Beyond Loyola

Up for grabs: Skilled labor in the Philippines

By and
Published May 5, 2014 at 9:37 pm

On weekdays, Deo Charis Mostrales (BS Chem ‘13) reports to Schmitt Hall for laboratory work in fulfillment of his master’s degree. After his studies, however, he will be entering an industry in which the job market has recently started welcoming foreigners.

When asked for his thoughts on the matter, he says, “Speaking from self-interest, of course, this whole setup is disagreeable, since getting a job would be a bit more difficult.”

The chemistry industry is not the only one opening its doors to foreign workers. The Department of Labor and Employment (DOLE) is also allowing the following to occupy vacancies in their respective fields: Architects, chemical engineers, environmental planners, fisheries technologists, geologists, guidance counselors, licensed librarians, medical technologists, sanitary engineers, computer numerical control machinists, assembly technicians, test technicians, pilots and aircraft mechanics.

According to a recent study by the Bureau of Labor and Employment Statistics, these 15 jobs are among the hardest to fill in the country. Thus, according to DOLE Secretary Rosalinda Baldoz in a public interview, the country needs to “liberalize the labor market and allow entry of foreign workers with the required skills so we can fill up those hard to fill occupations due to shortage.”

Baldoz said that the temporary measure will ensure that “we are making our industries competitive” by maintaining an adequate number of qualified workers.

Heavy criticism

DOLE’s move is highly contentious, given that the Philippines is one of the highest exporters of labor, with government policies supporting Filipinos seeking employment abroad.

Migrante International chairperson Garry Martinez described the action in a press release as “absurd, atrocious and awfully insulting to millions of our Filipino workers and professionals here and abroad.”

He highlighted that DOLE’s claim contradicts the steadily increasing unemployment rate in the Philippines. He further condemned the Aquino administration for making the problem seem less urgent by citing lower unemployment rates and failing to mention that most of the jobs created during the current administration are either contractual or short-term.

However, Dr. Leonardo Lanzona of the Department of Economics clarifies that the policy does not automatically signal an influx of foreigners. “I’m sure companies, if they can find people who are skillful enough in our country… [will] be more willing to hire them,” he says, pointing out that hiring foreigners would mean shouldering transportation and housing.

The flip side

“If we cannot compete with foreign workers, that means there is something wrong with our educational system,” says Lanzona, who supports the policy. “Maybe we are not up to par with these foreigners and… in this case, will not be willing to hire our [own] workers.”

Currently unemployed Ray Natividad (AB Psy ‘13) found DOLE’s observations to be true, citing applicants who would fail simple aptitude tests.  According to him, unemployment comes not from a “lack of available work, but because of a mismatch between the skills and knowledge possessed by job seekers and those required by the position.”

“I suppose DOLE is simply doing its job,” Mostrales concedes. “[But] why not simply endorse a balikbayan program? I know that the idea sounds impractical to the point of naïveté, but here’s [to] hoping.”

He adds, “Even then, I’m not sure if balikbayans can fill the deficit.”

“The entry of our workers to other countries seem to be enhancing the productivity of the workers there, and that’s the reason why they’re being welcomed there,” Lanzona notes, saying that Filipinos complement the work force in foreign countries. He adds that it could be the same here. “If we get people from outside to work here, that means that they’re productive, and their productivity, presumably, should benefit the economy.”

He also agrees with Baldoz, citing Korea as a case study. “[Korea] took on an export-oriented development process where they allowed foreign companies to enter their market,” he explains. “In order to compete with these foreign companies, local Korean companies had to market their goods not only in their own country but also [to] the rest of the world.”

The measure, he says, pushed local companies to become competent, fueling their economic rise. He notes that competition is healthy and begins at the level of workers. “If these jobs are not filled up, it means that the output of the firm will not increase,” he explains. “So we would need workers… to fill up these positions so that the firms would be able to survive and, in the process, [generate] more employment.”

The exodus abroad

Mostrales notes that the deficit in chemists can be attributed to talented workers moving abroad.  “There are simply not enough funds going [to research and development] in the Philippines for the chemists to stay,” he explains. “Say you need Sample A to be analyzed, but the machine that can perform an analysis is in Japan.”

It is a sad situation, considering “how much the country invests in science education,” Mostrales adds. For instance, public science high schools are common throughout the country. Scholars of the Department of Science and Technology are required to work in the Philippines for “the length of time [they] enjoyed the scholarship.”

These aspiring scientists, he says, will soon find that there was no stable job market for them.

According to Kathy Ursolino (AB IS ‘00), an Overseas Filipino Worker (OFW) in Singapore for three years, “the Philippines should first fix itself, make sure that there are adequate jobs and salaries for Filipinos.”

Fourteen years ago, Ursolino joined the labor force and today notes that “nothing has changed.” Underlying problems of overworked, underemployed and underpaid workers still persist. “I was one of those underpaid, overworked and got my college degree mismatch my employment,” she says. The condition pushed her to immediately grab the opportunity to work abroad when it arose.

The number of overseas Filipino workers currently stands at 2.2 million, according to a Philippine Statistics Authority survey. More than 12% of this number is comprised of Filipino professionals.

Drafting the labor force’s future

While DOLE’s intentions are aimed at addressing the current situation and maintaining the competitiveness of the country’s industries, there must be a push in the efforts to address the job struggle.

Lanzona suggests tapping into the manufacturing sector to address the low demand for low-skill workers. “These low-skill workers presumably must be absorbed by the manufacturing sector,” he says. Creating jobs in the industry will lower unemployment rates.

Lanzona also cites the importance of education. More stringent coordination with the Commission on Higher Education can ensure that the future participants of the labor market are equipped with the necessary skills.

The Philippines might continue to lose its talents and skilled workers to countries that provide better benefits, and the disparity between the demands of the labor market and Filipino workers will be more prevalent than ever.

Mostrales continues to report to the Schmitt Hall laboratory, but has expressed worry over the possibility that it will be harder to find a job after his studies. When asked if he is considering leaving, he says, “Given the state of being a chemist in the Philippines, going abroad is an option that always looms over everyone’s heads.”


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