Returning migrant workers pose problems – UN study

More migrant workers are returning to their own countries but the United Nations has expressed concern over the socio-economic impact of return migration, especially in countries where there is no plan for reintegration.

In its 2001 Economic and Social Survey of Asia and the Pacific (Escap), the UN said return migration was becoming significant in the region as migrant workers return to their countries after working for several years abroad.

In countries where there is steady economic growth, the survey said workers are returning to take advantage of the opportunities in their countries, especially if those places where they had been working start to experience an economic slowdown.

The emerging trend, however, has conflicting impact. The reintegration of the return migrants into the socio-economic structure of their countries, the study said, was a major challenge.

Although return migration would address the long-held problem of brain drain in the domestic labor force, not all returning migrant workers were being quickly absorbed by the labor market.

Morever, overseas workers are a major source of foreign exchange earnings in many countries. Often, the study said the official figures represent only half of actual remittances since many workers often chose to use informal channels.

"Remittances are a major source of income for families of the migrants," the UN study said. "Some are used mostly for consumption and for building or renovating homes."

As a result, the related industries benefit and the economy grows through the

multiplier effect. In the Philippines, this had been particularly evident since net factor income from abroad accounts for a significant portion of gross national product.

"In 1996 when unemployment in the Philippines was around eight percent, it would be around 12 percent if all immigrants returned home," the study said.

The returning migrants could enhance the stock of human capital through the skills and experience acquired abroad, as well as facilitate access to modern technology, the study said.

However, emigration could also deprive labor-exporting countries of skilled people they actually need. There were also social costs involved as a result of separation of families.

The study also noted cross-replacement in labor forces between Asian countries like Malaysia and Thailand which were both origins and destinations of migrant worker flows.

"Malaysia has become a larger importer of unskilled workers, mainly from Bangladesh, Indonesia and the Philippines, while its own workers go to higher-wage countries particularly Singapore," the study noted.

The impact on wages, according to the study, was greater inequality since the outflow of skilled workers tended to raise the wages of the remaining skilled workers while the steady inflow of unskilled migrant labor tended to keep wages low for that end of the labor force.