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Oil Crisis and it's impact to the workforce


This discussion is about "Oil Crisis and it's impact to the workforce" in the "Politics & Current Events" forums.
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  1. #1
    C.I.A. firestarter's Avatar
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    Default Oil Crisis and it's impact to the workforce


    This has been felt all though out..



    Ambot unsa nani oe.

    AFTER TWO YEARS working in Saudi Arabia, Arman Abelarde packed his bags in September and went home to the Philippines, joining an exodus of foreign workers who have been a major source of labor in the Arab Gulf for half a century.

    Mr. Abelarde made panel boards in Riyadh, but his company, like many in the kingdom, is firing staff as government contracts dry up, victims of the oil slump.

    “I never imagined this would happen -- that Saudi would just collapse,” said Mr. Abelarde, 47, taking a break from painting a two-storey house in Manila, one of many odd jobs he’s taken to feed his family of five since he returned.

    “There were no more projects. Companies were closing left and right.”

    For generations of Filipinos, Saudi Arabia was a land of golden opportunity, awash with oil revenue that funded massive subsidies and construction projects.

    As the world economy boomed and oil soared above $140 a barrel, so did Saudi largesse. The party ended as crude crashed to less than $30, forcing the government to embark on big spending cuts.

    The reaction in Saudi Arabia reflects a shift against imported labor that is rippling across the world, from anti-immigrant Brexit supporters in the United Kingdom to the build-a-wall rhetoric of Donald Trump in the United States and a clampdown on migrant labor in countries like Singapore, Thailand and South Korea.

    One of the hardest-hit places is the Philippines, adding another headache for new President Rodrigo R. Duterte.

    Saudi Arabia was the top destination for Filipino workers abroad, and hundreds of thousands more went to the United Arab Emirates (UAE), Qatar and other oil-dependent economies in the region. The money sent home by more than 10 million expat workers around the world accounts for 10% of the Philippine economy.

    “The Philippines became a little too dependent on jobs from the Middle East,” said Emilio S. Neri, Jr. an economist at Bank of the Philippine Islands.

    “Now that the region is suffering, it won’t be able to absorb as much labor as they used to and the outlook for remittances is deteriorating.”

    More than 8,000 Filipinos lost their jobs in Saudi Arabia this year, the foreign affairs department estimated, threatening a flow of funds that has been both a pillar of consumer spending for families of expat workers and a stable source of foreign exchange.

    Making things worse is the weakening of another pillar of overseas employment -- hiring for merchant and cruise ships. Demand for seafarers fell 44% in January to July from a year earlier, the central bank said.

    Philippine mariners account for about a quarter of the 1.5 million seafarers worldwide.

    The World Bank in a report this month forecast remittances to the Philippines will increase 2.2% to $29 billion this year -- the slowest pace in a decade.

    The funds have become erratic, jumping more than 16% in August year on year after falling 5.4% in July. The monthly data have declined in five of the past 13 months.

    “Remittances have become much more volatile,” said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong.

    “Low oil prices are putting a squeeze on remittances from the Middle East, which is a major source, while sluggish freight trade is weighing on sea-based remittances.”

    Mr. Duterte, who took office in June, is facing rising risks to the Philippine economy, among the fastest-growing in the world.

    Investor confidence is faltering with the American Chamber of Commerce last month warning that deaths related to the President’s war on drugs and his attacks on the US are harming the country’s image.

    Exports, the nation’s largest source of foreign exchange, have fallen for 17 straight months.

    The peso is trading near the lowest level in seven years, the worst-performing Asian currency after the yuan in 2016, while stocks have fallen 5.6% since Mr. Duterte took office.

    More than 1.4 million Filipinos left for work abroad in 2014, with almost a million of them going to the Middle East, according to the latest available state data. About 400,000 went to Saudi Arabia while the UAE got about 250,000.

    As oil prices plummeted, Saudi Arabia’s efforts to cut spending hit the construction industry. Companies such as Saudi Oger Ltd. and the Saudi BinLadin Group have delayed wages and cut tens of thousands of construction jobs, according to media reports.

    Slowing economies in the region have also hurt demand for the myriad of services that Filipinos provide, from home-help to retailing.

    The loss of jobs for foreign labor in the Middle East may be affected by more than a cyclical drop in oil prices, according to Dilip Ratha, lead economist for migration and remittances at the World Bank’s Development Prospects Group.

