The crisis maybe a big hurdle in the rise of employment locally, but is a bigger headache when it comes to migrant workers, which according to the International Labour Organisation numbers over 100 million.

In an online interview with it’s Director of the International Migration Programme, Ibrahim Awad, the organisation probed the latters work entitled "The global economic crisis and migrant workers: Impact and response,” and found that the impact might be much worse than we could imagine.

“(the impact depends) on countries of destination, migrant workers are present in such sectors as construction, manufacturing, hotels and restaurants, health care, education, domestic service and agriculture,” Awad said.

Some of these sectors – construction, manufacturing and hotels and restaurants – have been seriously affected by the crisis with migrant workers experiencing the major shocks, he noted. In the United States, Ireland, and Spain, migrant workers in construction were particularly affected.

“In Malaysia, Japan, and the Republic of Korea, the impact is in manufacturing which has the largest job losses,” he said. “In contrast, other sectors (e.g., health care, domestic service, and education), in some countries, have seen employment growth”

On the impact on labour migration flows, Awad noted that contraction of the economy and rising unemployment may prompt destination countries to introduce more restrictive labour migration policies.

“Origin countries, which often heavily depend upon the remittances from migrant workers, respond to the impact of the crisis by exploring new labour markets and introducing reintegration and employment packages,” he said.

Awad also noted that voluntary return programmes implemented by destination countries failed to bring back many of the workers. “Migrant workers often choose to remain despite deteriorating labour market conditions in order to preserve social security benefits. The adverse economic and employment situation in the origin country also discourages them from returning home,” he added.

The crisis has also undoubtedly affected the remittances from developing countries to the home country of the migrant workers. In many countries, remittances represent a high proportion of GDP. Through their direct and multiplier effects, they sustain demand and thus stimulate economic activity.

“The rates of growth of remittances has declined, and in some areas so has absolute volume,” Awad said. “A number of countries in Latin America, sub-Saharan Africa and especially Central Asia have been seriously affected. Thus poverty reduction and the sustainability of economic activity and employment in some countries are at risk.

As it has been its policy, ILO has been protective of the migrant workers and will continue to do so in recognising their contribution. In fact, Awad asserted that migrant workers have participated in promoting economic growth and prosperity and the creation of wealth in countries of destination, while contributing to poverty reduction and development in their countries of origin.

“It is therefore important to adopt appropriate policy measures to maximize their contributions to both countries of origin and destination,” he said. “For instance, economic stimulus packages put in place by countries of destination should equally and without discrimination benefit regular migrant workers. This would ensure the most efficient operation of labour markets and the best utilization of available labour.”

(Source: Jobsdb Malaysia)