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Statistical Measurement of O VERSEAS F ILIPINO W ORKERS’ Remittances : Present Practices and Future Direction

Statistical Measurement of O VERSEAS F ILIPINO W ORKERS’ Remittances : Present Practices and Future Direction. A Presentation to the International Technical Meeting on Measuring Migrant Remittances 25 January 2005. Bangko Sentral ng Pilipinas. Benefits of

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Statistical Measurement of O VERSEAS F ILIPINO W ORKERS’ Remittances : Present Practices and Future Direction

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  1. Statistical Measurement ofOVERSEASFILIPINOWORKERS’Remittances:Present Practices and Future Direction A Presentation to the International Technical Meeting on Measuring Migrant Remittances 25 January 2005 Bangko Sentral ng Pilipinas

  2. Benefits of Overseas Filipino Workers (OFWs) Remittances

  3. OFWRemittances Growth Rate (%) US$ billion • OFW remittances have been a major source of foreign exchange January-November

  4. Value of OFWREMITTANCES

  5. Profile of Overseas Filipino Workers (OFWs)

  6. STOCKof OFWs in million • Stock of OFWs averaged 4.8 million over the last five years.

  7. STOCKof OFWs in million • About 95% of OFWs are land-based workers.

  8. OFWDEPLOYMENTby Skill in thousand • Over the latest five years OFWs deployed are higher-paid service, professional and production workers.

  9. OFWDEPLOYMENTby Destination • Asia and the Middle East account for the top destination of deployed land-based workers. in thousand 2003

  10. Average Monthly SALARIES of OFWs (As of March 2003) By Skill Amount (in US$) Professionals, of w/c: Nurses 4,642 Computer programmers 2,531 Medical technicians/X-ray tech 1,658 Engineers 1,624 Composers/musicians/singers 1,156 Choreographers 1,113 Service workers, of w/c: Protective service workers 1,386 Cooks and related workers 1,011 Caregivers and caretakers 907 Domestic helpers 486

  11. Average Monthly SALARIESof OFWs (As of March 2003)

  12. OFW REMITTANCES Remittance Channels Based on 1995-2002 Survey on Overseas Filipinos

  13. Present Practices in BOP Compilation

  14. PresentPRACTICES Treatment of all contract workers as residents Income estimates based on amount of cash remittances and are, therefore, net of expenses abroad; remittances in kind not covered No estimate of travel expenditures of contract workers in the BOP Includes only remittances coursed through the banking system; country attribution based on immediate source of fund transfer Characteristics of estimation procedure:

  15. Future Direction

  16. INITIATIVES Objectives : Address data gaps and unify statistics on migrant workers, including harmonization of estimation methodologies with the SNA Outputs : (1) Established benchmark estimates of the number of overseas Filipinos, including contract workers; and (2) Initiated collaborative effort to gather average salary per worker by skill category and by country Creation of interagency Task Force

  17. Estimation Methodologies:PROPOSED Seabased workers - residents Landbased workers Entertainers normally with a 6-month employment contract – residents All others generally having a 2-year employment contract – non-residents Concept of residence

  18. Estimation Methodologies:PROPOSED Based on benchmark numbers per category established by the Task Force Monthly updating based on a moving total: Stock t=1 = Stock t=0 + number of deployed t=1 – number of workers with finished contract Stock of OFWs

  19. Estimation Methodologies:PROPOSED Seabased workers CESeabased = Remittances ÷ 0.80 (Contract requires remittance to beneficiary of 80% of basic salary.) Entertainers CEEntertainers = [Stock of workerst=0 x ave. salary per workert=0 ] + [no. of deployed t=1 x ave. salary per worker t=1 ] – [no. of workers with finished contract x ave. salary per worker prevailing at time of their employment] Compensation of employees (CE)

  20. Estimation Methodologies:PROPOSED Residual of total remittances in cash and in kind Treated as receipts under Current Transfers Workers’ remittances

  21. Statistical ISSUES Need to harmonize definition of residence with population statistics Present system of monitoring headcount of migrant workers has limitations: Difficulty of monitoring those with no valid work documents/those counted as tourists upon departure Upward bias in headcount due to: mobility of workers in landlock countries; returning workers with unexpired work contract not covered in estimation; and those frequently on vacation Need to improve design of Survey of Filipinos Overseas

  22. Analytical IMPLICATION Debt servicing capability Need for market orientation on the changes in statistical measurement Negative implication on external vulnerability

  23. Web: www.bsp.gov.phE-mail: bspmail@bsp.gov.ph

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