Recent trade and immigration policies by the United States could pose risk to the job security of Filipinos working overseas and those employed in the local electronics-semiconductor industries, the Makati Business Club (MBC) said on Thursday.
Aware of the current stream of discussions among business circles on the potential, wide-ranging effects of US President Donald Trump’s policies on the US trade partners, the MBC focused on the jobs’ aspect of the fallout from the controversial tariff policies on Thursday as the Philippines observes the May 1st Labor Day holiday.
The club, a group composed of the country’s top business leaders and entrepreneurs, urged the Philippine government to ensure the affected workers would not be left out in the cold.
The Makati Business Club would also like to flag the possible effects of the 17% tariff imposed by the government of the United States on the Philippines, on skilled Filipino workers employed in the export sectors, especially in electronics,” the MBC said in a statement issued on the day.
The electronics and semiconductor sectors acount for a big chunk of Philippine export revenues.
“Other recent policies of the United States government may also impact the jobs of Overseas Filipino Workers (OFWs) hence, the government must also look into ensuring that skills training and jobs may be provided for them during these uncertain times,” the MBC added.
OFWs support domestic spending through money transfers to their relatives in the Philippines.
Biggest source of remittances
The US is the biggest source of remittances by overseas Filipinos, amounting to $14 billion in 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Remittances from the US account for 40.6 percent of the total annual remittances received by relatives in the Philippines.
Overall money transfers from overseas totaled $34.49 billion last year.
“While the trend of unemployment has been going down, many Filipino workers still face challenges in a global economy that has become increasingly uncertain,” the MBC said.
AI also a threat
The group cited a report by the International Monetary Fund (IMF) in December 2024 that said about 14 percent of jobs in the Philippines are “low-complementarity jobs,” or jobs at risk of being replaced by artificial intelligence (AI).
The IMF also reported more than 50 percent are considered highly complementary, or involving certain tasks where AI can assist in but not entirely replace.
MBC also noted that a 2024 study by the Philippine Institute of Development Studies (PIDS) showed that about 29 percent of Filipino workers lack the necessary skills for in-demand jobs.
President Trump’s trade policy could slow the deployment of skilled workers in healthcare, as well as teachers, while displacing OFWs in “replaceable” jobs in the services and manufacturing sectors in favor of American-born workers, it said.
Stricter visa policy
John Paolo Rivera, PIDS senior research fellow, said stricter immigration and visa policies under Trump’s “America First” policy may make it harder for new Filipino workers to enter the US, especially those in non-specialized jobs, or those renewing temporary visas.
“There may be greater scrutiny on visa renewals for existing OFWs, which can create job insecurity and discourage long-term employment in the US,” Rivera stressed.
“Policies favoring US-born workers might lead to reduced hiring of foreign nationals, especially in industries like healthcare, hospitality, and services — sectors where many OFWs are employed,” he added.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., warned the situation related to US trade and immigration policies could indeed suppress remittance growth from the US, affecting household consumption in the Philippines, as well as the peso.
“Possible protectionist policies by US President Donald Trump that could tighten immigration rules in the US, in an effort to create and protect more jobs for US citizens, could potentially slow down OFW remittances from the US,” he said.
US growth slowdown
The US and other countries that host large numbers of OFWs also run the risk of an economic slowdown, or even a recession in the US, due to Trump’s reciprocal tariffs, Ricafort said.
He expects Trump’s threats of reciprocal tariffs and other “America-first” policies could also drag global trade and investments.
Such policies will certainly have an impact on employment, including some OFW jobs, and overall world economic growth, that could also slow down OFW remittances from other countries around the world, Ricafort added.
American think-tank Pew Research Center in an August 2024 report, citing US Census Bureau data, said there were 4.1 million Filipino-Americans living in America as of 2022.
Domestic front
On the domestic front, the Employers Confederation of the Philippines (ECOP) said the proposed 17 percent tariff on Philippine exports to the US may affect Filipino workers employed in the export sector, especially electronics.
In a separate interview, also on Thursday, ECOP president Sergio Ortiz-Luis Jr. said “if exports slow down, that would certainly have an effect on local jobs.”
“As of now, we’re still okay,” he said, referring to the export sector.
“But if we don’t get new investments, that would be a problem … in our efforts to create jobs,” Ortiz-Luis, who is also the president of the Philippine Exporters Confederation Inc., said.
Short of saying the situation is beyond the confederation’s capacity to remedy, he said: “We just have to wait and see.”
Skills training
ECOP said it will launch an employment facilitation program that includes training in soft skills and technical know-how.
“We have a training institution and we are continuously striving to enrich it with new and emerging topics,” the group said.
Construction, information technology-business process management, tourism and electronics will continue to be the key employment generators, ECOP said.
ECOP wants its member companies to continue investing in upskilling and retooling their workers, especially the youth and young professionals to meet present and future demand.
