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Rankings by Category: Productivity – 2018Total Workforce Index™

Productivity Overview

Workforce markets with longer work days or more hours in workweeks offer increased opportunities for higher levels of productivity without the added cost of overtime premiums. However, these top ranked markets did not receive top ranking based on the number of available work hours at the regular wage alone. Other workforce considerations are included when we consider the most productive markets. These include: more stable labor markets, higher levels of infrastructural and technological efficiency and a multitude of other factors. In some cases, productivity is even directly driven by labor-market growth.

The United Arab Emirates, for example, has a largely migrant workforce. It’s become a hub for the Middle East, attracting skills from other markets such as India and as far as the United States. This market is demonstrating very large growth and is expected to expand its workforce by 30% over the course of the next decade.

Singapore experienced labor productivity growth which may have risen to its highest level in seven years. This growth has been seen mainly in externally-oriented sectors such as manufacturing, wholesale trade, finance and insurance.

Comparison of the Top Five Markets for Workforce Productivity

Comparison of 2017 vs 2018 for Workforce Productivity

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

Rankings by Category: Regulation – 2018 Total Workforce Index™

Regulatory Overview

While each of the category rankings looks at a single aspect of the labor force, the regulatory framework of a labor market is potentially the most influential overall as it impacts each of the other categories to some degree. The top markets for regulatory ease are certainly not the largest workforce economies, and the maturity of their regulations does not allow for any overlap among the most cost-efficient markets. However, there is something greater to consider regarding these workforces.

Australia, Denmark, Ireland, New Zealand and Singapore all rank among the top 10 for both workforce availability and regulation, with New Zealand and Singapore also ranking among the top 10 markets for productivity. Again, while not necessarily among the world’s largest workforce economies, each of these represents an above average opportunity for organizations looking to drive workforce strategy through labor arbitrage.

The United Kingdom is new to the top ten this year following an increase in this markets Regulation score. This increase can be attributed to improvements in several geopolitical factors that contribute to the Regulation score of each market. This coupled with reduced uncertainty in the United Kingdom overall is leading to increased investment in this market.

Comparison of the Top Five Markets for Workforce Regulation


Comparison of 2017 vs 2018 for Workforce Regulation

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

 

Rankings by Category: Cost Efficiency – 2018 Total Workforce Index™

Cost Efficiency Overview

Certain engagements do not require specialized skills or English proficiency. Where this is the case and the skills needed are broad enough, many employment organizations can focus primarily on the metrics related to the cost of skills. While the majority of these markets rank very favorably relative to cost, they do not fare as well when ranked for Availability, Productivity or Regulatory impact.

The only exception being the Philippines which ranks well consistently across the other categories. This is due to additional investments that the Philippines has made into its workforce allowing this market to emerge as a global leader. Cost efficiency may remain a primary influencer driving new investments in this market. However, the availability of skills and English proficiency has continued to improve.

Along the same narrative is Vietnam, which has made bold moves to improve English proficiency along with strengthening the availability of technology skills such as application development for mobile platforms. This expansion of skills is being driven primarily by growth in investment from outsourcing companies.

Comparison of the Top Five Markets for Workforce Cost Efficiency

Comparison of 2017 vs 2018 for Workforce Cost Efficiency

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

 

Rankings by Category: Availability – 2018 Total Workforce Index™

Availability Overview

There is a lot of consistency regarding the markets in the top ten for Availability. However, the inclusion of smaller markets such as Ireland and Norway demonstrate that inclusion in the top ten isn’t dependent on workforce size alone. Bahrain is an example of a smaller market that has experienced investment in the workforce as well as skills development. This coupled with favorable policies for migration into this market shift the foundation of the workforce skill base. That skills base drives the value of the workforce to employment organizations.

In recent years, Bahrain's labor force has made up of roughly 70% foreign workers. This market has made aggressive investments into foreign workforce development to augment local skill sets and helped to shift its skill base to make them more appealing to employers. Also, worth noting is that pervasive use of foreign workers drives language proficiencies, adding more value to its skill base and showing that this market is emerging as a regional hub for the middle east.

Sweden has a strong score in Availability and while it has seen a huge spike in demand in the past, there are challenges related to supply of talent in this highly skilled workforce. The quality of the skills is very high, however the competition for talent and strict regulations in this market make it one that would benefit a very specific set of requirements for talent.

