AS we heave sighs of relief after Mary Jane Veloso was given a reprieve, we will still grapple with the reality surrounding her current predicament. What this is essentially is a public trial of what is the government policy on overseas work. Because the bottom line of all this is that she was looking for work outside the country. This continues to happen every day despite the improving economy in the last five years.
Official data shows that unemployment has remained relatively lower compared to previous years. Surveys also show that there are actually jobs available but the issue is the availability of skills and competence. It is, therefore, critical to understand why the desire for overseas work continues and understand the profile of those who are leaving.
Mary Jane’s supposed work as a domestic helper more or less represents the current trend of Philippine overseas work. Data from the Philippine Overseas Employment Administration (POEA) shows that domestic work is the top occupation for deployment. It represents a third of the total newly hired workers abroad with about 164,000 new hires in 2013, registering the highest domestic work deployment. This has increased significantly from 68,000 in 2000 with the hundred thousandth barrier being breached in 2011.
Of the 164,000 domestic workers, about 97 percent are women. In the past 10 years, the trend of deployment reveals that the overall increase in deployment has largely been due to increases in the service work mostly in the domestic help occupation. Professional and other high-skilled occupations have relatively stayed in the same level annually.
Further analysis from the Survey of Overseas Filipinos (SOF) also reveals that the domestic workers are not really receiving a higher level of salaries, even as they leave for abroad. In the table below, it can be seen comparing the year 2002 and 2013, the salaries of domestic helpers (lumped together with service workers and possibly some unskilled) have not increased substantially, although their share to total number of workers have increased.
The estimated peso conversion of the average remittances are just roughly above P7,500.00 for the female service workers, and P6,000 for female unskilled workers in 2013 prices. The male salaries are at least P2,000 higher for both categories. This is despite the requirement of a $400 minimum salary for Filipina domestic helpers.
On a broader and long-term perspective, these information is showing that, while current level of overall remittances maybe increasing ($24 billion as of end 2014), their per-capita level is falling. This is telling us that the migration trend is now being dominated by lower-skilled workers.
Furthermore, these information are providing overall scenarios, but they are unable to show details of the migration processes that happen within regions, provinces, towns and households, which ultimately make the decision to migrate. After more than 40 years of experience, various laws passed and studies made on the migration phenomenon, the country continues to be challenged by differing issues and opportunities. This brings the point that the difficulty of managing migration is that it is ultimately a household decision. The framework of the household in making the decision to work abroad is dependent on a lot of factors beyond the salary that will be received abroad.
I recall a conversation with five young mothers from our church who came from Mindanao. As the service ended, they asked to be prayed for in their forthcoming departure to the Middle East. After the prayer, I asked them about their families that they will leave behind, especially the young children. They said that it is necessary to leave and that it will be their parents who will take care of their children while their husbands work in the farm. When I asked about how much will they be receiving? They said net of the payables (they borrowed money to be able to leave) it will roughly be about P7,000. I told them that they could earn that here in the Philippines—yes, they agreed, but not in their rural hometowns. Yes, there is work. But the work does not pay enough or is seasonal. What they need is a regular income that can sustain their families.
With 66 percent of overseas workers tracing their roots to rural hometowns, the shift of the migration occupation to lower skilled workers will continue, lest there are sustained work opportunities in the countryside. The key, therefore, is making our localities provide complete options before the potential migrant and the family make a decision. Toward this, the role of local governments has to be pushed for holistic developments.
They should be working on making their localities attract capital and business. They should be providing broader and complete information for potential migrants. The pre-employment orientation seminar and the pre-departure orientation seminar can be implemented in partnership with local governments. The role of the different levels and agencies of government is to provide the environment for our people to have hope. If the decision is to leave, it must be a sound decision based on a cost-benefit analysis of correct information.
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Alvin P. Ang, PhD, is Professor of Economics and Senior Fellow of Eagle Watch, the macroeocnomic and forecasting unit of the Ateneo de Manila University. To contact the author, e-mail opinion@businessmirror.com.ph.
1 comment
While the assertions of Dr. Ang in the article are true, there are also other factors which need to be considered why Filipino domestic helpers opt to work abroad in spite of the fact that they can have same earnings in the Philippines.
One of the more obvious reasons is the fact that opportunities for cross country (in Canada for example) become available to Filipino domestic helpers working abroad. In this case, they are taking chances for a much better long-term opportunities.
Another reason for domestic helpers is that working abroad affords them to travel, see new places and experience new culture. Unlike working in the Philippines, it is generally viewed as restrictive and narrow when it comes to perspective/opportunities. Working abroad carries with it the prestige of earning in dollar rate and some even take chances of meeting a foreign spouse. For more fortunate domestic helpers, their bosses would even give them branded bags (such as Louis Vuitton), clothing or accessories.
Generally, Filipinos opt to work abroad to avail of tax incentives. There are OFW’s whose countries of destination do not charge any tax (e.g. Middle East and South Korea). In our case, we only pay 15% tax to Singapore government. But in the Philippines, we have to pay 32% tax. In here, we can see a substantial amount of tax savings.
Another less obvious reason (or maybe obvious to some), is the social dynamics in Filipino organizations. Sometimes, employees perceive their employers or bosses to be unfair. There is still this prevalence of favoritism and unsound/orthodox company policies. Unlike in workplaces abroad, the playing field is “flatter” and more advanced in outlook.
Lastly, countries such as South Korea and Singapore afford its workers comfort and convenience with the available public infrastructures such as efficient and clean transport system and safe thoroughfares.
To counter the ever increasing magnitude of Filipino workers’ diaspora, it would be prudent as a matter of public policy to look at the aspects mentioned above.