Kuwait Faces A Shortage Of Expatriate Workers Due To A Dispute With The Philippines

A recent report by the Economist Intelligence Unit discusses the current crisis between Kuwaiti and Philippine authorities regarding Filipino domestic workers in Kuwait, noting that the Philippine authorities have stopped sending new domestic workers after the murder of a Filipino domestic worker by her employer in January.

According to Al-Rai daily, the unit expects a severe shortage of female workers in Kuwait with Ramadan approaching and a large gap in the labor market if the dispute is not resolved.

Considering that the Philippines is one of Kuwait's largest labor market partners, any further restrictions imposed by the Philippines would adversely affect the domestic workers sector in Kuwait, where Filipino women account for about 50 percent of domestic workers, as well as other sectors such as health care.

As part of its analysis, EIU pointed out the Philippines' ban on sending new domestic workers to Kuwait, which could extend to a complete ban. It was noted that this came before Ramadan, when domestic workers are usually in high demand. The Philippine authorities also expressed intentions to revise their work agreement with Kuwait, which ended a similar diplomatic dispute last year.

In addition to the hundreds of Filipino workers who have fled Kuwait since the killing of Jollibee Ranara, hundreds of others have sought refuge at the Philippine embassy. The sources added that other countries such as Indonesia, Nepal and Ethiopia have refrained from signing labor agreements with Kuwait due to weak labor protection laws, which raises fears of a shortage of domestic workers in the future.

About 41,200 domestic workers of different nationalities left Kuwait permanently in 2021, according to sources. In February, the Kuwaiti authorities allowed the recruitment of foreign workers under contracts that are expected to expire this month.

More than 300,000 expatriates left Kuwait after the Corona pandemic in early 2020, as the government sought to restrict the hiring of foreigners in favor of Kuwaiti workers.

Considering the government's efforts to reverse the ratio of expatriates to citizens, which stands at 70:30, the unit believes reforms to the labor market and workers' rights are unlikely.

Expatriate workers are likely to be opposed by the National Assembly, which raises the risk of the Philippine ban being expanded to include sending all workers and may encourage other countries to follow. In the forecast period 2023-2027, policies to restrict foreign labor will continue to cause a shortage of labor in many sectors, increasing inflationary pressures.

 

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