LABOR MIGRATION & THE OFW

PHENOMENON

What is migration?

■ Migration – refers to the movement of people from one place to another.

■ 2 Types of Migration:

a. Internal Migration – refers to the movement of people within one country i.e. rural to urban migration

b. International Migration – refers to the movement of people from one country to another

Causes of Migration

■ Poverty

■ Unemployment

■ Victims of natural calamities

■ Improve standard of living

■ Better education

■ Better environment

■ Economic Security

EFFECTS OF MIGRATION

Positive Effects Negative Effects

Increase labor supply Overcrowding

Cheap labor Lack of housing facilities

Traffic congestion

Heavy pollution in air,

water, noise

Unemployment

Occurrence of squatter

areas

■ Labor migration – is the process of shifting a labor force from one physical location to another

■ Labor migration takes place with the support of labor force

Causes of labormigration

1. The desire of job seekers to increase income and to improve the standard of living

2. The emergence of new industries

3. The relocation of production facilities of a given business to a new area.

What are OFWs?

■ Overseas Filipino Workers (OFWs) – are Filipinos who are presently and temporarily working outside the country. They may be land-based of sea-based workers.

Ex. Domestic Helpers, Teachers, Seamen, Nurses

In 2014, there are 1,832,668 OFWs

Land-based – 1,430,842

Sea-based – 401, 862

Source: POEA (Philippine Overseas Employment Administration)

REASONS BEHIND THE

OFW PHENOMENON

1.High Unemployment Rate

- Newly graduates join the labor force that increases the competition in the labormarket. Instead of waiting for them to be hired locally, Filipinos seek employment overseas.

2. Low Salary offered by employers in the Philippines

- Filipinos are willing to work abroad due to low salary. Even professionals like nurses, engineers and teachers would prefer to work abroad as household help or office workers because of the higher salary offered overseas.

3. Discrimination in job hiring in the Philippines

- local employers tend to hire candidates even if they’re not the most qualified for jobs. The qualified and overage applicants who were not able to find jobs decide to work abroad.

4. High Withholding Tax

- The Philippines has a high income tax rates for workers. Workers’ take home pay decreases after deducting the withholding tax, GSIS/SSS premium, Pag-ibig and Philhealth and other mandatory deductions.