global workforce trends...asia pacific •vietnam’s national wage council decided upon a 7.3%...

Global Workforce Trends

Quarterly Market Report

March 2017


Global Contingent Workforce

ManpowerGroup Solutions | QMR 1st Quarter, 2017 | ManpowerGroup Proprietary & Confidential 2

• Global Workforce Trends

• Regional Highlights

• Detailed Country Level Analysis

– North, South, & Central America

– Europe, Middle East, & Africa

– Asia-Pacific

Table of Contents




This report is intended to provide an

overview of general business information

relative to global employment conditions

and considerations. It should not be

interpreted as legal advice. Please consult

with legal counsel to ensure that you are in

compliance with all applicable laws.




Global Workforce Trends




Q1’17 Global Trends Overview

Source: TAPFIN 2016 Contingent Workforce Index

North

America

South &

Central

America

Europe

Middle East

& Africa

Asia-Pacific

Overtime Work Visas Benefits Taxes

1. US - Federal O/T

increase on hold

2. US - 19 state

increases

1. US - Under Review

2. CA - Expanding

1. US - ACA ‘Reform’

2. US - State Paid-Leave

Increase

1. US – Under federal

review

2. US – State level

increases

1. Minimal change for

inbound

2. Potential decline of

outbound (to US)

1. Increasing burdens

& social insurance

1. Ongoing reform

1. Varies by country

w/ UK regulations

uncertain post-

Brexit

1. Common travel

areas w/ shifting

limits for Bulgaria &

Romania

1. AWR is EU specific,

w/ UK potentially

modifying

1. Taxation of x-EU

workers in/out of UK

may adjust

1. Less consistent w/

new legislation on

rise for 50%

premiums

1. Potential restriction

of outbound visas

results in increase

local recruitment

1. Healthcare reform &

social insurance

ongoing review

1. Taxation +

insurance

increasing costs of

employment

1. O/T restrictions

rising – Japan &

others w/new

guidelines

1. Quotas for % of

foreign workers in

Singapore &

elsewhere

1. Not consistent but

increasing risk of

noncompliance via

suppliers

1. Rising taxes, esp.

China undermine

cost savings of

wages

1. Chile/Brazil

increasing O/T law

2. Mexico/Argentina

complex schedules




H-1B Visa Changes Impact Workforce Scenarios




Work Visa Regulations Changing Globally

United States

Czech

Switzerland

United Kingdom

Italy

Australia

Japan

Canada

India

China

Denmark

Ireland

France

Malaysia

Germany




New Year. New Plan. New Questions.

How Many people

do we need?

How will we measure

them?

Who else hires them?

Where do we

need them?

How much Time do we need

them for?

Do we already

Employ them?

How do we Retain

them?

How do we Engage them?

What are they

Worth?

Have we already

Interviewed them?




Flexibility in labor law, but these

countries require dedicated programs

More innovative models not restricted

to contingent labor are necessary

Flexible legislation and abundant

workers enable MSP delivery in these

markets – usually leveraged on price

An established partner is required in

these markets to manage labor legislation and

achieve flexibility and efficiency

1 Relative rank calculated based on

active regulations related to contractual

terms, costs or labor and termination,

hiring and firing restrictions, and

enforced consequences

2 Relative rank determined by MSP

awareness, knowledge, and adoption


Legislative uncertainty related

to various tax, visa, & wage




ManpowerGroup Proprietary & Confidential

Global Parity Tracker:

Argentina

Belgium

Brazil

Bulgaria

China

Czech Rep.

Denmark

France

Greece

Honduras

Hungary

Ireland

Italy

Kazakhstan

Korea (South)

Luxembourg

Malaysia

Netherlands

Nicaragua

Norway

Peru

Poland

Portugal

Slovakia

Slovenia

South Africa

Spain

Sweden

Switzerland

Taiwan

Unite Kingdom

Uruguay

Venezuela

Colombia

Croatia

India

Lithuania

New Zealand

Romania

Turkey

Vietnam

Austria

Canada

Ecuador

Hong Kong

Japan

Mexico

Singapore

Australia

Bahrain

Belarus

Bolivia

Chile

Costa Rica

Dominican Rep.

