Why do ofw work abroad

Overview

The phenomenon of Overseas Filipino Workers (OFWs) working abroad has deep historical roots dating back to the early 20th century, but it became institutionalized in the 1970s under President Ferdinand Marcos. Facing high unemployment and economic instability, the Philippine government implemented a labor export policy through Presidential Decree No. 442 in 1974, which established the Overseas Employment Development Board and the National Seamen Board. This policy aimed to address domestic job shortages while generating foreign currency through remittances. Initially focused on Middle Eastern construction projects during the 1970s oil boom, OFW deployment expanded globally over decades. By the 1990s, destinations diversified to include East Asia, Europe, and North America, with women increasingly entering the workforce as domestic helpers, nurses, and caregivers. The term "OFW" was officially adopted in the 1995 Migrant Workers and Overseas Filipinos Act to recognize their contributions and provide legal protections.

How It Works

The process of OFW employment abroad operates through a regulated system managed by the Philippine Overseas Employment Administration (POEA), established in 1982. Recruitment typically involves licensed agencies that connect Filipino workers with foreign employers, requiring valid employment contracts verified by the POEA to ensure fair wages and working conditions. OFWs undergo pre-departure orientation seminars covering rights, cultural adaptation, and financial literacy. They obtain overseas employment certificates and clearances from agencies like the Overseas Workers Welfare Administration. Deployment mechanisms vary: land-based workers (constituting 78.8% of OFWs) often secure jobs in healthcare, construction, or domestic work through agency placements, while sea-based workers (21.2%) are hired via manning agencies for maritime roles. Remittances are sent through banks, money transfer services, or informal channels, with the Bangko Sentral ng Pilipinas monitoring flows to support economic stability.

Why It Matters

The impact of OFWs is profound both economically and socially. Remittances, which reached $36.14 billion in 2022, stabilize the Philippine economy by supporting consumption, reducing poverty, and financing education and healthcare for millions of families. These funds account for about 8.9% of GDP, making the Philippines one of the top remittance-receiving countries globally. Socially, OFWs are hailed as "modern-day heroes" for their sacrifices, yet their absence often leads to family separation and psychological challenges. Their work addresses global labor shortages in sectors like healthcare and construction, while also influencing Philippine policies, such as the 2018 Overseas Filipino Bank Act to enhance financial inclusion. The OFW phenomenon underscores globalization's effects on labor mobility and national identity.