Despite decline in global oil prices, the Saudi labor market remains stable for Filipino workers. The reported retrenchments are not due to the oil price slump in recent months, according to assessment of Saudi-based labor attaches and diplomats of the situation in the Middle East kingdom that hosts some 800,000 OFWS.
The positive assessment should calm the fears of massive retrenchment in Saudi due to the plunge of oil prices. In fact, last week Labor Secretary Rosalinda Baldoz expressed concerns of a possible displacement some 1.5 million Filipinos classified as temporary workers in the Middle East as the global oil glut is expected to continue in the coming months with the recent lifting of the sanctions on oil-producer Iran.
A report on the OFW situation in Saudi said, the retrenchments, particularly to the employees of the Middle East construction giant Saudi Binladen Group (SBG), “are hardly traceable to declining oil prices.”