El Salvador

Estonia

Finland

Germany

Guatemala

Israel

Latvia

Macau

Monaco

Morocco

Panama

Paraguay

Philippines

Puerto Rico

Russia

Serbia

Thailand

Tunisia

UAE

Ukraine

No Parity Required

Just Benefit Parity

Just Pay Parity

Full Pay & Benefit Parity

USA*

USA* Full benefit parity is not required but the Healthcare Reform Bill is moving the USA in this direction





Regional Highlights




Strategic Update on Americas

Latin America

• Venezuela’s President Nicolas Maduro increased the minimum wage another 50% in January, the fifth increase in the past year. Although it sounds like a big increase, inflation is expected to surge to 1,660% this year and 2,880% next year according to the International Monetary Fund. The wage increase follows a 40% increase less than three months ago. After the latest raise, the minimum wage stands at 40,638 bolivars ($12.14) a month.

• Argentina President Mauricio Macri wants to cut the country's high labor costs in a bid to increase foreign investment as labor costs must come down before they make investments. A 2016 International Monetary Fund report said Argentina's unit labor cost was 50% higher than the country's neighbors Chile and Brazil. Overall, salaries in Argentina are relatively high, as are tax and social security payments its employers are required to pay.

• In 2106 the International Trade Union Confederation gave

Uruguay a top rating indicating that workers’ rights are

infrequently violated. Uruguay is the only country in Latin

America to receive the organization’s highest rating possible. Uruguay’s labor standards legislation has been

further extended and improved in the past decade.

North America

• The United States Department of Labor's overtime salary

increase proposal which would have effectively more than

doubled the minimum annual salary threshold for the Fair

Labor Standard’s Act "white collar" executive,

administrative and professional exemptions was blocked by

a federal judge in Texas. For now the future of the proposal

is unknown.

• In Canada, Quebec's minimum wage will go up by 50 cents on May 1, 2017, bringing the total to $11.25 per hour. It will be the first of four annual wage increases, which will bring minimum wage up to $12.45 per hour by 2020.

• Mexico increased the daily minimum wage for general workers from 73.04 Mexican pesos to 80.04. The National Minimum Wage Committee may make another increase in 2017 to hit the target minimum wage of 89.35 pesos.




Strategic Update on EMEA

Eastern Europe

• With Brexit negotiations on the horizon, many of the 900,000 Polish citizens who live in the UK are planning to return to Poland, where employment opportunities are waiting for them. This influx of qualified labor could seriously boost the Polish economy.

• A new ManpowerGroup survey found more than half of

companies in Hungary are unable to fill vacancies due

to a shortage of workers as years of emigration to

Western Europe have created labor shortages.

• Although the gross minimum wage expressed in euro

has doubled in Bulgaria and Romania in the last nine

years, the two countries still have by far the lowest

minimum wages in the European Union on January 1,

2017.

Western Europe

• In January 2017, France enacted a new labor law that is meant to give employees a “right to disconnect” from email, smartphones, and other electronic devices once their work day has ended. However the law appears tough to enforce as there are no

fines for companies who ignore the new rules.

• Germany accepted more than 1 million refugees and migrants in 2015 and over 300,000 in 2016. With many of these refugees now finishing their initial requirements for asylum the country now faces the challenge of incorporating them into the labor market as getting refugees trained and hired is proving difficult.

• Brexit is causing non-UK nationals to consider leaving Great Britain, prompting fears of a labor shortage. Official government statistical data also suggests a slowing up in the number of EU arrivals into country. The number of non-UK nationals working in the U.K. rose by 221,000 to 2.26 million in the 12 months to September, but post-Brexit vote, the last quarter showed an increase of just 30,000.




Strategic Update on APAC

• Employers that violate China's labor protections have been targeted by a pair of measures that took effect January 1, 2017. One of the measures calls for the worst offenders to be “named and shamed,” while the other for compliance grades to be assigned to every company. China hopes to shed public light on domestic and foreign firms across all industries that skirt the country's labor law on wages and hours, paying into the social welfare system and other provisions.

