poor labor sending economies should be compensated for implicitly subsidizing the education of health professionals in developed economies. Moreover, with the loss of these health professionals, the health sector of the
49
sending economy is imperiled and therefore should be given assistance.
Economists have attempted to deal with the international brain drain problem. Bhagwati and Partington (1976) proposed a variety of tax-transfer schemes but the welfare implications of labor mobility between nations are unclear because the individual and state objectives may conflict. However, a coordinated international response to address this issue never materialized. The issue of a brain drain tax should be an issue that can be tackled at regional or global level to compensate the sending economy.
Another area for cooperation is in the area of human resource development. Since movement of workers is based on the quality of human capital, there is a need to assist the sending economies to maintain, if not improve, their quality of education. If there is cost differential in the training, receiving economies should assist in the educational system because well educated individuals in other economies are potential productive workers domestically and regionally in the future.
What to do with returning migrants is another potent area for cooperation. Although this is the problem of the sending economy, the receiving economy can also assist the migrant worker to learn technical and other employable skills that migrant worker can utilize upon return to the economy of origin. This will facilitate re-entry and may solve the problem of overstaying and seeking permanent residence in the host economy that may draw greater social costs. There should be a discussion on how to make return migration an attractive option for temporary foreign worker. For example, they can given an attractive retirement/social security benefits that they can use if they return to their home economies. This may encourage return migration since there is a spatial differential in the cost of living.
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CONCLUSION
It has been documented in many studies that indeed temporary international labor migration has contributed significantly to the dynamism of the Asia Pacific region. The deployment of domestic workers to more vibrant economies like Hong Kong, Singapore, and Chinese Taipei has contributed to the rapid growth of these economies not only through the direct employment of these workers but also indirectly as women were released from household chores and entered and further expanded the labor force. The economic prosperity that Singapore, Malaysia, South Korea, Chinese Taipei, Hong Kong and Japan are currently enjoying will not be possible without the migrant workers from Southeast Asia that augmented their shortages in the labor force.
Sending economies have also enjoyed the benefits of temporary labor migration. It has received substantial remittances from workers and contributed positively to the stability and growth of their economies. On the other hand, receiving economies are apprehensive about the growth of foreign workers with its impact on the social infrastructure as well as in undermining societys cultural homogeneity.
There is a need to discuss these issues and harness the potential contributions of international migration on both sending and receiving economies and mitigate its negative impact. The issues of access, protection, and impact pertaining to the temporary international labor migration should be the focal points in any regional discussion on this contemporary phenomenon. Some of the areas for regional cooperation should include liberalization of immigration policies, convergence of domestic policies pertaining to the employment of
51
foreign workers, decreasing the cost of migration, human resource development, brain drain tax, increasing the incentive for return migration and protection of migrant workers, among others. The resolution of these issues will enhance the benefits already enjoyed from temporary migration and mitigate its negative consequences.
However, the proposed regional discussions of issues are meant primarily to respond to the economic and demographic asymmetries in the region. By removing these kinks we can harness the potentials of economic and demographic complementation towards an increase and ease in the movement of human resources. But resolution of these issues is premised on a view that existing regional asymmetries will and should persist in the future. However, if the objective is to move towards enhanced regional integration and not simply to exploit opportunities of the unevenness of economy and demography, then what is needed is regional cooperation meant to address the economic and demographic gaps. But if such perspective is going to be pursued; once the gaps are narrowed down it is possible that movement of workers inter-regionally will not be as massive as today. Movement of workers across the region will no longer be based on economic and demographic imbalances but based on the workers preferences and attraction of destination in terms of working conditions and living environment. However, narrowing economic and demographic gaps is a long-term objective. For now, we have to contend with harnessing the opportunities offered by economic and demographic asymmetries in the region.
In an era of increasing globalization and trade liberalization, the one significant exception to free markets today has been the free movement of people. Few bilateral and multilateral agreements exist for international migration and for many migrant workers, Filipinos included, the absence of any protection under the law has led to exploitation and
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abuse. While many receiving economies claim a belief in free markets, including labor markets, they use highly restrictive and bureaucratic regulations to control cross-border labor migration, particularly of unskilled workers.
