Remittances rise as more professionals turn OFWs
MORE PROFESSIONALS are leaving the Philippines for work abroad, bumping up remittances that are keeping the economy afloat.
The National Statistics Office’s (NSO) 2012 Survey on Overseas Filipinos showed the number of overseas Filipino workers (OFWs) increasing to 2.22 million last year, up from 2.16 million the year before.
Professionals comprised 12.4% of the total number of OFWs, while officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors made up 3.2%, higher respectively than the 10.6% and 2.9% recorded the year before.
More Filipinos also left for abroad to work as clerks (5.8% from 5.5%), and as service workers and shop and market sales workers (16.2% from 15.5%).
On the other hand, deployment of trade and related workers, plant and machine operators and assemblers, and laborers and skilled workers slowed. Trade and related workers comprised 0.1% of the total number of OFWs, down from 0.4% in 2011 while plant and machine operators and assemblers made up 12.9%, down from 13.6%.
Laborers and unskilled workers still comprised the largest group of OFWs, but their proportion fell to 31.3% from 32.7%.
More OFWs in 2012 meant more remittances: P165.63 billion versus P156.34 billion in 2011.
Professionals contributed the most, sending home a total of P24.78 billion, a fourth more than the year before. Each remitted an average of P109,000, rising from P99,000.
Ranking behind them in terms of remittances were laborers and unskilled workers who came up with P19.63 million, 11% less compared to the previous year. Remittances averaged P35,000 per worker, dropping from P37,000 each in 2011.
Remittances are supporting personal consumption, which accounts for around 70% of the country’s gross domestic product.
Bangko Sentral ng Pilipinas data showed that overseas Filipinos sent home a total of $20 billion in 2011, and $21 billion the following year. It expects a 5% rise in remittance inflows this year.
“Overseas Filipinos,” which encompass permanent migrants, temporary migrants (mostly OFWs) and irregular migrants totaled 10.5 million, about a tenth of the population, based on the Commission on Filipinos Overseas’ count as of 2011.
Fernando T. Aldaba, an economics professor at the Ateneo de Manila University, said the exodus of professionals is expected to continue “as long as there is a huge wage differential between destination countries’ rates and the Philippines’.”
Remittances might be higher but the country loses in the long run from the contributions they would have made owing to their higher education. The problem is exacerbated when they do not return to the Philippines.
“Politically, these permanent migrant workers should have been members of a growing middle class that will clamor and demand more governance reforms,” Mr. Aldaba added.
Jobs in tourism and business process outsourcing might hold them back but professionals are expected to continue to seek better opportunities abroad especially as the world economy improves, he pointed out.
The Survey on Overseas Filipinos, done annually, "aims to derive national estimates on the number of overseas Filipino workers, their socio-economic characteristics and the amount and mode of remittances, in cash and in kind, received by their families," the NSO said.
The survey covered those aged 15 years and older and who worked abroad from April 1 to Sept. 30, 2012.
"OFWs" pertained to those who had work contracts, working visas and work permits. Those without these documents but were employed were also covered by the survey.
Results of the NSO survey also showed that overseas contract workers -- those with contracts -- comprised 95% of the total number of OFWs.
Saudia Arabia was the preferred destination for around 21% of OFWs, followed by the United Arab Emirates, Singapore and Qatar.
Most OFWs sent cash to families in the Philippines through banks. They also brought some cash home, or sent remittances in kind. Other channels aside from banks were door-to-door services, agencies or local offices and friends and co-workers. -- Judy T. Gulane - See more at: http://research.bworldonline.com/print_preview.php?article_id=195#sthash.kyUldvHf.dpuf
MORE PROFESSIONALS are leaving the Philippines for work abroad, bumping up remittances that are keeping the economy afloat. MORE PROFESSIONALS are leaving the Philippines for work abroad, bumping up remittances that are keeping the economy afloat.
The National Statistics Office’s (NSO) 2012 Survey on Overseas Filipinos showed the number of overseas Filipino workers (OFWs) increasing to 2.22 million last year, up from 2.16 million the year before.
Professionals comprised 12.4% of the total number of OFWs, while officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors made up 3.2%, higher respectively than the 10.6% and 2.9% recorded the year before.
More Filipinos also left for abroad to work as clerks (5.8% from 5.5%), and as service workers and shop and market sales workers (16.2% from 15.5%).
On the other hand, deployment of trade and related workers, plant and machine operators and assemblers, and laborers and skilled workers slowed. Trade and related workers comprised 0.1% of the total number of OFWs, down from 0.4% in 2011 while plant and machine operators and assemblers made up 12.9%, down from 13.6%.
Laborers and unskilled workers still comprised the largest group of OFWs, but their proportion fell to 31.3% from 32.7%.
More OFWs in 2012 meant more remittances: P165.63 billion versus P156.34 billion in 2011.
Professionals contributed the most, sending home a total of P24.78 billion, a fourth more than the year before. Each remitted an average of P109,000, rising from P99,000.
Ranking behind them in terms of remittances were laborers and unskilled workers who came up with P19.63 million, 11% less compared to the previous year. Remittances averaged P35,000 per worker, dropping from P37,000 each in 2011.
Remittances are supporting personal consumption, which accounts for around 70% of the country’s gross domestic product.