    “More worrisome are structural factors such as de-risking by commercial banks and the labor market ‘nationalization’ policies in Saudi Arabia that discourages demand for migrant workers,” he said in an e-mail.

    Saudi Arabia introduced a program called Nitaqat in 2011 to increase the number of nationals employed in the private sector, providing incentives to hire and train its citizens.

    More recently, as the government slowed the award of new construction contracts and delayed payments, thousands of foreign workers were stranded without pay.

    Mr. Abelarde’s company wasn’t spared. In his last two months, he went to work with nothing to do, watching as the company gradually fired staff. Eventually, the ax fell on him.

    His boss told him he had a choice: he could go home while they could still afford to pay his plane fare, or risk being stranded if the company shut.

    Mr. Abelarde took the offer, giving up earnings of as much as $700 a month -- three times the minimum wage for private sector workers in Metro Manila.

    Back home, he’s worked as a welder, house painter and Uber driver -- anything to earn a living.

    “I don’t want to be idle,” he said.

    “I’ll take whatever job there is.” -- Bloomberg

    BusinessWorld | Arabian nightmare to haunt Duterte

  2. #2
    C.I.A. THE KID's Avatar
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    no problem it will be replaced with water..........

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    C.I.A. <SMILE>'s Avatar
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    It's time to allure foreign investors wishfully this should be done decades ago to sustain the working class.
    It's a good indication that the present admin of Pres Rod should do something, we need to facilitate to reform policies or either furnish new policies to promote external investments. The world needs to eat and fuel is not the only prime industrial or domestic commodity.

  4. #4
    Elite Member BolABug's Avatar
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    Quote Originally Posted by <SMILE> View Post
    It's time to allure foreign investors wishfully this should be done decades ago to sustain the working class.
    It's a good indication that the present admin of Pres Rod should do something, we need to facilitate to reform policies or either furnish new policies to promote external investments. The world needs to eat and fuel is not the only prime industrial or domestic commodity.
    I think that's where I can sense that ending the long war on Mindanao be ended. sayang kaayo ang Mindanao nga nindot kaayo tamnan og mga agri but we can't take advantage because daghang rebelde, so yes peace talk is a MAJOR big step..
    salig lang ta gamay ni Pres. Duterte.
    <SMILE> likes this.

  5. #5
    C.I.A. <SMILE>'s Avatar
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    Quote Originally Posted by BolABug View Post
    I think that's where I can sense that ending the long war on Mindanao be ended. sayang kaayo ang Mindanao nga nindot kaayo tamnan og mga agri but we can't take advantage because daghang rebelde, so yes peace talk is a MAJOR big step..
    salig lang ta gamay ni Pres. Duterte.
    Yup, Potential kaayo ang Mindanao,
    one good example is the humble banana export.

    The Philippine banana industry is one of our best agricultural products. Most of the banana producers are found in Mindanao the southernmost island of our country. It started in Davao del Norte around the 60′s and has flourished to eleven provinces with about 50,000 hectares of farmland. It is estimated that 35 billion pesos is invested in this agricultural industry which includes the cost of infrastructure, planting and distribution.
    Philippine Banana Production And Exporting

  6. #6
    C.I.A. pepponeskie's Avatar
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    Quote Originally Posted by firestarter View Post
    This has been felt all though out..



    Ambot unsa nani oe.

    AFTER TWO YEARS working in Saudi Arabia, Arman Abelarde packed his bags in September and went home to the Philippines, joining an exodus of foreign workers who have been a major source of labor in the Arab Gulf for half a century.
    last year, ni ingun ang Aquino Admin nga wala daw ga crisis ang oil, wala ra daw crisis ang middle east ug ang mga OFW...but it turned out daghan na kaayong nawad an ug trabaho...everything is under control.

    Analysts say that oil is in a slow recovery now...the bottom has been reached last January this year.

  7. #7
    Elite Member RayGunz's Avatar
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    Quote Originally Posted by marius View Post
    first off, i would just like to say that - SALA NA SA MGA PINOY DIRI SA SAUDI NGANONG BATI ILANG LIFE SA PILIPINAS. you know why ?? coz these a-hole pinoys here don't know the word SAVE or INVEST. All they do here is take credits left and right, bragging about something they don't own. Take cars on monthly-installments even though they can't really afford them. PURO RA PANG HAMBOG MGA PINOY DIRI MGA WALAY BUDGET RABA ANG MGA PISTI.


    as for the oil crisis, oh well, we can all thank iran for this they're the sole reason why the oil prices went down coz they flooded the market with tons and tons of barrels. the law of supply and demand has been justified
    Nyahahahaha..... Sniper Headshot kaayo tirada nimo boss...

