United States: Granular Approach to Workforce Strategy Required; Differing Regional Regulations

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While the United States continues to rank favorably and is one of the most mature markets, it is also made more complex than most countries due to various levels of municipal government and the laws which impact employers and workers at each level.

With the third largest total labor force globally, the United States outperforms other markets with regards to favored educational factors including literacy, English proficiency and tertiary-educated workers. Ranking first in the Americas for Availability and second in Regulation and Productivity, the United States has no annual maximum overtime, no severance pay or required notice period. This creates a favorable environment for contingent workforce strategies where these three metrics supersede the importance of cost efficiency.

Over the past year ManpowerGroup Solutions has tracked rising minimum wages, especially in California and New York. These states are on track to raise the minimum wage from the current rate to $15 per hour over the next several years impacting cost efficiency and the future of contingent labor programs within these states.

Some challenges affecting smaller regional areas of the United States may not be shown in the national metrics due to the small regional impact. These shifting metrics include standard laws regarding overtime and paid sick leave which may vary even by city in some areas such as the city of San Francisco. Despite a rising cost in labor in some markets, an increase in skills availability is also expected in certain areas throughout the United States due to the emerging trends allowing for increased wages, overtime and paid leave throughout the country. A contingent workforce strategy that accounts for future state and municipal regulations is critical in this market.