reaction paper: decrease in OFWs deployment

“Some of the markets like South Korea and the United Arab Emirates have recovered from the financial crisis and are expected to hire more Filipinos in the coming year,” she said.
About half a million job orders from various countries abroad are yet to be filled and are available for Filipino workers in the coming year, Banawis said.
However, local recruiters warned of a further drop in hiring of Filipino workers overseas with many countries still to comply with the mandatory certification from the Department of Foreign Affairs (DFA).
Recruitment

leader Lito Soriano said thousands of workers would not be able to return to their worksites abroad if they fail to comply with the certification requirement.

- Philippine star

 Due to global financial crisis, fewer Filipino workers were hired abroad. according to the data presented by the POEA deputy administrator Stella Banawis the number of Filipinos deployed abroad decreased by three percent compared to last year.
The decrease of employers hiring Filipino OFWs is that Indonesian and other foreign workers are more willing to accept lower salaries. Thus, the declination of Filipinos hired.
Also the implementation of the amended Migrant Workers Act late this year has also adversely affected the processing and hiring of Filipino workers abroad. the act would  allow the government to impose additional state exaction and fees that will bleed migrant workers dry of their earnings. it will intensify the recruitment while not safeguarding the well-being and protection of the OFWs.
These OFW problems will hamper the smooth deployments abroad. thus, results to a declination in the economy since Philippines' dependency on remittances from non-resident investors is large.
As we know, OFWs improves the exchange rates because it makes peso stronger. The inflow of remittances injected significant liquidity in the economy, the disappearance of exchange rate uncertainty and the increased liquidity have allowed interest rates to remain low while the stronger peso helped keep inflation low.