Comparison of the Top Five Markets for Workforce Availability

Comparison of 2017 vs 2018 for Workforce Availability

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

2019 Q1 APAC Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the Asian Pacific or APAC contingent workforce as it evolves across the Asian Pacific region each quarter. Featured in this first quarter of 2019 are Global Trends, European Employment Outlook statistics and Legal and Regulatory updates in countries throughout Europe as well as regional and micro level labor statistics at a country level across a variety of metrics.

Download the complete 2019 Q1 APAC Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete 2019 Q1 APAC Quarterly Market Report.

2018 Total Workforce Index™ Top 25 Market Rankings

Top 25 Markets for Total Workforce Engagement

Most of the markets in the top 25 (excepting however, those in the top 5) are in Europe, which continues to have many of the world’s more mature workforces. Despite similar total scores, these markets have a diverse set of characteristics and workforce metrics.

Some boast mature workforces in addition to more flexible regulations, such as the United States, United Kingdom, Canada and Australia. While others offer flexible regulation yet have less mature workforces, including New Zealand, Denmark, the Philippines and Israel. Regardless, each of these markets have secured a top-25 ranking based on above-average performance in two or more categories.

TOP 25 MARKETS BY Total Workforce Index™ SCORE WITH CATEGORY SCORES

In ManpowerGroup's experience, most organizations initially approach a review of their global workforce opportunities from the perspective of cost or availability alone. What has become apparent through analysis of the year-over-year trends in the Total Workforce Index™ is that assessing both risk and productivity are equally important especially when we observe dramatic changes in the rankings of individual markets.

For example, Estonia performs very well in both cost efficiency and regulation while receiving less noteworthy scores in availability and productivity. In a hypothetical top 25 where a higher weighting was attributed to cost and regulatory factors, Estonia would have the potential to rank in the top ten (possibly even in the top five) based on organizational priorities. Workforce engagement priorities and strategies differ widely between organizations, and business priorities have a substantial impact on the development of workforce planning.

While the Total Workforce Index™ rankings are standardized for this report, fully customizable reporting based on the Total Workforce Index™ can be created in a consultative engagement to determine the markets that best meet organizational priorities.

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

 

2018 Total Workforce Index™ Top 10 Market Rankings

Top 10 Markets for Total Workforce Engagement

The markets that rank highest in the Total Workforce Index™ are those with the highest relative performance across all four categories. The ability to perform well across two or more of the four main categories, in addition to having a minimal regulatory impact and large workforce availability, make these five markets the most generally favorable for workforce engagement.

The top overall markets, based on the rankings of the Total Workforce Index™, are led by three Asian Pacific (APAC) markets: Hong Kong, New Zealand and Singapore. Rounding out the top five are the United States and United Kingdom. The top five markets changed only slightly year-over-year. However, the biggest change is between the top two global markets, with Hong Kong rising to secure the first position from New Zealand. Until 2018, New Zealand held the first ranked position globally since 2015. The move to second position in the global rankings is due to a significant drop in score in the Cost Efficiency category and a slight decrease in the Availability score year-over-year.

Top Ten Over the Years

Over the past five years, only one market has been featured in the top five year after year. New Zealand has consistently secured a place in the top five despite the addition of more than 50 unique factors to the index over time. Changes to the weightings of specific factors, indicating that they became a higher priority to employment organizations in a particular year, also have a strong impact on rankings, yet New Zealand managed to remain consistently in the top five each year.

Markets featured in the top five, four times over the past five years include Hong Kong, the United States, and Singapore. This trend is indicative of a mature, stable and valuable workforce market because, despite changes to the factors and weightings attributed to each market by the Total Workforce Index™, these markets continue to show that they are good investments in workforce engagement due to strong skills and positive hiring dynamics.

How do markets secure a position in the top ten?

Worth noting is the fact that the overall rankings are influenced equally by the scores for each market in all four categories. If a global market were to perform ‘very good’ to ‘excellent’ in two or more of the four categories, the result would be that this market rises to one of the top ranked positions.

Markets with more variation in scoring and performance across all four categories typically fall in the middle of the spread and will not score as well overall when categories are evenly weighted. That said, the weighting of the Total Workforce Index™ categories is fully customizable in a consultative setting. For example, if an organization chooses to weigh cost efficiency and regulation influencers lower than availability and productivity, the top 10 would instead reveal a unique top 10 better suited for that organization’s workforce strategy.