• The debate in the US over bills meant to tighten H-1B visa rules could have a major impact for HR managers in India in

terms of labor availability and cost. Tightening the eligibility for H-1B visas will affect hiring managers in India that utilize

H-1B visa programs as an incentive for domestic employees and may cause a high number of Indian citizens to return to

India from the US. This should benefit hiring managers who have struggled with intense competition for talent in India’s

major cities.

• In Japan, full-time "non-regular" workers earn more than a third less than their permanent counterparts, often for doing

the same work, while the pay gap in hourly wages for part-timers is even bigger. Non-regular employees also receive far

fewer benefits. Prime Minister Shinzo Abe plans to fix those inequities by requiring companies to treat non-regular

workers as well as permanent employees. Draft guidelines for revising labor laws that released in December call for

"equal pay for equal work,” including comparable bonuses. They also say employers should also offer non-regular

workers benefits more frequently offered to permanent employees.

Asia Pacific

• Vietnam’s National Wage Council decided upon a 7.3% average

increase in monthly minimum wages for 2017, the lowest increase

since 1997. Workers must be compensated between minimums of

VND 2.58 million (US$113) to VND 3.75 million (US$165), a

compromise between the employers’ proposed increase of 5% and

that of workers which pushed for an 11% increase.




Detailed Country Analysis

North, South, & Central America




Argentina Agriculture 0.5 % Services 74.7% Industry 24.0%

Total Workforce 19,540,451

Full Time Employees 13,481,153

Contingent Workforce 4,398,360

Unemployed Workers 1,660,938

Law Mandates: Argentina

Non-Discrimination in hiring of women Yes

Equal Remuneration (Gender) Yes

Prohibition of prospective employers to ask about family

status No

Prohibition of dismissal of pregnant employees Yes

Parental entitlement to flexible working No

Full pension entitlement age (Female) 60 years

Full pension entitlement age (Male) 65 years

Workforce

Legal Requirements based on Gender Workforce Participation by Gender

World Economic Forum Gender Gap – Ranking out of 144 countries

A score of 1 is closer to Gender Parity relative to other countries.

http://wbl.worldbank.org/

http://www3.weforum.org/docs/GGGR16/WEF_Global_Gender_Gap_Report_2016.pdf

http://data.worldbank.org/





Bolivia Agriculture 32 % Services 48 % Industry 20 %




Unemployed Workers 138,938

Law Mandates: Bolivia

Non-Discrimination in hiring of women No



status No





Workforce











Brazil Agriculture 15 % Services 72 % Industry 13 %





Law Mandates: Brazil


Equal Remuneration (Gender) No


status No





Workforce











Canada Agriculture 2 % Services 78 % Industry 20 %





Law Mandates: Canada




status Yes





Workforce











Law Mandates: Chile




status No





Chile Agriculture 9 % Services 67 % Industry 24 %





Workforce











Colombia Agriculture 16 % Services 64 % Industry 20 %





Law Mandates: Colombia




status No





Workforce











Costa Rica Agriculture 13 % Services 68 % Industry 19 %



Contingent Workforce 513,727


Law Mandates: Costa Rica




status No





Workforce











Dominican Republic Agriculture 15 % Services 65 % Industry 20 %





Law Mandates: Dominican Republic




status No





Workforce











Ecuador Agriculture 25 % Services 54 % Industry 20 %





Law Mandates: Ecuador




status No





Workforce











El Salvador Agriculture 20 % Services 60 % Industry 20 %





Law Mandates: El Salvador




status No





Workforce











Guatemala Agriculture 33 % Services 50 % Industry 17 %





Law Mandates: Guatemala




status No





Workforce











Honduras Agriculture 36 % Services 45 % Industry 19 %





Law Mandates: Honduras




status No





Workforce











Mexico Agriculture 13 % Services 62 % Industry 24 %





Law Mandates: Mexico




status No





Workforce











Nicaragua Agriculture 32 % Services 51 % Industry 17 %





Law Mandates: Nicaragua




status No





Workforce











Panama Agriculture 17 % Services 65 % Industry 18 %





Law Mandates: Panama




status No





Workforce











Paraguay Agriculture 23 % Services 58 % Industry 19 %





Law Mandates: Paraguay




status No





Workforce











Peru Agriculture 26 % Services 57 % Industry 17 %





Law Mandates: Peru




status No





Workforce











Puerto Rico Agriculture 2 % Services 85 % Industry 14 %


Full Time Employees 780,392



Law Mandates: Puerto Rico




status No





N/A

Workforce


Labor Force Participation Rate by Sex and Income Levels

(% of population 15+)




