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Summary of ADB Brief No. 223: COVID-19 and the Deployment of Labor Migrants from Asia

Overview

The COVID-19 pandemic caused significant disruption to labor migration in Asia, with deployment volumes dropping by up to 50% in 2020 due to border closures and health protocols. However, by 2021, deployment began recovering, and 2022 showed a positive outlook with deployment returning to or exceeding pre-pandemic levels in many countries. Remittance inflows remained resilient, with slight declines in 2020 and expected growth in 2022. The pandemic accelerated digitalization in migration services but increased costs and exposed vulnerabilities for migrant workers.

Deployment Trends

• In 2020, deployment from major South and Southeast Asian countries, such as Bangladesh, India, Pakistan, and the Philippines, plummeted by over 50% amid the crisis.
• Recovery was evident in 2021 and 2022, with resumed movement to Gulf and European destinations, but internal Asian migration remains stagnant.
• Deployment in high-demand sectors like healthcare, agriculture, and construction picked up, driven by economic recovery and labor shortages in host countries.

Remittance Inflows

• Remittances to developing Asian countries decreased slightly in 2020 (-1%) but are expected to grow in 2022, with flows surpassing pre-pandemic levels.
• Key ADB developing member countries saw consistent growth in 2022, though Sri Lanka and others faced challenges due to capital controls and informal channels.

Pandemic Impacts

• Migration costs surged due to COVID-19 tests, insurance, quarantine fees, and volatile airfares, primarily borne by migrants.
• Digitalization of pre-departure orientation, visa processing, and other migration services improved access but requires evaluation to ensure effectiveness and integration with face-to-face services.
• Vulnerabilities included job losses for returned migrants, digital divides in accessing services, and challenges in monitoring recruitment agencies and curbing irregular migration.

Conclusion and Recommendations

• Ensure additional pandemic-related costs are not disproportionately pushed onto migrants, including promoting employer-covered expenses.
• Thoroughly evaluate and enhance digital migration services to complement traditional methods.
• Strengthen bilateral and regional labor agreements to include provisions for pandemics and emergencies, improving coordination between origin and destination countries for safer deployment.