Top 5 – Cost Efficiency
Thailand ranks first in Cost Efficiency, followed by Chile, the Philippines, Morocco and Guatemala. However, these markets present other potential challenges with regulatory constraints and low availability of skilled and English-proficient workers, most notably in Guatemala and Morocco.
Traditionally the lowest cost markets also tend to be some of the least mature and, as a rule, have less consistent regulation and availability. The Philippines, however, is a recognized exception to this generalization. The Philippines recently passed legislation to ban subcontracting and enforce restrictions of contract terminations. While this may affect future cost efficiency, current national surveys indicate that nearly 70% of the workforce is contracted in some way − resulting in continued low wages creating challenges for emerging workers.
At the opposite end of the spectrum, Guatemala has minimal regulation as nearly 50% of its workforce is employed in agriculture where child labor remains prevalent. While cost may be low, regulatory factors and lack of skills can make the market less favored for engagement.
For more information, interactive charts and to download the full Total Workforce Index™ visit the Total Workforce Index™ microsite from the link below.