Statistical Statistical Measurement of Measurement of O O VERSEAS VERSEAS F F ILIPINO ILIPINO W W ORKERS’ ORKERS’ Remittances Remittances : : Present Practices and Present Practices and Future Direction Future Direction A Presentation to the A Presentation to the International Technical Meeting on International Technical Meeting on Measuring Migrant Remittances Measuring Migrant Remittances 25 January 2005 25 January 2005 Bangko Sentral ng Pilipinas
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Statistical Measurement of O VERSEAS F ILIPINO W ORKERS Remittances: Present Practices and Future Direction A Presentation to the International Technical.
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Statistical Statistical Measurement ofMeasurement of
OOVERSEASVERSEAS
FFILIPINOILIPINO
WWORKERS’ORKERS’
RemittancesRemittances::Present Practices and Present Practices and
Future DirectionFuture Direction
A Presentation to the A Presentation to the International Technical Meeting on International Technical Meeting on
Stock of Stock of OFWs OFWs averaged 4.8 averaged 4.8 million over million over the last five the last five years. years.
4.8 4.8 4.7 4.8 4.9
0
2
4
6
1999 2000 2001 2002 2003
in millionin million
7
0
1
2
3
4
5
6
7
1999 2000 2001 2002 2003
total landbased seabased
About 95% of OFWs are land-based workers.
STOCKSTOCK of OFWsof OFWs
in millionin million
8
0
20
40
60
80
100
120
1999 2000 2001 2002 2003 2004 J-Jun
Professionals Service Production Others
Over the latest Over the latest five years OFWs five years OFWs deployed are deployed are higher-paid higher-paid service, service, professional and professional and production production workers.workers.
OFWOFW DEPLOYMENTDEPLOYMENT by Skillby Skill
in thousandin thousand
9
Asia and the Middle East account Asia and the Middle East account for the top destination of for the top destination of deployed land-based workers.deployed land-based workers.
0
200
400600
800
1000
12001400
1600
1800
1999 2000 2001 2002 2003
M. East Asia Americas Europe Others
Europe13%
Asia31%
Middle East32%
Americas21%
Others3%
in thousandin thousand
20032003
OFWOFW DEPLOYMENTDEPLOYMENT by Destinationby Destination
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Average Monthly Average Monthly SALARIES SALARIES of OFWs of OFWs (As of March 2003)(As of March 2003)
Caregivers and caretakersCaregivers and caretakers
Cooks and related workersCooks and related workers
Protective service workersProtective service workers
By SkillBy Skill
907907
1,0111,011
1,3861,386
Amount (in US$)Amount (in US$)
Domestic helpersDomestic helpers 486486
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Average Monthly Average Monthly SALARIESSALARIES of OFWsof OFWs(As of March 2003)(As of March 2003)
By SkillBy Skill Amount (in US$)Amount (in US$)
Production and Related workers/transport Production and Related workers/transport equipment equipment
Welders and flame-cuttersWelders and flame-cutters 1,1441,144
Production relatedProduction related 1,0951,095
Supervisor production and general foremanSupervisor production and general foreman 950950
Clerk and related workers, of w/c:Clerk and related workers, of w/c:
ClerksClerks 538538
Receptionist and travel agency clerksReceptionist and travel agency clerks 349349
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OFW OFW REMITTANCESREMITTANCES
ModeMode % to Total% to Total
CashCash 92.092.0
BanksBanks 69.069.0
Informal Channels Informal Channels 23.0 23.0
Non-Cash (In Kind)Non-Cash (In Kind) 8.08.0
Remittance ChannelsRemittance ChannelsBased on 1995-2002 Survey on Overseas FilipinosBased on 1995-2002 Survey on Overseas Filipinos
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Present Practices inPresent Practices in
BOP Compilation BOP Compilation
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PresentPresent PRACTICESPRACTICES
Characteristics of estimation procedure:Characteristics of estimation procedure: Treatment of all contract workers as residentsTreatment of all contract workers as residents
Income estimates based on amount of cash Income estimates based on amount of cash remittances and are, therefore, net of expenses remittances and are, therefore, net of expenses abroad; remittances in kind not coveredabroad; remittances in kind not covered
No estimate of travel expenditures of contract No estimate of travel expenditures of contract workers in the BOPworkers in the BOP
Includes only remittances coursed through the Includes only remittances coursed through the banking system; country attribution based on banking system; country attribution based on immediate source of fund transferimmediate source of fund transfer
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Future DirectionFuture Direction
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INITIATIVESINITIATIVES
Creation of interagency Task Force Creation of interagency Task Force Objectives : Address data gaps and unify statistics Objectives : Address data gaps and unify statistics
on migrant workers, including harmonization of on migrant workers, including harmonization of estimation methodologies with the SNAestimation methodologies with the SNA
Outputs : (1) Established benchmark estimates of Outputs : (1) Established benchmark estimates of the number of overseas Filipinos, including contract the number of overseas Filipinos, including contract workers; and (2) Initiated collaborative effort to workers; and (2) Initiated collaborative effort to gather average salary per worker by skill category gather average salary per worker by skill category and by country and by country
Compensation of employees (CE)Compensation of employees (CE) Seabased workersSeabased workers
CECESeabasedSeabased = Remittances = Remittances ÷ 0.80÷ 0.80 (Contract requires remittance to beneficiary of 80% of basic (Contract requires remittance to beneficiary of 80% of basic
salary.)salary.)
EntertainersEntertainers
CECEEntertainersEntertainers = [Stock of workers = [Stock of workerst=0t=0 x ave. salary per x ave. salary per
workerworkert=0t=0 ] + [no. of deployed ] + [no. of deployed t=1t=1 x ave. salary x ave. salary
per worker per worker t=1t=1 ] – [no. of workers with finished ] – [no. of workers with finished
contract x ave. salary per worker prevailing at contract x ave. salary per worker prevailing at
time of their employment] time of their employment]
Workers’ remittancesWorkers’ remittances Residual of total remittances in cash and in Residual of total remittances in cash and in
kindkind Treated as receipts Treated as receipts
under Current Transfersunder Current Transfers
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Statistical Statistical ISSUESISSUES Need to harmonize definition of residence with Need to harmonize definition of residence with
population statisticspopulation statistics
Present system of monitoring headcount of migrant Present system of monitoring headcount of migrant workers has limitations:workers has limitations:
o Difficulty of monitoring those with no valid work Difficulty of monitoring those with no valid work documents/those counted as tourists upon departuredocuments/those counted as tourists upon departure
o Upward bias in headcount due to: mobility of workers in Upward bias in headcount due to: mobility of workers in landlock countries; returning workers with unexpired work landlock countries; returning workers with unexpired work contract not covered in estimation; and those frequently on contract not covered in estimation; and those frequently on vacationvacation
Need to improve design of Survey of Filipinos OverseasNeed to improve design of Survey of Filipinos Overseas
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Analytical Analytical IMPLICATIONIMPLICATION
Negative implication on external Negative implication on external vulnerabilityvulnerability