Foreign domestic helpers (FDHs) have become an integral part of many households in countries around the world, especially in Asia and the Middle East. They perform various tasks such as cleaning, cooking, looking after children, and elderly care to support the daily lives of their employers. However, their importance goes beyond just household chores, as their salaries have a significant impact on the economy of their home countries. In this post, we’ll explore the economic impact of Foreign domestic helper salary (外傭工資).
FDHs are usually women who come from low-income and developing countries to work in other countries that have better economic opportunities. The most popular destinations for FDHs are Hong Kong, Singapore, Taiwan, Malaysia, and the Middle East. They send part of their salaries back to their home countries to support their families. According to the World Bank, foreign remittances by FDHs and other migrant workers are estimated to reach 550 billion USD in 2020, which is crucial for poverty reduction, education, and healthcare in their home countries.
In many cases, the FDHs who work abroad earn higher salaries than they would at home, even when taking into account the cost of living. These higher salaries also help boost the economies of their home countries. For example, in the Philippines, the earnings of FDHs accounted for 9% of the country’s economy in 2019, which was higher than the contribution of any other sector. This shows the substantial impact of foreign domestic helper salaries on the economy of a country.
Besides, foreign domestic helper salaries indirectly benefit the economies of their host countries as well. The households that hire FDHs can save money by outsourcing the household chores and allocate resources to other goods and services. This helps stimulate and grow the economy of the host country by creating additional demand in various sectors such as healthcare, tourism, and education. As a result, the employment opportunities and wages of local people in these sectors are also improved.
However, it’s worth emphasizing that there are also some negative impacts of the employment of FDHs on both the home and host countries’ economies. For example, some critics argue that the employment of FDHs creates a ‘brain drain,’ as many skilled workers leave their home countries to become domestic helpers, which can be viewed as a loss of human capital and skills. Additionally, there are concerns that the employment of foreign domestic helpers may create dependency on foreign labor and reduce incentives to invest in education and skill training for local people. Moreover, exploitation and abuse of FDHs can also have significant economic, social, and humanitarian costs.
Conclusion:
In conclusion, the impact of foreign domestic helper salaries on the economy is multifaceted. On the one hand, the remittances by FDHs boost the economies of their home countries, while their employment indirectly stimulates the economies of host countries. However, on the other hand, there are also negative impacts on both the home and host countries. Therefore, it’s essential to recognize the economic and social contributions of FDHs and to address the challenges and risks associated with their employment. By doing so, we can ensure that the employment of FDHs can bring positive economic outcomes, while also promoting dignity, respect, and human rights.