    Naa gyud na nga batasan boss, kanang mga klase sa tawo nga hilig kaayo sa tapok-tapok unya maayo ra ba unsay giestoryahan.... either babaye or pagarpar dayon unsa naa niya, unsa naa nimo... hisgot sweldo, basol basol dayon sa immediate superior kay way increase... all the same tune sang by a loser.

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    C.I.A. DEMONOCIETY's Avatar
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    Quote Originally Posted by marius View Post
    first off, i would just like to say that - SALA NA SA MGA PINOY DIRI SA SAUDI NGANONG BATI ILANG LIFE SA PILIPINAS. you know why ?? coz these a-hole pinoys here don't know the word SAVE or INVEST. All they do here is take credits left and right, bragging about something they don't own. Take cars on monthly-installments even though they can't really afford them. PURO RA PANG HAMBOG MGA PINOY DIRI MGA WALAY BUDGET RABA ANG MGA PISTI.


    as for the oil crisis, oh well, we can all thank iran for this they're the sole reason why the oil prices went down coz they flooded the market with tons and tons of barrels. the law of supply and demand has been justified

    most likely mao sab ni character trait sa mga ignorante kaayo makagunit ug dagkong kwarta ang ending mao na na resulta

  9. #9
    Elite Member obelisk's Avatar
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    @marius I think mindset dyod na sa most pinoys. Same dyod sa call center na bahalag walay loadx2, walay tarongx2 kaon, walay emergency savings, wala tanan, basta lng mka iPhone 6s or iPhone 7. Hehehe.

  10. #10
    C.I.A. pepponeskie's Avatar
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    Quote Originally Posted by marius View Post
    first off, i would just like to say that - SALA NA SA MGA PINOY DIRI SA SAUDI NGANONG BATI ILANG LIFE SA PILIPINAS. you know why ?? coz these a-hole pinoys here don't know the word SAVE or INVEST. All they do here is take credits left and right, bragging about something they don't own. Take cars on monthly-installments even though they can't really afford them. PURO RA PANG HAMBOG MGA PINOY DIRI MGA WALAY BUDGET RABA ANG MGA PISTI.


    as for the oil crisis, oh well, we can all thank iran for this they're the sole reason why the oil prices went down coz they flooded the market with tons and tons of barrels. the law of supply and demand has been justified
    Quote Originally Posted by marius View Post
    ayaw sad ninyo kalimti mga boss ang mga social climbers diri. especially ang mga nurses na musulod na lang ug prostitution para maka palit sa latest gadgets.


    truth be told, saudi won't be affected with the oil price slump if they didn't went to war in yemen. low oil prices plus the daily millions of riyals spent for the war has greatly crippled saudi. but for me, it's a good thing that this has happened to them coz for decades these saudis got arrogant and think of themselves as better than anyone else. but look at them now, trying to rebuild and reconstruct their economy


    and the biggest problem for them now is the expats ( competent and reliable workers ) have left the country and they are now left with their fellow saudi worker which is incompetent and unreliable and lazy BUT demands a big salary so the once thriving business ( whatever it is ) is now dying becoz of their very own


    mura ni ug washing machine karon ang saudi

    mao na ang mga kinaiya jud sa mga OFW, dili lang sa saudi kundi sa ubang nasod pod...thinking nga "may forever".

    - palit sakyanan sa atoa maski dili jud necessity
    - palit latest gadgets, branded nga sanina, etc. para ingnon dakug sweldo
    - travel2x dayun sa ubang nasod maski halos wala nay kan-on
    - maxed na ang credit card kay napuno sa utang
    - party2x kada weekend sa mga club

    murag sayun ra kaayo ang kinabuhi para nila...or trying hard lang para ma mura sad ug westerners and dating.

    hinuon, dili man na atoang kwarta ilang gi gasto, sila ra man pod mag antos sa katapusan...ok ra na basta di lang ta apilon ug hasol2x nila inig abot sa panahon.

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