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

 

APAC Regional Overview – 2018 Total Workforce Index™

APAC Overview

The Asian Pacific region is consistently thought of as the primary destination for outsourcing and offshoring of business processes across many industries. In the past, India and China have received the majority of the attention for these practices due in part to their large workforces. However, based on overall workforce objectives the top five markets in the APAC region consistently out preform both India and China over the past five years. These markets present a combination of quality skills, capability, English proficiency and availability plus a more flexible regulatory environment.

Hong Kong returned to the top ranked position in both the global and regional rankings in 2018. In the past Hong Kong dropped out of the top spot due to the addition of factors to the Total Workforce Index™ related to the overall operating costs. Factors such as the cost of doing business and the operational costs in Hong Kong can be higher than many other markets in this region.

However, a steady increase in female workforce participation and continuing efforts to close the gender gap contributed to Hong Kong’s rise to the top spot. While the work week in Hong Kong has shortened and is no longer an average of 50 hours, it is still higher than most in the region with a higher number of work hours in the work week. Higher unemployment in some parts of the labor force represent an opportunity for investment to the right employers.

Top 5 Markets in the APAC Region

Regional Insights

Average wage, though a great tool comparison, is predominantly driven by the ratio of highly skilled jobs to lower skilled jobs. Markets with a higher volume of highly skilled jobs will average higher wages than markets with a high volume of low skilled jobs. Therefore, not all markets with lowest wage are the lowest for rates for a given skill.

Manufacturing wages are a leading indicator of rising costs as they typically rise before the wages of professional skills. Manufacturing wages are particularly sensitive to inflation and statutory burdens. Therefore, though the cost of manufacturing skills may be much lower than more highly skilled jobs, they are generally the first to reflect the rising cost of wages in a particular market. Due to increased digitization and automation some markets are showing higher wage increases than others. In particular, those driven by other industry production such as automotive and pharmaceutical. With reference to the automotive industry in the APAC region, China, Japan and India display these higher manufacturing wages. With regard to the pharmaceuticals industry, South Korea, China and India are impacted by these higher manufacturing wages.

Employment tax is a basic statutory burden that employers need to add to wages when calculating the cost of skills in a workforce market. It is typically the first metric of consideration beyond the wages themselves. Wages largest component of total labor cost. However, taxes are the best indicator for total cost. They are also more representative of the labor cost per market than insurance as insurance appears more standardized, while taxes are unique to each market.

MARKET REGIONAL RANKING GLOBAL RANKING
Australia 5               12
China 13               61
Hong Kong 1                 1
India 11               33
Japan 9               24
Macau 8               23
Malaysia 7               19
New Zealand 2                 2
Philippines 4               10
Singapore 3                 3
South Korea 14               62
Taiwan 10               31
Thailand 6               13
Vietnam 12               43

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

EMEA Regional Overview – 2018 Total Workforce Index™

EMEA Overview

The use of cross border migration is growing across this region following a lull over the past few years amid uncertainty attributed to Britain's decision to leave the European Union. The United Kingdom and Ireland remain consistent in performance over the past five years. The stability of their labor markets, high English proficiency, flexible regulations and the availability of higher education make these workforces appealing to regional and global employers alike.

Israel and the United Arab Emirates are rising in favor, showing stronger year-over-year performances as their workforces become more capable and more highly skilled.

While Estonia has been inching up in the rankings from a performance standpoint. In just the past 12-18 months investments in workforce development in this market have improved. Increased legislative stability, improved education attainment and higher rankings for the engineering workforce in Estonia have contributed positively to this burgeoning market across many aspects of industry growth.

Top 5 Markets in the EMEA Region

Regional Insights

Average wage, though a great tool comparison, is predominantly driven by the ratio of highly skilled jobs to lower skilled jobs. Markets with a higher volume of highly skilled jobs will average higher wages than markets with a high volume of low skilled jobs. Therefore, not all markets with lowest wage are the lowest for rates for a given skill.

Manufacturing wages are a leading indicator of rising costs as they typically rise before the wages of professional skills. Manufacturing wages are particularly sensitive to inflation and statutory burdens. Therefore, though the cost of manufacturing skills may be much lower than more highly skilled jobs, they are generally the first to reflect the rising cost of wages in a particular market.

Due to increased digitization and automation some markets are showing higher wage increases than others. In particular, those driven by other industry production such as automotive and pharmaceutical. With reference to the automotive industry in the EMEA region, Germany, Spain, France, the United Kingdom, Turkey, Russia and Czechoslovakia display these higher manufacturing wages. With regard to the pharmaceuticals industry, Germany, Switzerland, Belgium, France, the United Kingdom, Italy, the Netherlands, Ireland and Denmark are impacted by these higher manufacturing wages.

