Foreign workers and the recession

I have blogged before that Calgary, Alberta is a favorite destination of Overseas Filipino Workers. In the past, there is a huge demand for foreign workers to perform jobs, most of which are low-skilled, the locals would not do. But that’s the past. The recession triggered mass layoffs worldwide and that left a lot of people out of work for months. In between jobs, jobless folks rely on unemployment benefits and their savings to help them get through the bills and living expenses. And, as a result of the unfavorable job market, the locals are now applying for jobs they wouldn’t even bother applying for had the economy is in good shape.

Now, what’s the impact of the economic downturn on the foreign workers?

- Locals start to pick on them claiming that foreign workers took away their jobs.
- There will be less jobs available to foreign workers i.e. foreign workers whose contracts are due for renewal this year are likely not to be renewed
- Stiffer competition among the foreign workers who are fortunate enough to retain their contracts
- More stress because the foreign workers aren’t sure when or if they’ll be sent home
- On the home front, there will less foreign workers deployed overseas

One employer in the food business did not opt to terminate the contracts of the Filipino foreign workers. The reason: work ethic. Not that the locals lack work ethic, it’s just that once the economy gets back on its feet, the first one to go are -- you guessed it right -- the locals, for the reason I mentioned earlier – they wouldn’t bother applying for jobs with low wages when there are better options out there. It’s good when the economy recovers because there will be more jobs available to everyone. Plus, there will be more options to earn more. But, what happens now with the small business owners when the employees leave en masse for higher wages? The business will suffer, of course.

This same employer used to have 20 branches in various locations within the state. But they closed half of the stores because they weren’t able to find people who are willing to do the work. You see it’s a low-skilled job. To keep their business afloat, they resorted to hiring foreign workers. And they hired a lot.

Filipinos have left in droves to seek a better paying job elsewhere and Canada is one of them. The wages are low but it’s a decent job and working conditions are acceptable. The measly pay they earn is saved and a portion of it is sent home to their families. Some fortunate ones were sponsored by their employers. Plenty of them were given the opportunity to become permanent residents of the country. But in view of the recession, some applications are suspended indefinitely. Plus, immigration has become more stringent in hiring foreign workers because the locals should be given priority. I could not blame them. For now, most Filipino workers deployed in Canada are waiting for the economy to improve. Their contracts depend on it. Once the government intervenes in the employment situation, they have no choice but to pack their bags and go home.