In view of the difficulty of successfully negotiating formal bilateral agreements, alternative mechanisms have been employed by some sending economies to protect their workers. Go (2007) enumerated the following. First, a joint liability between local employment agency and foreign employer could be implemented. RA 8042 stipulates joint liability between the local employment agency and the foreign employer for violations of the foreign employer. Second, there should be selective deployment ban to economies that are violating workers rights. Third, there should be a formulated standard model of employment contracts. Fourth, there should be a ratification of migrant worker instruments. Note that the Philippines is the model in Asia, having ratified all three international migrant worker conventions namely 2 ILO Conventions and 1 UN Convention. Fifth, governments should push migrants rights and migrant protection standards in international forums such as in the Asia Pacific Economic Cooperation (APEC). Sixth, a steering committee, composed of senior officials of both partner economies must be established which will meet at least once a year to review the memorandum of understanding and to coordinate the implementation of programs. In line with this, joint working groups must also be established in receiving economies through the respective embassies or labor offices to promote and protect the welfare and rights of their migrant workers. These joint working groups are to meet regularly and are to pursue programs on site in close coordination with the steering committee.
Consequently, the implementation of agreements in accordance with its scope between the Philippines and its partner economies will be interesting to monitor since it can
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serve as a test case for the viability and the effectiveness of collaborative efforts by receiving economies to gain leverage and to consolidate their strengths toward protecting the welfare and rights of their migrant workers.
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REFERENCES Arenas, M.L. Population Growth and Philippine Development. Retrieved December 26, 2007 from http://www.ey.com/GLOBAL/content.nsf/Philippines/ Population_growth_and_Philippine_development, 2006. Asia Pulse. Philippine Senate Ratifies Two International Labor Conventions. Retrieved April 4, 2008 from http://sg.biz.yahoo.com/060201/16/3ycqx.html, 2006. Bhagwati and Partington. Taxing the brain drain. North Holland Publishing Company. Columbia University Press, 1976. Center for Reproductive Rights. Laws and Policies Affecting their Reproductive Lives Philippines. Retrieved December 14, 2007 from http://www.reproductive rights.org/pdf/Philippines.pdf, 2005. Dolan, R.E. Philippines: A Country Study. Washington: GPO for the Library of Congress, 1991. Esguerra, C.V. So, you want to be a nurse in the US. The Philippine Daily Inquirer, January 2008. Go, S.P. Asian Labor Migration: The Role of Bilateral Labor and Similar Agreements. Paper prepared for the Philippine Migration Research Network. Presented at the Regional Informal Workshop on Labor Migration in Southeast: What Role for Parliaments, 21-23 September 2007, Manila, Philippines. Gorgonio, L. Bilateral Labor Ties with OFW Host Countries Urged. Retrieved April 4, 2008 from http://www.gmanews.tv, 2007. Gultiano, S. and Xenos, P. Age-structure and Urban Migration of Youth in the Philippines. Retrieved December 26, 2007 from http://www.cicred.org/Eng/ Seminars/Details/Seminars/Popwaves/PopwavesGultiano.pdf, 2004. Lustig, N. Extract from a Report from the Exploratory Mission on Population and Poverty. Retrieved December 26, 2007 from http://www.iussp.org/Activities/sccpov/pov-outline.php, 1998. Macaraeg, E. Is a Modern Exodus Going On Unnoticed? United News Asia. Retrieved October 19, 2007 from http://www.ucg.org.ph/una/0511/commentary.htm, 2005. Malonzo, J.D.R. Philippines - Japan Pact: Japan's Economic Takeover. IBON Features Vol X No. 47, n.d. Manalansan, E. Brain Drain Refrain. Retrieved October 26, 2007 from http://bulatlat.com/news/2-50/2-50-braindrain.html, 2003. National Statistics Office. Index of Labor Force Statistics. Retrieved December 27, 2007 from http://www.census.gov.ph/data/sectordata/datalfs.html, 2006.
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Philippine Overseas Employment Administration (POEA). OFW Global Presence: A Compendium of Overseas Employment Statistics. 2006. Ronda, R.A. Diploma mills hurting RP nursing education COA report. The Philippine Daily Inquirer, January 2008. Saporta, C. Organizing Filipino Registered Nurses: A Social Movement Unionism Approach. Retrieved December 28, 2007 from http://departments.oxy.edu/uepi/ uep/studentwork/04comps/saporta.pdf, 2004. The Manila Mail. RP tutors join exodus. Retrieved October 27, 2007 from http://www2.manilamaildc.net/article908.html, 2007. Tullao, T. Impact of Filipino Overseas Labor Remittances on the Real Exchange Rate. Impact of Overseas Filipino Labor Migration on Macroeconomic Stability, the Labor market and Human Resource Development. Proceedings of the Fourth Ambassador Alfonso Yuchengco Policy Conference .Yuchengco Center. De La Salle UniversityManila, 2007a. Tullao, T. Impact of External Migration on the Demand for Education. Impact of Overseas Filipino Labor Migration on Macroeconomic Stability, the Labor market and Human Resource Development. ). Proceedings of the Fourth Ambassador Alfonso Yuchengco Policy Conference .Yuchengco Center. De La Salle University-Manila, 2007b. Tullao, T. & Cortez, M. Movement of Natural Persons and Human Development. United Nations Development Program (UNDP) Discussion Paper, 2003. Tullao, T. & Cortez, M. Movement of Natural Persons Between the Philippines and Japan: Issues and Prospects. Philippine Institute for Development Studies, 2004. Tullao, T. & Cortez, M. Issues and prospects on the movement of natural persons and human capital development in the Philippine-American economic relations. Philippine Institute for Development Studies, 2006a. Tullao, T. & Cortez, M. Enhancing the movement of natural persons in the ASEAN region: prospects and constraints. Asia Pacific Trade and Investment Review. United Nations Economic and Social Commission for Asia and the Pacific. Vol. 2, No.2., 2006b. Tullao, T., Cortez, M, and See, E. The Economic Impacts of International Migration: A Case of the Philippines. East Asia Development Network (EADN) International Migration Project, 2005. Uy, V. 350,000 jobs available in Canada province over next 12 years. INQUIRER.net, 2008a. Uy, V. France eases labor migration rules for Filipinos envoy. INQUIRER.net, 2008b.
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ILM 2008 Seoul SEA Philippines Tullao

