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How the Philippines Became the World's Go-To Source of Labor

How a 1970s economic crisis, the oil boom, and government policy turned Filipino workers into a global workforce from Hong Kong to the Middle East.

Introduction

Hey corporate professionals! 👋 Ever wondered why you encounter so many Filipino workers in various industries around the world? From domestic helpers in Hong Kong to nurses in California, the Filipino workforce is truly global. Let's delve into this fascinating phenomenon and see what it means for the global labor market.

The Historical Context: A Perfect Storm 🌪️📚

In the early 1970s, the Philippines faced a severe economic crisis, exacerbated by the global oil crisis. At the same time, the shipping industry was undergoing a transformation, opening up opportunities for cheap labor. This created a perfect storm that pushed Filipinos into the global labor market.

The Middle East Connection: Oil and Opportunity 🛢️🌐

The oil crisis of the 1970s led to a boom in the Middle East, creating a demand for labor to build extravagant projects. Filipino workers filled this gap, and today, a significant percentage of them work in countries like Saudi Arabia and the UAE.

The Government's Role: Labor as a Commodity 🏛️🛠️

The Philippine government has played a pivotal role in this labor migration. They've essentially become a broker of labor, negotiating with foreign countries and even marketing Filipino workers as loyal, hard-working, and docile.

The Remittance Economy: A Double-Edged Sword 💵🏦

Remittances sent home by overseas workers have become a critical part of the Philippine economy, accounting for about 10% of the country's GDP. While this influx of money has benefits, it also has downsides like currency devaluation and inflation.

The Social Impact: Stereotypes and Self-Perception 🤔🌐

Interestingly, many Filipino workers don't see themselves as being exploited. They often view overseas work as an opportunity and even compete with workers from other countries. This has led to a reinforcement of stereotypes, both by the workers themselves and by the countries that employ them.

The Education Paradox: Migrate to Educate to Migrate 🎓✈️

The remittance economy has led to a unique education cycle. Parents work abroad to fund their children's education, often in nursing, with the expectation that these children will also work abroad. This cycle, while providing a pathway to a better life, is not sustainable in the long run.

Originally published on LinkedIn .

Amr Elharony
Delivery Lead, Mentor, FinTech Author & Speaker — bridging banking and technology to deliver measurable digital transformation across MENA.

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