APPLIED ECO: Labor Migration & the OFW Phenomenon

• Migration refers to the movement of people from one place to another
• INTERNAL MIGRATION and INTERNATIONAL MIGRATION are the 2 types of migration
• Internal Migration refers to the movement of people of people within one country (ex: RURAL TO URBAN MIGRATION)
• International Migration refers to the movement of people from one country to another
• Causes of Migration are:

  • POVERTY
  • UNEMPLOYMENT
  • VICTIMS OF NATURAL CALAMITIES
  • IMPROVE STANDARD OF LIVING
  • BETTER EDUCATION
  • BETTER ENVIRONMENT
  • ECONOMIC SECURITY
• Positive Effects of Migration

  • Increase labor supplu
  • Cheap labor
• Negative Effects of Migration:

  • OVERCROWDING
  • LACK OF HOUSING FACILITIES
  • TRAFFIC CONGESTION
  • HEAVY POLLUTION IN AIR, WATER, NOISE
  • UNEMPLOYMENT
  • OCCURENCE 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 Labor Migration:

  • The desire of job seekers to increase income and to improve the standard of living
  • The emergence of new industries
  • The relocation of production facilities of a given business to a new area
• Overseas Filipino Workers (OFWs) are Filipinos who are presently and temporarily working outside the country. They may be land-based and sea-based workers
• Example of OFWs

  • DOMESTIC HELPERS
  • TEACHERS
  • SEAMEN
  • NURSES
• Number of Filipino workers during the mont of April to September 2021 was estimated at 1.83 million
• REASONS BEHIND THE OFW PHENOMENON


  HIGH UNEMPLOYMENT RATE refers to newly graduates join the labor force that increases the competition in the labor market. Instead of waiting for them to be hired locally, Filipinos seek to work overseas
• REASONS BEHIND THE OFW PHENOMENON

  LOW SALARY OFFERED BY EMPLOYERS IN THE PHILIPPINES refers to those Filipinos who 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 higher salary offered overseas.
• REASONS BEHIND THE OFW PHENOMENON

  DISCRIMINATION IN JOB HIRING IN THE PHILIPPINES refers to local employers tend to hire candidates even if they're not the most qualified for the job. The qualified and overage applicants who were not able to find jobs decide to work abroad
• REASONS BEHIND THE OFW PHENOMENON

  HIGH WITHHOLDING TAX refers to 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