global contingent workforce - global workforce insights...workers has declined by 2.2 million...

Quarterly Market Report Global Contingent Workforce

2nd Quarter 2012

• Executive summary

• Overview of global trends

• Regional highlights

• Detailed country analysis

– The Americas

– Europe, Middle East, and Africa

– Asia Pacific

• Appendix

Table of Contents

1/15/2016 ManpowerGroup Proprietary & Confidential 2

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.


EXECUTIVE SUMMARY


Q2’12 Global Trends Overview1

Global The Americas Europe, Middle East, and

Africa Asia Pacific

Labor Regulations Increasing

Increased regulation and cost specific

to temporary labor in parts of Latin

America

Legislative updates that

simplifies contingent worker

adoption

Increased regulation specific to

temporary labor engagement

and requirements

Workforce Utilization Increasing Total number of engaged workers has

declined by 1.4 million

Total number of engaged

workers has declined by 700

thousand

Total number of engaged

workers has declined by 115

thousand

Vendor Capability Increasing Increasing in key markets like Mexico,

Brazil, Argentina

Increased experience &

understanding in Europe

Training and education

launching in a number of key

markets

Technology Capability Increasing Increased by regulations &

geography

Increased language &

geography

Economic Conditions Challenging Slow economic Recovery Ongoing Euro crisis Increasing challenges in

emerging markets

Environmental

Conditions Challenging Hurricanes & Tornadoes Earthquakes & Floods

MSP Adoption Increasing Increased in LATAM

Increased in much of Northern

Europe, and to a lesser degree,

parts of southern Europe

Slowly increasing across the

region

Workforce Planning

Impact Challenging

Workforce alignment efforts

continue to represent cost savings

in Latin America, but legislative

trends and complexity require more

strategic planning

Rigid regulations, economic

pressure, and widespread

labor shortages require a

broader regional approach to

workforce mix and hiring

Opportunity and ability across

APAC continues to increase,

despite necessary

modifications to local market

regulatory guidelines



*Size of labor force based on January, 2011 as reported by CIA Factbook

**Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and enforced consequences

Global Comparison of Regional Workforce Shift

Based on analysis of global unemployment rates, the total number of engaged

workers has declined by 2.2 million workers since December of 2011.

Americas 18%

Asia Pacific 63%

EMEA 19%

Overview of Total Labor Force in Q2 (by # of Workers)

Americas 64%

Asia Pacific 5%

EMEA 31%

Breakdown of Reduced Workers by Region (% of total decline)

Geographic Diversification of Global

MSP Spend1

While total spend under management within the Americas will grow (primarily in Latin America),

it will be at a slower rate than the Europe, Middle East, and Africa and Asia Pacific regions.


Recent growth has been substantial in Argentina, Belgium, Brazil, France, India, Malaysia,

Mexico, Netherlands, and South Africa with increased interest and focus on Middle East

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

1Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and

enforced consequences; 2Relative rank determined by MSP awareness, knowledge, and adoption


High-Level View of Legislative

Landscape for MSP


ManpowerGroup Proprietary & Confidential


Parity

Regulations

Continue to

Increase

Globally

REGIONAL HIGHLIGHTS





Workforce Overview: the Americas In the Americas, the total number of engaged workers has

declined by 1.4 million.

• The five countries with the largest increase in engaged workers were:

1. United States

2. Canada

3. Paraguay

4. Ecuador

5. Argentina

• The five countries with the largest decline in engaged workers were:

1. Brazil

2. Columbia

3. Peru

4. Dominican Republic

5. Mexico

United States 69%

Canada 13%

Paraguay 7%

Ecuador 7%

Argentina 4%

Distribution of ~460K Newly Engaged Workers

Mexico -2%

Dominican Republic

-4% Peru -6%

Colombia -6%

Brazil -82%

Distribution of ~1.8M Newly Unemployed Workers



Legislative Overview: the Americas In Central and South America, a number of new regulations have been established

that could increase compliance risk in the region.

Most notably in Mexico and in Venezuela:

Mexico

• Regulation: Labor Law Article No. 15

• Impact on Employer: if a supplier is not in compliance and hasn’t made statutory Social Security payments, financial penalties are incurred and the employer can be named an Obligor of these penalties

• Impact on MSP: The supplier management role also places MSP in category of Obligor for these penalties, thus the MSP should audit supplier compliance to mitigate risk of incurring these penalties

Venezuela

• Regulation: Organic Labor Laws

• Impact on Employer: Reduces length of work day, sets maximum work hours, mandates full parity, sets severance limits, and fines for unfair dismissal as well as substantial restriction of ‘outsourcing’ as traditionally defined.

• Impact on MSP: Should audit local workforce for correct worker classification, calculate cost of complying with laws based on parity, hours, and productivity for all affected workers, and evaluate onboarding and offboarding processes to ensure compliance and mitigate any risk of fines or severance related to new policies




Workforce Overview: EMEA In EMEA, the total number of engaged workers has

declined by 700 thousand workers.

• The five countries with the largest increase in engaged workers were:

1. Germany

2. Poland

3. Czech Republic

4. Serbia

5. Netherlands


1. Spain

2. South Africa

3. Italy

4. Morocco

5. Russia

Germany 41%

Poland 33%

Czech Republic 12%

Serbia 7%

Netherlands 7%

Distribution of ~1M Newly Engaged Workers

Russia -13%

Morocco -18%

Italy -19%

South Africa -20%

Spain -30%

Distribution of ~1.2M Newly Unemployed Workers



Legislative Overview: EMEA In EMEA, a number of new regulations have been established that are intended to

reduce the rigidity of contingent workforce legislation in the region.