Employment tax is a basic statutory burden that employers need to add to wages when calculating the cost of skills in a workforce market. It is typically the first metric of consideration beyond the wages themselves. Wages largest component of total labor cost. However, taxes are the best indicator for total cost. They are also more representative of the labor cost per market than insurance as insurance appears more standardized, while taxes are unique to each market.

 

 

MARKET REGIONAL RANKING GLOBAL RANKING
Austria 21               37
Bahrain 8               17
Belarus 20               36
Belgium 31               49
Bulgaria 23               39
Croatia 15               27
Czech Republic 12               22
Denmark 9               18
Estonia 3                 8
Finland 25               41
France 38               67
Germany 7               15
Greece 26               44
Hungary 28               46
Ireland 2                 7
Israel 5               11
Italy 37               64
Kazakhstan 30               48
Latvia 6               14
Lithuania 29               47
Luxembourg 34               59
Morocco 33               57
Netherlands 11               21
Norway 16               28
Poland 32               53
Portugal 14               26
Romania 22               38
Russia 40               71
Serbia 17               30
Slovakia 24               40
Slovenia 27               45
South Africa 19               35
Spain 18               32
Sweden 10               20
Switzerland 13               25
Tunisia 39               69
Turkey 35               60
Ukraine 36               63
United Arab Emirates 4                 9
United Kingdom 1                 5

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™

 

 

 

 

Americas Regional Overview – 2018 Total Workforce Index™

Americas Overview

Although many South and Central American markets pose challenges for global employers, such as limited skills availability, low productivity and more complex regulations, Chile has experience significant improvement due to a substantial labor reform in recent years.

In the wake of natural disasters like hurricanes many markets experience changes to the labor force, Puerto Rico is unfortunately no exception. A result of a fundamental shift in workforce dynamics, due to a multitude of both general and technical infrastructure in need of rebuilding, global employers are shifting resources into other markets. This rebalances the existing workforce skills, making skills available that are aligned with the workforce space.

Mexico remains an attractive global market for investment due to proximity to North American markets such as the United States which allows for logistical benefits as well as cost savings on skills. However, a higher than the regional average employment tax figure may be cause for closer evaluation of the market especially in certain sectors that could be subject to additional taxation or import tariffs.

Top 5 Markets in the Americas Region

Regional Insights

Average wage, though a great tool comparison, is predominantly driven by the ratio of highly skilled jobs to lower skilled jobs. Markets with a higher volume of highly skilled jobs will average higher wages than markets with a high volume of low skilled jobs. Therefore, not all markets with lowest wage are the lowest for rates for a given skill.

Manufacturing wages are a leading indicator of rising costs as they typically rise before the wages of professional skills. Manufacturing wages are particularly sensitive to inflation and statutory burdens. Therefore, though the cost of manufacturing skills may be much lower than more highly skilled jobs, they are generally the first to

reflect the rising cost of wages in a particular market.

Due to increased digitization and automation some markets are showing higher wage increases than others. In particular, those driven by other industry production such as automotive and pharmaceutical. With reference to the automotive industry in the Americas region, the United States, Mexico and Brazil display these higher manufacturing wages. With regard to the pharmaceuticals industry, the United States is impacted by these higher manufacturing wages driven in part by the higher concentration of pharmaceutical manufacturers in higher cost metropolitan areas. Puerto Rico has experienced rising wages in Manufacturing driven by the direct impact of increased pharmaceutical production following last year hurricanes.

Employment tax is a basic statutory burden that employers need to add to wages when calculating the cost of skills in a workforce market. It is typically the first metric of consideration beyond the wages themselves. Wages largest component of total labor cost. However, taxes are the best indicator for total cost. They are also more representative of the labor cost per market than insurance as insurance appears more standardized, while taxes are unique to each market.

 

MARKET REGIONAL RANKING GLOBAL RANKING
Argentina 17               70
Bolivia 20               74
Brazil 18               72
Canada 2                 6
Chile 3               16
Colombia 8               51
Costa Rica 10               54
Dominican Republic 13               58
Ecuador 12               56
El Salvador 11               55
Guatemala 14               65
Honduras 19               73
Mexico 4               29
Nicaragua 15               66
Panama 9               52
Paraguay 16               68
Peru 7               50
Puerto Rico 5               34
United States 1                 4
Uruguay 6               42
Venezuela 21               75

For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.

Total Workforce Index™