Economy in the Philippines: On The Rise, Or Getting Worse?

When masses of Filipino adults flock to the Middle East to find employment overseas, such a phenomenon begs the question: What is happening with the economy in the Philippines that is forcing these adults to seek work overseas, rather than at home? And what are OFWs (Overseas Filipino Workers) doing for the economy back home?

In 2012 (when Andrea was in Kuwait interviewing OFWs), economists were optimistic about the Philippines, saying the abundant, youthful labor force would make the nation one of the most prosperous in the world: http://www.nytimes.com/2012/08/28/business/global/philippine-economy-set-to-become-asias-newest-bright-spot.html?ref=philippines&_r=1&

But this past summer, reports on the Filipino economy were grim…

“An estimated seven million Filipinos, about 17 percent of the work force, have gone overseas in search of jobs, according to the Asian Development Bank. For those who stay home, options are few.

Despite the rapidly expanding economy, the country’s unemployment rate increased to 7.5 percent in April, from 6.9 percent at the same time a year earlier. About three million Filipinos who want to work are unemployed.”

Even though President Benigno S. Aquino III has improved the situation drastically with his aggressive response to corruption and active interest in securing foreign investment, but he has not done enough to alleviate internal poverty.

http://www.nytimes.com/2013/06/20/business/global/for-many-filipinos-jobs-and-the-good-life-are-still-scarce.html?ref=benignosaquinoiii

Class divisions certainly contributes significantly to the problem.  Although the Filipino job market is increasing and diversifying with the up-and-coming tele-service center industry, Filipinos tend to be stuck in occupations passed down in families from generation to generation.  For example, Filipino class boundaries make it difficult for the 45% of the population in agriculture to network with upper-class Filipino business owners.  Even though Filipino farmers and fishermen struggle to make ends meet, especially when earthquakes and storms restrict their access to their livelihood, they often have no other options to support themselves.

Also, it is important to note that Overseas Filipino Workers (OFWs) earn a great deal of respect from their families and countrymen.  Filipinos glorify OFW friends and family members by emphasizing the sacrifice they make for their families and the hardships some workers endure overseas.  OFW’s families also tend to rise in socio-economic status when an OFW sends a significant income back home to the Philippines; it is not uncommon to see a new McMansion in a Filipino neighborhood that someone will point to and say, “Oh, that’s an OFW’s home. The family bought that house with the money he/she sent home.”

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