http://datatopics.worldbank.org/gender/




United States Agriculture 2 % Services 81 % Industry 17 %





Law Mandates: United States




status No





Workforce











Uruguay Agriculture 9 % Services 69 % Industry 22 %





Law Mandates: Uruguay




status No





Workforce











Venezuela Agriculture 7 % Services 72 % Industry 21 %





Law Mandates: Venezuela




status No





Workforce












Europe, Middle East, & Africa




Austria Agriculture 4 % Services 70 % Industry 26 %





Law Mandates: Austria




status No


Parental entitlement to flexible working Yes



Workforce











Bahrain Agriculture 1 % Services 62 % Industry 35 %

Total Workforce 750,065




Law Mandates: Bahrain




status No





Workforce











Belarus Agriculture 10 % Services 57 % Industry 33 %





Law Mandates: Belarus




status No





Workforce











Belgium Agriculture 1 % Services 77 % Industry 22 %





Law Mandates: Belgium




status No





Workforce











Bulgaria Agriculture 7 % Services 63 % Industry 30 %





Law Mandates: Bulgaria




status Yes





Workforce











Croatia Agriculture 9 % Services 64 % Industry 27 %





Law Mandates: Croatia




status No





Workforce











Czech Republic Agriculture 3 % Services 59 % Industry 38 %





Law Mandates: Czech Republic




status Yes





Workforce











Denmark Agriculture 2 % Services 78 % Industry 19 %





Law Mandates: Denmark




status No





Workforce











Estonia Agriculture 4 % Services 68 % Industry 28 %





Law Mandates: Estonia




status Yes





Workforce











Finland Agriculture 4 % Services 74 % Industry 22 %





Law Mandates: Finland




status No





Workforce











France Agriculture 3 % Services 76 % Industry 21 %





Law Mandates: France




status No





Workforce











Germany Agriculture 1 % Services 70 % Industry 28 %





Law Mandates: Germany




status No





Workforce











Greece Agriculture 13 % Services 72 % Industry 15 %





Law Mandates: Greece




status No





Workforce











Hungary Agriculture 5 % Services 654% Industry 31 %





Law Mandates: Hungary




status No





Workforce











Ireland Agriculture 6 % Services 75 % Industry 18 %





Law Mandates: Ireland




status No





Workforce











Israel Agriculture 1 % Services 80 % Industry 18 %





Law Mandates: Israel




status No





Workforce











Italy Agriculture 4 % Services 70 % Industry 27 %





Law Mandates: Italy




status No





Workforce











Kazakhstan Agriculture 24 % Services 56 % Industry 20 %





Law Mandates: Kazakhstan




status No





Workforce











Latvia Agriculture 7 % Services 69 % Industry 24 %





Law Mandates: Latvia




status Yes





Workforce











Lithuania Agriculture 9 % Services 66 % Industry 25 %





Law Mandates: Lithuania




status No





Workforce











Luxembourg Agriculture 1 % Services 88 % Industry 11 %





Law Mandates: Luxembourg




status No





Workforce











Morocco Agriculture 39 % Services 39 % Industry 21 %





Law Mandates: Morocco




status No





Workforce











Netherlands Agriculture 2 % Services 81% Industry 17 %





Law Mandates: Netherlands




status No





Workforce











Norway Agriculture 2 % Services 77 % Industry 21 %





Law Mandates: Norway




status Yes





Workforce











Poland Agriculture 11 % Services 58 % Industry 31 %





Law Mandates: Poland




status No





Workforce











Portugal Agriculture 6 % Services 69 % Industry 25 %





Law Mandates: Portugal




status Yes





Workforce











Romania Agriculture 25 % Services 45 % Industry 30 %





Law Mandates: Romania




status No





Workforce











Russia Agriculture 7 % Services 66 % Industry 28 %





Law Mandates: Russia




