Impact of the Global Economic Crisis on Asian Migrants. Manolo Abella

Transcription

1 Impact of the Global Economic Crisis on Asian Migrants Manolo Abella

2 Too early to say magnitude of the impact on international labor migration

3 Too early to say magnitude of the impact on international labor migration Decline in global demand for labour Stock of migrants declining? What adjustments are taking place in labour markets of destination states?

4 Determinants of impact on migration Industries where migrants are employed Skill/Occupations of migrants Immigration status regular vs irregular Employment - project-tied vs continuous Labour market institutions Quality of governance

5 In Asia, available data to date suggest Crisis hitting native workers in export manufactures Slowdown of new migration admissions Insignificant returns

6 Malaysia - Basic Information Population million Area 330,252 square metres Per Capita Income RM25,796 [USD7,738] GDP 2008: 4.6% 2009: 1% to 1% 6

7 GDP growth declining 8 7 Growth Rates (%) Q Q Q2 Q3 Q4 Q Q2 Q3 Q

8 External Trade declining RM million 700, , , , , , , , ,611 Total Exports Total Imports Balance of Trade 400, , , , , , , ,115 81,289 77,856 57,778 18,826 20, Jan - Feb 2008 Jan - Feb

9 Employment Trend Labour force grew by 4.1% in , but slowed down to 2.2% in 2006, 2% in 2007 and 1.6% in Labour Force ('000 persons) 12,200 12,000 Unemployment Employment Employment showed similar trend i.e. grew by 4.1% in , but slowed down to 2.4% in 2006, 2.1% in 2007 and 1.1% in ,800 11,600 11, Unemployment from was low at 3.2% of labour force; but the rate increased to 3.7% in 2008 and is expected to rise to 4.5% in Women participation in labour force - 46% 11,200 11,000 10,800 10,600 11,159 11,398 11,525 11, Year f 9

10 Employment of Foreign Workers by Sector Sector No. of Foreign Workers % 1 Total Employment 2003 July 31, July 31, e Manufacturing 355, , ,337,000 Service (excluding domestic maid) 81, , Domestic maid 237, , ,911,400 Construction 269, , ,000 Plantation* - 349, Agriculture 147, , ,389,000 TOTAL 1,092,400 2,110, ,398,000 1 as percentage of total foreign workers * Not segregated in 2003 e Estimates The Government intends to reduce the number of foreign workers to 1.95 million in 2010 and 1.61 million in

11 MALAYSIA Policy Responses Affecting Migrants - Policy to terminate foreign workers first - Freeze on Intake of Foreign Workers - Fast-track deportation of undocumented migrants - Regularizing undocumented workers - Longer-term Plan to Cutback on foreign labour dependence

12 Retrenchment Retrenchment by Gender Year Male Female ,085 6, ,541 7, ,002 9, ,207 8, to Majority of those retrenched were in manufacturing. Statistics do not support that women were the first to be retrenched. Employees were more likely to be laid-off or have their pay cut. 12

13 Findings of FMM Survey 1Q09 Business Response to Manage Economic Crisis % Respondents Reduce operation cost 86.0 Increase productivity 61.6 Reduce capital investment 54.7 Lower production 48.8 Enter new markets 47.7 Introduce new products 45.3 Renegotiate supply contract 44.2 Reduce employment 33.6 Renegotiate sales contract 26.7 Restructure 24.4 Lowered/cut R&D budget 16.3 Hire new talents/skills 15.1 Diversified into other sectors 12.8 Left certain markets 9.3 Seek merger/acquisition

14 Findings of FMM Survey 1Q09 Types of Employment Initiatives % Respondents Cut overtime 66.3 Freeze recruitment 55.8 Freeze replacement 39.5 Extend shutdown especially during festivities 36.0 Cut contract workers 31.4 Workers take unpaid/annual leave 27.9 Cut shift work 25.6 Cut work week 22.1 Repatriate foreign workers 11.6 Retrench workers 10.5 Separation schemes 9.3 Temporary lay-off at half pay

15 Impact of the Crisis on Foreign Labour in MALAYSIA Number of Migrant Workers 2.2 million with work permits 1 million undocumented - Three-fold increase in migrant worker population from 799 thousand in 2000 to 2 million in 2007

16 Retrenchment [in the period to ] Type Local Foreign Male Female Male Female Total Retrenched 3,659 4,035 2,798 2,360 12,852 VSS 2,192 1, ,809 Total 5,851 5,974 3,356 2,480 17,661 Lay off 7,478 13,752 1,315 3,536 26,081 Pay cut 6,658 7,291 3,175 2,027 19,151 Total 14,136 21,043 4,490 5,563 45,232 Check Out Memo 1 95,542 Source: Labour Department 1 Immigration Department from to

17 Impact of Global Economic Crisis on Taiwan s Economy Small economy of 23 million people highly dependent on exports to drive the economy Exports account for 65 per cent of GDP Exports plunged by % in January and 22,27 % year on year in February Unemployment (624,000) nears 6% the highest ever recorded GDP forecast to contract from 3% to 6% in 2009

18 Response of Taiwan ICT Industries to Global Economic Crisis Cut-down production Flextime Forced leaves No work, no pay* No overtime Lay-off * Migrant workers are entitled to minimum wage of NT$17,280 regardless of hours worked

19 Filipino Workers in Taiwan As of Feb 09 MALE FEMALE Subtotal % of No. % No. % No. % Manufacturing 23,543 23,760 47, Food 1, , Textile/Garments 2, , , Fabricated Metal 3, , Electronics 7, , , Other Manufacturing 9, , ,059 Caretaker , , Domestic Helper , , All Others 1, , Source: CLA

20 Filipino Women Workers in Taiwan PROFILE OF THOSE EMPLOYED IN ELECTRONICS Age Range: Median Age: 26 At least Tertiary Education Not head of family Usually employed in backend of chip making (test, assembly and packaging), motherboard and PCB assembly and LCD panel assembly Hiring of Filipino women migrant workers specified by employer to broker

21 Lay-offs of Filipino workers in Taiwan since October 2008 CATEGORY MALE FEMALE TOTAL Factory Caretaker Nursing Aide Household Worker Fisherman Construction Worker TOTAL Source: DOLE

22 Deployments of Filipino workers to Taiwan since October 2008 CATEGORY MALE FEMALE TOTAL Factory Caretaker Nursing Aide Household Worker Fisherman Construction Worker Source: DOLE TOTAL

23 SRI LANKA 2008 OUTFLOWS BY MONTH January February March April May June July August September October November December Total

24 Origin country response : Philippines 1. Seek new markets 2. Livelihood Support Fund: P250 million of OWWA funds for livehood support; 3. POEA/OWWA provincial help desks to match the skills of retrenched or aspiring OFWs with available jobs in the country and abroad.

25 Government Response 4. Reintegration Services for OFWs through the National Reintegration Center for OFWs: Provides business & investment counseling, referral to banks & microfinance credit facilities, financial management & investment opportunities & livelihood support. Inter-agency OFW Assistance Center at the Airport Missions abroad to assist those disocated

26 Government Response 5. Legal Assistance and Referral to Agencies through POEA As of January 20, 2009 POEA provided: Legal assistance to displaced OFWs for refund of plane tickets, placement fees, Referrals to agencies for redeployment 6. Livelihood projects and interest free loans to OFWs and their families through OWWA Groceria Project