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Case Study by Economy Southeast Asia

Prof. Tereso S. Tullao, Jr. De La Salle University - Manila

MAGNITUDE OF EXTERNAL MIGRATION IN THE PHILIPPINES

992,397 16,521 1,295 190,530 290,171 145,608 187,878 121,836 29,886

1,029 1,056 1 1 16 12 46 35 56 54 277 264 23 31 249 279 360 381 1 -

OCEANIA Australia New Zealand Others / Unspecified SEABASED WORKERS

238,730 218,425 19,549 756 0

74,813 15,100 742 58,971 274,497

26,420 3,000 120 23,300 0

339,963 236,525 20,411 83,027 274,497

DEMOGRAPHIC CHANGES AND POLICIES IN THE PHILIPPINES

Source: National Statistics Office

Source: National Statistics Office

MANAGEMENT OF TEMPORARY LABOR MIGRATION IN THE PHILIPPINES

BENEFITS AND COSTS OF TEMPORARY LABOR MIGRATION

LABOR MIGRATION OF HEALTH PROFESSIONALS

117 33 576 325

BUSINESS IMPLICATIONS OF TEMPORARY LABOR MIGRATION

AY 98-99 AY 99-00 AY 00-01 AY 01-02 AY 02-03 AY 03-04 AY 04-05

Source: Commission on Higher Education

AREAS FOR REGIONAL COOPERATION

sending economy is imperiled and therefore should be given assistance.

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