labor migration of sri lanka
DESCRIPTION
The aim of this report is to give a proper idea about the labor migration of Sri Lanka. Further it describes the nature of Labor Migration, the reasons which affect for Labor Migration, effects of Labor Migration for the development of local economy, social and cultural effects. Same as that it presents possible suggestions to overcome those issues.TRANSCRIPT
Labor Migration
Of Sri Lanka
1
Shakthi Fernando
BSc. Financial Management(Special)-Undergraduate
Sabaragamuwa University of Sri Lanka
2012 January
2
Abstract
The aim of this report is to give a proper idea about the labor migration of Sri Lanka.
Further it describes the nature of Labor Migration, the reasons which affect for Labor
Migration, effects of Labor Migration for the development of local economy, social and
cultural effects. Same as that it presents possible suggestions to overcome those issues.
3
Content
Introduction 04
Literature Review 04
Nature of Labor Migration 06
Influencing Labor Migration 11
Consequences of Labor Migration 13
Suggestions 15
References 17
4
Introduction
Millions of people are on the move from country to country. There might be several
reasons for migration (Study, Leisure, Job, etc…).But here, this report is based on the
Labor Migration, since it has been the most important and significant fact among all
others.
The bitter truth is some countries have failed to provide adequate jobs and economic
opportunities to the degree that public is expecting. Unemployment and
Underemployment of countries make their public to migrate to other countries. When
people do not get sufficient income as they expect, or if they feel like they can make
more and more, they tend to migrate. Basically there are favorable effects that benefits
both host and home in Economics point of view. But when it comes to social and cultural
basis, there are results that adversely affect due to Labor Migration.
In order to reduce the pressure on unemployment in Sri Lanka, overseas job opportunities
have been a vital source of employment. The reasons which tend Sri Lankans to migrate
can be individual, family and socio economic. The total number of Sri Lankans who are
employed in abroad at present is estimated to be 1.8 million. It is said that over 250 000
persons migrate annually from Sri Lanka.
Literature Review
Impacts of remittances on the household of the Emigrant Sri Lanka, Priyanka
Jayawardena (Institute of policy studies-Sri Lanka),By a survey.
Findings
Foreign employment continued to be a vital source of foreign
currency and job opportunities.
Middle-East dominates the foreign employment market.
5
Majority of migrant workers are housemaids and unskilled
workers.
A large proportion of households receive remittances.
Households receiving remittances have higher levels to total
expenditure, reflecting higher spending on food, non-food, health
and education.
Remittances have positive impact on other income sources from
properties, Financial and Physical Assets.
Although investments on health and education are higher for
migrant households, no significant improvement in school
enrolment and morbidity level.
National Labor Migration Policy for Sri Lanka, Padmini Rathnayake (Additional
Secretary-Ministry of Labor and Labor Relations-Sri Lanka),By surveys,
information bulletins, reports and statistics.
Findings
National Labor Migration Policy has been developed in three
sections.
Governance of the migration process
Institutional Framework
Regulatory
Legislative Framework
International Framework
6
Participation of Migrant workers in the
governance
Protection and empowerment of migrant workers
and their families.
Linking of migration and development process.
The difference between the current study and above two considered studies is as follows,
Current study is mainly about economic, social and cultural effects of Labor Migration.
Furthermore it includes suggestions to overcome from adverse effects to the country from
labor migration. And also it discusses about the nature of Labor Migration. It analyzes
how the Labor migration is differed from year to year by various factors.
But those two considered studies are regarding the formulation of National Labor
Migration Policy and spending of migrants’ income.
Nature of Labor Migration
Labor Migration can be simply defined as a movement from one country to another with
the purpose of seeking a better job, an employment opportunity or an economic
opportunity. Primarily, Sri Lankans migrate to Middle East countries. Migration to
Middle East countries holds a higher percentage from total migration. It can be shown by
following data.
7
Table No. 1: Departures for Foreign Employment by country 2006-2010
Country/Year 2006
%
2007
%
2008
%
2009
%
2010
%
Middle Eastern
Countries
Bahrain
Jordan
Kuwait
Lebonan
Oman
Quatar
Saudi Arabia
UAE
02.18
04.03
17.18
03.41
02.12
15.58
30.42
16.74
02.35
03.86
18.81
03.17
01.78
17.82
27.71
17.83
01.86
04.13
18.74
01.98
01.90
15.76
26.92
20.40
02.40
03.65
17.16
02.39
02.16
17.70
31.49
16.02
02.65
03.55
18.05
02.28
02.39
20.13
26.61
15.79
Other Countries
Hong Kong
Malaysia
Singapore
S. Korea
Cyprus
Maldives
Italy
USA
Other
00.13
01.77
00.47
01.81
00.16
01.72
00.00
00.00
02.28
00.14
00.48
00.43
01.23
01.38
01.79
00.01
00.00
01.21
00.12
00.52
00.43
02.79
01.13
01.69
00.01
00.00
01.53
00.14
00.42
00.42
01.62
01.19
01.58
00.01
00.00
02.07
00.11
01.38
00.39
01.97
01.04
01.57
00.01
00.00
02.08
Total 100 100 100 100 100
Source: Sri Lanka Bureau of Foreign Employment
8
Special implications
According to the above observation, it is concluded that most of labors have
migrated to Middle East countries. From these Middle East countries most
migrations for foreign employment have been reported for Saudi Arabia, UAE
and Quatar respectively.
