MANILA, Philippines - From a few thousands to more than five million. This is the phenomenal growth of the number of Overseas Filipino Workers (OFW).

In 1975, when the overseas workers program began, some 35,000 workers were deployed. But as of December 2004, there were 3.6 million and 1.3 million ?irregular? overseas Filipinos, according to the Commission of Filipinos Overseas? (CFO) Stock Estimate of Overseas Filipinos.

The OFWs also called ?temporary? overseas workers in the commission?s count include persons whose stay overseas is employment related and who are expected to return at the end of their work contracts.

The ?irregular? overseas Filipinos are those who are not properly documented or without valid residence or work permits or who are overstaying in a foreign country.

The third category of overseas Filipinos in the study are the ?permanent? overseas Filipinos, including immigrants or legal permanent residents abroad whose stay do not depend on work contracts. They number 3.2 million in 2004, bringing the total of number overseas Filipinos to 8.1 million.

With the big increase of OFWs, what started as a stop gap measure to ease local unemployment and poverty some 30 years ago, has become a major government program and a big factor in the country?s economy.

Money sent by OFWs back to the Philippines amounted to $10.7 billion in 2005.

Remittances sent through informal channels, like a worker?s friends, acquaintances or other travellers, were estimated to reach $1.7 billion. This makes estimated total OFW remittances in 2005 to be about $12.3

billion.

It was the first time that OFW inflows breached the $10-billion mark, equivalent to about half of the Bangko Sentral?s international reserves. In 2004, OFW remittances sent through the banking system amounted to $8.6 billion, up from $7.6 billion in 2003 and $6.9 billion in 2002.

In 2006, OFWs sent back to their local beneficiaries $12.6 billion through the banking system alone. The central bank estimated that this amount is even understated by an average of 30 percent because of funds sent home through informal channels.

Last year, overseas Filipinos sent a total of $14.96 billion to the country, augmenting funds for consumption, savings and investment. These inflows were coursed through banks and other alternative channels.

For this year, the BSP has projected a 10-percent rise in OFW remittances to a record high of $16.4 billion, despite fears that the US-led global slowdown might temper these flows. Of the amount, about $15.7 billion was expected to be coursed through the formal banking system. PDI Research