Bangko Sentral ng Pilipinas data showed that overseas Filipinos sent home a total of $20 billion in 2011, and $21 billion the following year. It expects a 5% rise in remittance inflows this year.
“Overseas Filipinos,” which encompass permanent migrants, temporary migrants (mostly OFWs) and irregular migrants totaled 10.5 million, about a tenth of the population, based on the Commission on Filipinos Overseas’ count as of 2011.
Fernando T. Aldaba, an economics professor at the Ateneo de Manila University, said the exodus of professionals is expected to continue “as long as there is a huge wage differential between destination countries’ rates and the Philippines’.”
Remittances might be higher but the country loses in the long run from the contributions they would have made owing to their higher education. The problem is exacerbated when they do not return to the Philippines.
“Politically, these permanent migrant workers should have been members of a growing middle class that will clamor and demand more governance reforms,” Mr. Aldaba added.
Jobs in tourism and business process outsourcing might hold them back but professionals are expected to continue to seek better opportunities abroad especially as the world economy improves, he pointed out.
The Survey on Overseas Filipinos, done annually, "aims to derive national estimates on the number of overseas Filipino workers, their socio-economic characteristics and the amount and mode of remittances, in cash and in kind, received by their families," the NSO said.
The survey covered those aged 15 years and older and who worked abroad from April 1 to Sept. 30, 2012.
"OFWs" pertained to those who had work contracts, working visas and work permits. Those without these documents but were employed were also covered by the survey.
Results of the NSO survey also showed that overseas contract workers -- those with contracts -- comprised 95% of the total number of OFWs.
Saudia Arabia was the preferred destination for around 21% of OFWs, followed by the United Arab Emirates, Singapore and Qatar.
Most OFWs sent cash to families in the Philippines through banks. They also brought some cash home, or sent remittances in kind. Other channels aside from banks were door-to-door services, agencies or local offices and friends and co-workers. -- Judy T. Gulane - See more at: http://research.bworldonline.com/print_preview.php?article_id=195#sthash.kyUldvHf.dpuf
The National Statistics Office’s (NSO) 2012 Survey on Overseas Filipinos showed the number of overseas Filipino workers (OFWs) increasing to 2.22 million last year, up from 2.16 million the year before.
Professionals comprised 12.4% of the total number of OFWs, while officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors made up 3.2%, higher respectively than the 10.6% and 2.9% recorded the year before.
More Filipinos also left for abroad to work as clerks (5.8% from 5.5%), and as service workers and shop and market sales workers (16.2% from 15.5%).
On the other hand, deployment of trade and related workers, plant and machine operators and assemblers, and laborers and skilled workers slowed. Trade and related workers comprised 0.1% of the total number of OFWs, down from 0.4% in 2011 while plant and machine operators and assemblers made up 12.9%, down from 13.6%.
Laborers and unskilled workers still comprised the largest group of OFWs, but their proportion fell to 31.3% from 32.7%.
More OFWs in 2012 meant more remittances: P165.63 billion versus P156.34 billion in 2011.
Professionals contributed the most, sending home a total of P24.78 billion, a fourth more than the year before. Each remitted an average of P109,000, rising from P99,000.
Ranking behind them in terms of remittances were laborers and unskilled workers who came up with P19.63 million, 11% less compared to the previous year. Remittances averaged P35,000 per worker, dropping from P37,000 each in 2011.
Remittances are supporting personal consumption, which accounts for around 70% of the country’s gross domestic product.
Bangko Sentral ng Pilipinas data showed that overseas Filipinos sent home a total of $20 billion in 2011, and $21 billion the following year. It expects a 5% rise in remittance inflows this year.
“Overseas Filipinos,” which encompass permanent migrants, temporary migrants (mostly OFWs) and irregular migrants totaled 10.5 million, about a tenth of the population, based on the Commission on Filipinos Overseas’ count as of 2011.
Fernando T. Aldaba, an economics professor at the Ateneo de Manila University, said the exodus of professionals is expected to continue “as long as there is a huge wage differential between destination countries’ rates and the Philippines’.”
Remittances might be higher but the country loses in the long run from the contributions they would have made owing to their higher education. The problem is exacerbated when they do not return to the Philippines.
“Politically, these permanent migrant workers should have been members of a growing middle class that will clamor and demand more governance reforms,” Mr. Aldaba added.
Jobs in tourism and business process outsourcing might hold them back but professionals are expected to continue to seek better opportunities abroad especially as the world economy improves, he pointed out.
The Survey on Overseas Filipinos, done annually, "aims to derive national estimates on the number of overseas Filipino workers, their socio-economic characteristics and the amount and mode of remittances, in cash and in kind, received by their families," the NSO said.
The survey covered those aged 15 years and older and who worked abroad from April 1 to Sept. 30, 2012.
"OFWs" pertained to those who had work contracts, working visas and work permits. Those without these documents but were employed were also covered by the survey.
Results of the NSO survey also showed that overseas contract workers -- those with contracts -- comprised 95% of the total number of OFWs.
Saudia Arabia was the preferred destination for around 21% of OFWs, followed by the United Arab Emirates, Singapore and Qatar.
Most OFWs sent cash to families in the Philippines through banks. They also brought some cash home, or sent remittances in kind. Other channels aside from banks were door-to-door services, agencies or local offices and friends and co-workers. -- Judy T. Gulane
source: Businessworld
