THE overseas labour migration sector has almost always been mired in problems. The sector now appears not to be able to withstand the pressure of its own growth. Official documents show that the number of recruiting agencies has almost tripled, from 923 in 2015 to 2,677 now, the highest among the countries that send migrant workers overseas. The sector has, thereby, added to corruption, riding on the indolence or unwillingness of the government to ensure effective oversight. Migrant workers have, thus, continued to pay costs much higher than what the government sets and to be cheated. Whilst the Middle East has been the prime destination of migrant workers, this puts them at further risks in the event of geopolitical shocks, as is happening now centred on the US-Israel war on Iran. About six million workers living in the Middle East have faced uncertainty since February 28, when the US-Israel attacks broke out in Iran, creating concern about disruption in remittance inflow, a mainstay of the economy. More than 15 million workers are now employed overseas, mainly in low-skilled jobs in low-paid sectors, who send some $20 billion in remittances a year.
The recruiting agencies have also largely failed to discharge their core responsibilities of diversifying overseas labour markets and producing skilled human resources. The Overseas Employment and Migrants (Amendment) Act 2023 requires recruiting agencies to send at least 100 workers overseas a year and to arrange for at least 20 per cent of the jobs on their own, meant to explore new labour markets. Whilst an increased number of agencies has made regulation difficult, such a large number of agencies has created an unhealthy competition among the agencies as one or two countries, or even a single region, have been the only destinations in the absence of any efforts to freshly create labour markets. The government has, meanwhile, continued issuing licences for the agencies without ensuring effective oversight. Political consideration is also reported to be involved. The interim government, which ended its tenure on February 17, for example, licensed 282 recruiting agencies in two phases while it suspended 191 licences and cancelled 188 licences in its tenure. As some families own licences for multiple recruiting agencies, the suspension and cancellation of licences hardly make any effective change in the situation as many continue to run their trade under other licences. Such a situation has only added to the structural weaknesses of the overseas labour migration sector.
Experts say that the labour migration sector has become a cash cow rather than a system that would ensure fair labour migration. The government should, therefore, not only step up oversight of the sector but also issue licences after adequate scrutiny. The government should make labour migration fair and humane.