status No





Workforce











Serbia Agriculture 21 % Services 53 % Industry 26 %





Law Mandates: Serbia




status No





Workforce











Slovakia Agriculture 4 % Services 61 % Industry 36 %





Law Mandates: Slovakia




status Yes





Workforce











Slovenia Agriculture 8 % Services 60 % Industry 32 %





Law Mandates: Slovenia




status No





Workforce











South Africa Agriculture 5 % Services 72 % Industry 24 %





Law Mandates: South Africa




status No



Full pension entitlement age (Female) – State Pension 60 years

Full pension entitlement age (Male) – State Pension 60 years

Workforce











Spain Agriculture 4 % Services 76 % Industry 20 %





Law Mandates: Spain




status No





Workforce











Sweden Agriculture 2 % Services 79 % Industry 19 %





Law Mandates: Sweden




status No





Workforce











Switzerland Agriculture 3 % Services 76 % Industry 21 %





Law Mandates: Switzerland




status No





Workforce











Tunisia Agriculture 15 % Services 51 % Industry 34 %





Law Mandates: Tunisia




status No





Workforce











Turkey Agriculture 20 % Services 52 % Industry 28 %





Law Mandates: Turkey




status No





Workforce











Ukraine Agriculture 15 % Services 59 % Industry 26 %





Law Mandates: Ukraine




status No





Workforce











United Arab Emirates Agriculture 4 % Services 73 % Industry 23 %





Law Mandates: United Arab Emirates




status No

Prohibition of dismissal of pregnant employees No




N/A

Workforce











United Kingdom Agriculture 1 % Services 80 % Industry 19 %





Law Mandates: United Kingdom




status No





Workforce












Asia-Pacific




Australia Agriculture 3 % Services 76 % Industry 21 %





Law Mandates: Australia




status Yes





Workforce











China Agriculture 34 % Services 30 % Industry 36 %





Law Mandates: China




status No





N/A

Workforce











Hong Kong Agriculture 0 % Services 88 % Industry 12 %





Law Mandates: Hong Kong




status No





Workforce











India Agriculture 50 % Services 28 % Industry 22 %





Law Mandates: India




status No





N/A

Workforce











Japan Agriculture 4 % Services 69 % Industry 26 %





Law Mandates: Japan




status No





Workforce











Macau Agriculture 0 % Services 84 % Industry 16 %





Law Mandates:




status No



Full pension entitlement age (Female) 65

Full pension entitlement age (Male) 65

N/A

Workforce


https://www.dsal.gov.mo/en/text/labor_problem_problem_set_staff.html

https://www.state.gov/j/drl/rls/hrrpt/2013/eap/220192.htm









Malaysia Agriculture 11 % Services 62 % Industry 27 %





Law Mandates: Malaysia




status No





Workforce











New Zealand Agriculture 6 % Services 74 % Industry 20 %





Law Mandates: New Zealand




status No





Workforce











Philippines Agriculture 30 % Services 54 % Industry 16 %





Law Mandates: Philippines




status No





Workforce











Singapore Agriculture 1 % Services 71 % Industry 28 %





Law Mandates: Singapore




status No





Workforce











South Korea Agriculture 6 % Services 70 % Industry 24 %





Law Mandates: South Korea




status No





Workforce











Taiwan Agriculture 5% Services 59% Industry 36%





Law Mandates: Taiwan




status No





N/A N/A

Workforce


Average Hourly Earnings of Employees by Sex (Non-Agricultural Sectors)







Thailand Agriculture 42 % Services 38 % Industry 20 %





Law Mandates: Thailand




status No





Workforce











Vietnam Agriculture 47 % Services 32 % Industry 21 %





Law Mandates: Vietnam




status No





Workforce








global workforce trends...asia pacific •vietnam’s national wage council decided upon a 7.3%...

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