Those massive remittances from overseas workers, which are keeping the peso strong and giving the administration economic growth figures to crow about, have a downside: the exodus of skilled professionals is leading to a brain drain that is costing companies at least P1 billion a year. This is according to the European Chamber of Commerce of the Philippines, which noted that about one million jobs for skilled professionals must be filled in the next three years. But since 2000, some 79,000 professionals have been leaving the country each year, the ECCP reported. The group estimates that it takes about P15,000 to train a replacement for a skilled worker who leaves a company.
Health care, information technology, finance and accounting are among the key sectors that are starting to suffer from staffing shortages, according to the ECCP. The expression of concern is not new. Other quarters have warned of a looming crisis in public health care if the exodus of health professionals does not stop or at least slow down. The most popular college courses give an indication of the industries that are hit hardest by the skills drain: IT and nursing schools have mushroomed nationwide to answer a booming demand. Even doctors are getting nursing degrees for easier employment overseas. Other industries such as aviation are also feeling the lack of engineers, mechanics and other workers with specialized skills.
For now foreign investors are providing assistance in developing the country’s human capital and addressing the job mismatch. The country faces a dilemma: if salary scales are raised, skilled workers could price themselves out of a highly competitive market, and investors could relocate to neighboring countries with lower labor costs. Investors, workers’ groups and the government will have to put their heads together to hammer out a compromise that will stop the brain drain.