Productivity is the relative comparison of the potential productivity of a workforce based on the length of a workday, the length of a workweek and the number of workweeks within a year. Standard working hours, access to overtime work, and infrastructural efficiencies all have a bearing on the relative productivity from one market to the next and should be of prime consideration when conducting a cost-benefit analysis of one market over another.
Workforce markets with longer workdays or more hours in workweeks offer higher opportunities for increased productivity without the added cost of overtime premiums. These markets are ranked not just for those workforce considerations but also due to more stable labor markets, and higher levels of infrastructural and technological efficiency. In some cases, this productivity is directly driven by labor-market growth.
While labor-market growth or evolution is not the primary factor in all cases, it is increasingly at the forefront in workforce evaluation across the Middle East and Latin America. Israel is a prime example with its workforce participation rate increasing by 4.5% since 2003. Labor force growth, that is, the growth of the population that is both employed and unemployed but able to work, is predominantly driven by women as well as by older workers following the increase of the retirement age in this market. In fact, Israel is the only Middle Eastern job market in which women account for more than 35% of the labor force and currently represent 47.3% of the total workforce, or people who are actively employed.
Likewise in Chile, economic growth is spurring hiring activity. Lowered taxes and programs geared towards the expansion of the skills base in the labor market, particularly in mining and construction, are creating a positive environment for future investment. The primary hiring strategy in this market is currently the use of foreign workers who now make up 15% of the workforce.
For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.