Philippines Releases Data on Recruitment Costs Paid by Migrant Workers Abroad

The findings revealed that the majority of Filipino workers overseas are based in Middle Eastern countries, Taiwan (China), and Hong Kong (China), comprising over 62% of the total.

The ILO Country Office for the Philippines (CO-Manila), in collaboration with the Philippine Statistics Authority (PSA), has released data from the 2019 pilot measurement of SDG indicator 10.7.1, which focuses on the recruitment costs paid by Filipino migrant workers to secure jobs abroad. This is the first instance of such data being produced by the country.

The study, titled "Measuring Sustainable Development Goal Indicator 10.7.1 on Recruitment Costs of Migrant Workers: Results of the 2019 Philippine Survey on Overseas Filipinos," utilized data from the October 2019 Philippine Labour Force Survey (LFS) modular Survey on Overseas Filipinos (SOF). Although the PSA has extensive experience measuring the number of Filipino workers abroad annually, this was the first pilot measurement of recruitment costs.

The findings revealed that the majority of Filipino workers overseas are based in Middle Eastern countries, Taiwan (China), and Hong Kong (China), comprising over 62% of the total. More than 80% of these workers are engaged in low- to medium-skill occupations, with domestic service being the most common economic activity, accounting for 37%.

Despite the substantial costs incurred to secure employment abroad, Filipino workers spent, on average, only about 1.2 months of their salary to repay or cover these recruitment costs. The study suggests several policy recommendations to help Filipino workers access better jobs overseas. These include addressing gender disparities in available jobs, targeting higher-skilled jobs that align with the educational qualifications of Filipino workers, and reducing the financial burden of recruitment costs, particularly for the most vulnerable migrant workers.

The study recommends that the Philippines continue monitoring SDG indicator 10.7.1, including detailed data on the structure of recruitment costs such as recruitment agency fees and travel expenses, to maintain the SOF as a reliable data source for this indicator.