FINANCIAL GAIN AND EMOTIONAL PAIN

Why Filipino workers flock to China and other countries

Bobby M. Tuazon CenPEG

China is one among many countries where overseas Filipino workers (OFWs) are employed amid limited job opportunities and slow economic growth in the Philippines. Today, about 230,000 OFWs work in China with major concentrations in the special administrative region of Hong Kong as well as in Beijing, Shanghai, Guangzhou, and Xiamen.

Likewise, China is one of the top foreign investors in the Philippines, frequently ranking among the top three sources of foreign investment pledges in recent years. While ranking first in 2018 and second in 2019, it remains a top-tier partner with significant investments in manufacturing, infrastructure, and trade, totaling over US$21 billion in FDI between 2010 and 2023.

China’s top three companies in the Philippines are Huawei Technologies, BYD (Build Your Dreams) electric vehicles, and Xiaomi retail stores with a wide range of smart electronics.Chinese foreign direct investment (FDI) reached about US$21.9 billion between 2010 and 2023. Key areas of investment include renewable energy, infrastructure, manufacturing, and technology, with over 118 Chinese companies operating in the Philippines.

Other foreign investors are Japan, the United Kingdom, and Singapore.Foreign investments are largely driven by initiatives in manufacturing, renewable energy, and regional development, notably within Calabarzon and Central Luzon. Calabarzon is an administrative region in the Philippines, designated as Region IV-A, comprising the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon. It serves as a major industrial powerhouse, economic hub, and residential area south of Metro Manila, with Calamba City in Laguna serving as the regional center.While in China, many OFWs work in domestic services, childcare, and eldercare. In Macau most OFWs are in the hospitality and construction industries.

Aging population and a rising middle class in China have triggered a high demand for domestic workers and English teachers raising issues whether to legalize more foreign workers to fill these gaps.

OFWs consider English as their second language – and English is also taught in Chinese schools. Roughly one percent or less of the total population in China speaks English fluently, representing about 10 -15 million people. While 300 - 400 million people are learning or know basic English phrases - mostly in major cities like Beijing and Shanghai - daily usage is low, making functional, high-level English proficiency rare across the country.

Overall, there are more than 2.19 million OFWs globally, with a significant concentration in Asia. The Middle East attracts the largest concentration of OFWs with over one million destined to the UAE and Saudi Arabia, despite increasing risks from regional conflicts.

Other major employment hubs for OFWs include Qatar, Kuwait, Taiwan, and popular Western destinations like Canada, the USA and, increasingly, European countries such as Italy and Germany.

At least 1,180 of the Filipinos work in Iran, majority of them residing in Teheran as well as other cities. OFWs in war-torn Iran generally work in specialized technical fields, professional roles, and the service sector, often amid fluctuating security conditions. Many are long-term residents, including spouses of Iranian citizens.

To many families, however, the future is bleak as far as the Middle East is concerned. As the war escalates, there will likely be fewer Filipinos left working in the Middle East by end-2026. The scenario raises the question whether returning Filipinos can find work in their own country. And what future awaits their families?

Last March, an initial batch of nine Filipinos, including OFWs and their children, were repatriated from Iran following the rising tensions in the Middle East. Over 8,600 Filipinos have returned from the broader Middle East region as of early May 2026.

Last year, the 2.19 million OFWs working abroad represented 4.18 percent (roughly two million) of the country’s total labor force of 52.4 million. Twelve percent of households are dependent on OFWs for income.

In fact, the whole economy is kept afloat partly by OFW remittances which hit a record high of US$35.63 billion in 2025, accounting for roughly 7.3 percent of the Philippines' GDP. These funds, mostly sent from the US, Singapore, and Saudi Arabia, are crucial for supporting local consumption and foreign exchange reserves, with over 33 percent of OFWs remitting at least PhP100,000 (RMB11,000) every year.

Low-income Filipinos driven to work overseas grapple with dire consequences at home. Families with mothers working as OFWs experience profound sociological and psychological impact, often described as a "care drain". While remittances provide significant economic benefits, the absence of the mother - traditionally seen as the primary caregiver and emotional anchor in Filipino households - creates a dual, contradicting experience of financial gain and emotional pain.

The migration of mothers disrupts traditional family structures and roles, leading to several sociological shifts. Non-migrant fathers often become the principal caregivers, frequently struggling to balance these duties with employment, sometimes resulting in reduced nurturing or reliance on extended family.

Worse, long-term separation often causes emotional distance between mothers and children. Children left behind by mothers often report higher levels of loneliness, anxiety, sadness, and abandonment. Upon return, families struggle to reintegrate, with children sometimes feeling aloof or rebellious toward their mother.

Moreover, studies and legal experts have pointed to high rates of family strain and marital dissolution among OFW couples, with some local estimates suggesting as high as 75 percent of OFW couples in certain regions like northern Philippines experiencing separation or annulment.

Historically, the exodus of Filipino workers can be traced to the labor export policy of President Ferdinand Marcos, Sr. in 1974 which was designed as a temporary measure to combat high unemployment, economic crises, and foreign debt. The policy formalized the systematic deployment of Filipino workers to the Middle East and other regions to generate foreign currency remittances. Rather than being temporary, the Marcos edict has become permanent.

Recent data shows an estimated 2.19 million OFWs working globally. This represents a 1.5 percent increase from the 2.16 million estimated in 2023.

The phenomenal growth of OFWs is attributed to institutional weaknesses in the Philippines that contribute to unemployment and underemployment which are deeply rooted in governance, education, and labor market policies.

The structural roots of joblessness are associated with the inability of the state to generate enough formal, high-quality jobs for its growing labor force – forcing many workers into the informal sector characterized by low productivity, low wages, and a lack of social protection.

The Philippines has about 20.6 million Filipinos or 42 percent of employed persons in outright informal work. Including informal wage workers, the informal economy involves roughly 35 million people, or 72.3 percent of the workforce, characterized by self-employment, unpaid family work, and lack of social protection, with high concentrations in Southern and Central Luzon.

Moreover, the country’s educational system fails to keep pace with industry demands, resulting in a large number of graduates whose skills do not match available jobs. While there is a high demand for technical labor, the system continues to oversupply graduates in other fields, leading to structural unemployment.

The country is also beleaguered by weak infrastructure and high cost of doing business operations, limiting investments that would create more jobs.

Corruption is widely considered as a leading, structural barrier to foreign direct investments in the Philippines. The World Economic Forum as well as many countries have flagged "pervasive" and "long-standing" corruption - particularly in infrastructure projects and public procurement - as a key reason why foreign investors adopt a "wait-and-see" approach.

These and other factors combine to spawn a "jobless growth" phenomenon, where GDP increases do not translate into significant improvements in employment rates.

Unless the Philippines puts in guardrails that address its structural weaknesses, growth and a better quality of life for Filipinos will remain a pipedream. #

(A nely-retired professor from the University of the Philippines, Tuazon is the co-author of 12 books and the sole author of Spies, Clan Politics, and A New World Order [2024]. He serves as the Director for Policy Studies of the think tank, Center for People Empowerment in Governance or CenPEG. As an academic with distinctions, he has specialized on foreign policy and geopolitics as well as East Asia.)