Countries other than Middle East hold very less proportion from total labor
migration. It has been observed by above details. Even developed countries such
as USA and Italy own very less percentage from total migration.
A Special point that can be highlighted is the rapid increase of labor migration to
South Korea. As a result of some Agreement that both Host and Home countries
have gone through, lot of migrants have got opportunities for foreign employment
in South Korea.
Furthermore Labor Migration can be analyzed by gender and manpower category.
9
Table No. 2: Departures for Foreign Employment by gender and by manpower
Employment 2009
%
2010
%
2011
%
By Gender
Male
Female
By Manpower category
Professional
Middle Level
Clerical and Related
Skilled Labor
Semi-Skilled Labor
Unskilled Labor
Housemaid
48.3
51.7
01.1
02.6
02.7
24.8
02.4
20.2
46.0
51.2
48.8
01.1
02.6
02.0
26.7
01.8
22.6
42.1
51.7
48.3
01.8
02.2
02.8
25.7
01.6
24.1
41.0
Source: Sri Lanka Bureau of Foreign Employment
Special Implications
As the above observation, it is shown that male is holding a higher proportion in
last two years from labor migration. There might be several reasons for that. Since
male have the responsibility of their families, they are always seeking for higher
remunerations. When they can have much more in foreign countries, they tend to
migrate. On the other hand they are ready to do any type of job in another country
in spite of their social states, if they are paid well. As well as, if they feel like they
do not have many economic opportunities to get them developed, they might tend
to migrate.
10
Then it is shown that Labor Migration of professionals is increasing by year to
year. It is the fundamental of the brain drain of Sri Lanka, which can be affected
adversely in future. Straightforward reason for brain drain is the ability of getting
higher earnings in foreign countries.
Considerable proportion of Labor Migration is owned by skilled labors. It is a
huge issue that is going to be faced by Sri Lanka as a developing country in
future. When skilled labors have gone out from country, the benefit that can be
taken from them toward the economic development of Sri Lanka will be lost.
An adverse effect that has been discovered by those details is the increase in labor
migration of unskilled labor. Foreign Employment has become one of the major
sources of earning foreign exchanges. Foreign Countries are giving more
employment opportunities to Sri Lanka, because those countries have a favorable
impression about Sri Lankan employees. When more unskilled labors are sent by
Sri Lanka, the trust toward Sri Lankan employees will plummet. When those
unskilled labors cannot do their work as expected, it can be affected to all Sri
Lankans who are seeking for foreign jobs.
Highest percentage of total migrants is represented by housemaids. Not only that,
but also more than 90% is households from the total female migrants. Core reason
for that is insufficient household income. When family income is not adequate to
fulfill all the needs, female tend to migrate for foreign employment with the
intention of supporting their families.
11
Factors Influencing Labor Migration
Inadequate and Irregular Income
It has been discovered that the leading reason for labor migration is the
inadequate income. It is stated that lot of areas in Sri Lanka do not have
alternative income sources which help to improve the living standard of public.
House Construction
It has been indicated that there has been given a priority of house construction for
labor migration. When people wish to have their own houses, they tend to make
more money from foreign employments, since the prices of construction materials
are increasing. Then public cannot afford that much amount by doing a local job.
Definitely they have to migrate.
Educating children and siblings
Another motive for migration is people want to provide a good education to their
children and siblings. Then financial difficulties are arisen and solution is decided
as migrating for foreign employments.
Debts
Debts also have become a central cause for migration. When people cannot afford
their day to day expenses with the income and past savings, they have to go for
loans from private lenders. Focal reason for taking debts is the increasing cost of
living.
Alcoholism and Violence
Alcoholism and Violence mostly affect for the migration of female. When
husbands are addicted to alcohols and when they make violence in their families,
the lives of female become really tough. Then they tend to migrate for labor with
the intention to support their families as well as for getting rid of the violence.
12
Accumulate Dowry
Another reason that has been discovered is to collect dowries for their Daughters
marriages and for themselves. Higher proportion is female who migrate for above
reason.
Motivated by Role Models
Especially female are motivated by other female who have been abroad for
employment. When they boast about overseas, female feel like to migrate.
Sometimes true difficulties might have been hidden from them.
Female Headed Households
There are some families where the bread winner of the family is a female. They
might have divorced or husbands might have dead. As a result of that, female
become the sole bread winner of the family. When they face financial difficulties
inside the family, they choose to migrate.
