There seems to be a Filipino immigrant community either already established or just getting started wherever you go in the world. Filipinos are among the hardest-working people in the world, having traits that attract people of different races. You may learn more about the economic impact of Filipino migrant laborers from this article.
The Philippines views its emigrant population as the country’s greatest source of foreign currency earnings. Approximately 10% of the population of the nation, or a sizeable component of the labor force in the Philippines, is employed abroad.
However, what impact do Filipino migrant workers make on the Philippine economy?
Please read: TIPS FOR OFW BEFORE HEADING TO MONEY CHANGER
OFW
Overseas Filipino Workers, also known as OFWs, are Filipinos who work abroad. A person of Filipino heritage who resides abroad is known as an overseas Filipino worker. Filipinos who are living abroad legally as well as those who are traveling there for work or school are referred to as OFWs.
There are around 11 million Filipinos living overseas, according to a March 2022 study from the International Labour Organization (ILO).
How do OFWs help the economy?
OFW immigration has been one of the domestic economy’s main drivers of growth for many years. In the Philippines, overseas Filipino workers (OFWs) are revered as modern-day heroes. Their employment in other nations has greatly decreased poverty and contributed significantly to the growth of our once-struggling banking sector.
OFW remittances have increased steadily over the past few years to reach more than USD 25 billion annually. As this money is generally used to purchase products and services by the families of overseas Filipino workers, it directly benefits businesses and raises income in related areas of the economy.
This is one way that migrant Filipino workers help the economy. Filipinos working abroad frequently send money home to their family. Similar to the exports we make to other nations to make money, these foreign remittances have given us a reliable supply of funds.
Updates for 2023 OFW Remittances
According to President Ferdinand Marcos Jr.’s main economic manager, the weak peso will help the economy by giving dollar-earning exporters and the families of overseas Filipino workers (OFWs) who send cash remittances more for their money.
You shouldn’t worry about the peso since the best method to assess the peso is to determine whether it is competitive. How would you quantify that? Real Effective Exchange Rate (REER) is the official phrase. What are the differences with other currencies? Our currency is competitive because we’re in the middle of the pack, according to Benjamin Diokno, the secretary of finance.
Last Wednesday, the peso reached its lowest closing rate since October 27, 2005, closing at 55.06:1.If you look at that indicator, the Japanese yen and Indian rupee have experienced the greatest loss, according to Diokno.
The head of finance claimed that a strong peso would only help the wealthy since they would require less local currency to exchange their US dollars. “When the peso is strong, who benefits? who enjoy international travel, right? The wealthy, who like foreign items, are the Ferragamo and Hermes set, Diokno said.
When the peso is weak, exporters and OFWs profit because they receive more money in pesos per dollar, according to Diokno.
Gil Beltran, the head economist for the DOF and a retired undersecretary, attributed the devaluation of the peso to a bigger trade deficit brought on by an increase in imports during an economic reopening and recovery. According to Beltran, the fact that import prices, particularly for food and energy, shot through the roof after Russia invaded Ukraine and constrained supplies worldwide, did not help.
Beltran claims that “allowing the exchange rate to maintain its competitive level will allow the country to recover promptly as it gradually eases the lockdowns set up to battle the pandemic.”
Conclusion
A country’s commitment to providing chances for its citizens to contribute meaningfully to society is often a sign of growth in that country. In a relatively underdeveloped nation like ours, where resources are limited and frequently mishandled, opportunities and well-paying career prospects are severely constrained.
Plumbers, electricians, maintenance workers, teachers, operators, accountants, general practitioners, and other professions among our fellow citizens are compelled to look for employment prospects abroad at the expense of their families who are split apart. Ironically, the work and sacrifice of overseas Filipino workers (OFWs) have considerably enhanced the lives of Filipino residents, contributing significantly to the stability and prosperity of our nation.
