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