13
Consequences of Labor Migration
Economic Consequences
Brain Drain
Brain Drain can be identified as a significant fact in developing
countries like Sri Lanka. Brain drain refers to the Migration of the
highly skilled professionals to the foreign countries in search of better
opportunities. In the modern world, large numbers of skilled
professionals are migrating to other countries. Motives for migration of
professionals are basically higher remunerations and better
opportunities. Leaving of skilled labor from Sri Lanka cannot be
afforded by a country like ours, because resources of Sri Lanka drain
into developed countries through migration. Then it becomes a barrier
for the implementations of economic development programs in Sri
Lanka. When Sri Lanka losses its skilled labors who can support for its
development, it becomes harder for achieving certain goals.
Foreign Exchange
Foreign Exchange has become the most beneficial consequence of labor
migration. Labor migration is a major source of earning foreign
exchange. Since Sri Lanka is depending on imports, labor migration
contributes a lot for the continuation of Sri Lankan economy as usual.
14
Reducing the Current Account deficit
Current Account of Sri Lanka is getting a deficit balance throughout
years, since it is a country which depends upon imports, even though
exports are less. When exports are compared with imports, they are
inadequate for importing everything. Then a huge deficit has been arisen
in the Capital Account. Sri Lanka is going for foreign loans for
compensation. But there is a benefit to the Capital Account, because it is
getting more foreign exchange through foreign employment. Then the
government can reduce the deficit of Capital Account as well as the sum
which is paying for foreign loans and interests.
Increasing the Living Standards
When ordinary people go for foreign employment opportunities and
earning more remuneration, Standard of Living goes up. Then they can
fulfill all their necessities and spend more for purchasing products. It
affects for the increase of Gross Domestic Product of the country.
Reducing the unemployment
Unemployment is one of the major economic issues of a country, since
there are no enough economic and job opportunities for everyone. Then
foreign job opportunities can reduce unemployment of a country even
from a small proportion. Unemployment problem of a country is partly
solved by foreign employment opportunities.
Social Consequences
Physical and sexual harassments
Recently more incidents have been reported regarding the physical and
sexual harassment. Mostly female who are employing in Middle East
countries have been harassed a lot.
15
Impact of other cultures
When foreign employees adapt to the culture where they work, it
drained to Sri Lanka. It can be unsuitable to Sri Lankan culture. Then
there might be occurred some distortions in the way they dress, with
their attitudes and habits.
Family Problems
There can be family problems when a member of family migrates to
some other country. Basically it affects to the children’s education.
When there is no one to lead them, there might be misleadings with their
lives. On the other hand, husbands can be addicted to alcohols when
wives have migrated.
Suggestions
Government has a responsibility to give a proper training to unskilled labors
before they depart for employments in abroad. It can be included the language,
customs, job training, rules and regulations of the foreign country. In that case,
foreign countries will develop a favorable impression towards the Sri Lankan
employees and they will offer more opportunities.
Sri Lanka should develop a program for reducing the brain drain. Government can
improve the states and social recognition towards every skilled professional. And
also they can be rewarded a higher remuneration package.
Sri Lankan embassies which have been established in foreign countries where Sri
Lankans work have to be more efficient. Then the harassments which are faced by
Sri Lankan employees can be reduced. There should be a proper procedure to
monitor Sri Lankan workers in those foreign countries.
16
Lots of employees are sent to Middle East countries for lower level jobs. They are
not heavily paid when it is compared with European countries. Government can
introduce programs to give a proper training and attract them to opportunities of
European countries. Then Sri Lanka can increase the amount of Foreign
Exchange, getting by foreign employments.
17
References
Agunias, D.R. and Aghazarm, C. (2012). Labor Migration from Colombo Process
Countries: Good Practices, Challenges and Ways Forward.
Cartias Sri Lanka. (n.d.). Migration of Sri Lankan Women - Analysis of Causes & Post-
Arrival Assistance.
Central Bank of Sri Lanka. (2010). Annual Report 2010.
Central Bank of Sri Lanka. (2011). Sri Lanka Socio-Economic Data 2011, Vol 34.
Daniel, D. (n.d.). Sri Lanka Labor Migration Policy needs to look inward domestic labor
force shrinks, migration increase-IPS study, Paper article of “The Island”.
Retrieved from http://www.ips.lk/events/workshops/45_09_developmentnexus/is_
land.pdf.
Human Rights Watch. (2007).Exported and Exposed Abuses against Sri Lankan Domestic
Workers in Saudi Arabia, Kuwait, Lebanon and The United Arab Emirates.
Jayawardhana, P. (2010). Impacts of Remittances on the Household of the Emigrant: Sri
Lanka. Institute of Policy Studies of Sri Lanka.
Jayawardhana, T. and Jayathilaka, R. (2008). International Migration Outlook-Sri
Lanka: 2008. Institute of Policy Studies of Sri Lanka.
Ratnayake, P. (Additional Secretary, Ministry of Labor and Labor Relations, Sri Lanka).
(2008). Development of National Labor Migration Policy in Sri Lanka.
Thrimavithana, R.S.K. (2007). Economic Implications of Skilled Labor migration The
Case of Sri Lankan Engineers. University of Moratuwa.