OFWs first ones to go if US economy worsens - AIM professor

MANILA, Philippines - A professor at the Asian Institute of Management (AIM) on Monday warned that overseas Filipino workers (OFW) would be seriously affected by the global financial crisis should the US – the world’s largest economy – go into recession. Emmanuel Leyco, who had worked in a credit rating agency, said US recession would create a domino effect all over the globe and cause millions of OFWs to lose their jobs. “In a global recession, immigrants are the first to go," Leyco told GMANews.TV in an interview. Leyco said newly-deployed OFWs would be the hardest-hit by an economic meltdown because most businesses implement a “last in, first out" policy in their human resources management. He said foreign workers are also often seen as low-priority in employment retention. “When factories or offices are closing (not even) seniority (counts)," he said. However, Labor Secretary Marianito Roque said Leyco's assumptions were baseless. “Where did he get his assumption that millions would be laid-off? If that is so, it (also) means the Middle Eat will shut down its projects including oil production," Roque told GMANews.TV in a separate interview on Monday. But Leyco belied the government’s perception that unless the economic crunch reaches the Middle East, OFWs won’t feel the brunt of the financial meltdown. He said some Middle East countries had invested in stocks and bonds in the US that were hit by the economic crisis, thus making them vulnerable to the crunch. “In a recession there is no such thing as a recession-proof sector," said Leyco. To cushion the impact of a global recession, the DoLE recently released a contingency plan to help local and overseas Filipino workers who might lose their jobs due to the global financial crisis. The contingency plan for the overseas employment sector includes two sets of interventions such as assisting affected OFWs find employment in other overseas destinations or set up livelihood or business enterprises for those who no longer want to work abroad. A fund from the livelihood program will also be set aside for displaced OFWs, according to the DOLE. The DoLE is likewise speeding up negotiations for more employment opportunities for Filipino workers in Canada, Australia, New Zealand, Guam, France, Saudi Arabia, United Arab Emirates, Qatar, and Japan. According to Leyco, instead of looking for other job markets for OFWs, the Philippine government should focus on re-thinking its 2009 national budget and gear it toward social servicing, health care, and education. “They should stop worrying about banks closing and start thinking about the socio-economic repercussions," he said. Leyco said the government should also start bracing itself for a possible worst case scenario that would include soaring inflation rates, public deficit, a weakening peso, and high unemployment. He also dissuaded the government from heavily depending on OFW remittance to shield the economy from the effects of global recession. Leyco said the government should be bent on providing mechanisms to keep the economy afloat through investments. - Mark Joseph H. Ubalde, GMANews.TV