Most notably in France and Germany:

France

•Regulation: Warsmann Law

• Impact on Employer: increases flexibility of working time, simplifies accrual of paid leave, simplifies payslip requirements, more clearly defines oversight of remote workforce models

• Impact on MSP: modification of VMS and processes related to time & attendance as well as accruals

Germany

•Regulation: Lease of Employees Act

• Impact on Employer: clearly defines employee leasing categories including ‘secondments’ and intra-group leasing. Other changes to Temporary Employment law increases employers’ rights to limit the duration of contracts.

• Impact on MSP: audit of worker classifications as well as modification of VMS and processes related to time & attendance as well as accruals




Workforce Overview: APAC In APAC, the total number of engaged workers has declined

by 115 thousand workers.

• The four countries with the largest increase in engaged workers were:

1. Thailand

2. Japan

3. Australia

4. Macau


1. Philippines

2. South Korea

3. Malaysia

4. Taiwan

5. New Zealand

Thailand 60%

Japan 25%

Australia 13%

Macau 2%

Distribution of ~264K Newly Engaged Workers

New Zealand -1%

Taiwan -3% Malaysia

-3%

South Korea -13%

Philippines -80%

Distribution of ~377K Newly Unemployed Workers



Legislative Overview: APAC In APAC, a number of new regulations have been established that are intended to

clarify worker classification and related legislation in the region.

Most notably in China and Japan:

China

• Regulation: PRC Labour Contract Law

• Impact on Employer: defines and enacts social insurance requirements including statutory severance compensation

• Impact on MSP: review workforce mix for projected cost estimates and modification of VMS and processes accordingly

Japan

• Regulation: Worker Dispatch Law

• Impact on Employer: clarifies definitions of outsourced workers, and the outsourcing agencies and requires that agencies disclose commission fees which could cause substantial shift to some rate cards

• Impact on MSP: review agencies to ensure compliance and update rate cards accordingly

THE AMERICAS Detailed Country Analysis


Argentina Agriculture 7% Industry 60% Services 33%

Sources: 1) http://www.tradingeconomics.com/; 2) ManpowerGroup Solutions, Internal Analysis of MSP Program Performance, Hiring Trends, and Local Employment Activity;

3) Compiled by ManpowerGroup from publically available data sources; 4) ManpowerGroup Global Client Solutions Annual Survey of Local Country Offerings

Total Workforce 19.5M

Full-Time Employees 15.4M

Contingent Workers 2.7M

Non-Skilled Contingent

Workers

1.9M

Skilled Contingent Workers 837K

Unemployed Workers 1.4M

Workforce1

Market2

– Shortage of skilled workers in IT, Chemistry,

Engineering, and Industrial roles.

– Unemployment has dropped considerably;

however the majority of unemployment is in

the non-skilled workforce.

– The hiring of skilled workers is highly

competitive, particularly in the IT, media,

and pharmaceutical industries.

Activity3

– Despite increases to minimum wage, local non-

skilled workers continue to protest pay and

working conditions – there have continued to

be strikes and unionized action across

Argentina:

– Predominantly limited to the agriculture,

industrial, and logistics industries.

– Scrutiny of employment activity is high for the

October election, and there may be moderate

changes made to reporting and oversight

processes, depending on those election

results.

Legislation4

– The average working week is 48 hours

– Parity exists along with requirements for

medical insurance, social security, tax, and

pension contributions

– Fixed-term contracts are allowed, but have to

be written and cannot exceed a period of 5

years

– Paper invoice is required and must be

generated in country or international tax

applies

– MSP cannot invoice on behalf of suppliers,

Bolivia Agriculture 40% Industry 17% Services 43%





Contingent Workers 945K


Workers

728K


Unemployed Workers 374K

Workforce1

Market2

– Economic (Hunger) and Political (Trade Union

Restrictions) conditions are slow to improve and

continue to impact workforce performance and

short-term investments into hiring of workers in

Bolivia.

Activity3

– Trade Unions can be dissolved by the

government, and the right to strike is only

valid if ¾ of the workforce support it – making

strikes less prevalent and disruptive in Bolivia

than in other parts of Latin America.

Legislation4

– Contingent work is legal in Bolivia.

– Public and private sectors can set rates, but

the government requires yearly mandatory

salary increases.

– Pay parity is not required. Benefit parity is not

required, but recommended.

– Background and drug checking is legal.

– Standard work hours are 8 hours per day.

There is a maximum of 40 hours per week

allowed for women, and 48 hours for men.

– VAT (Value Added Tax) is 13%.

Brazil Agriculture 20% Industry 14% Services 66%



Total Workforce 101M




Workers

12.1M

Skilled Contingent Workers 4.1M


Workforce1

Market2

– Shortage of skilled workers in IT, Engineering,

and Industrial roles continues to impact hiring

and competition for skilled labor.

– The economic strength of the country has led to

substantial business growth and opportunity.

Activity3

– Repeated press coverage and international

commentary on local labor market highlights

ongoing conflict over minimum wage, and

heavy reliance on outdated labor laws for

social benefits of severance and termination

payments:

– Recurring debates on more labor reform are

ongoing.

– Trade and Industrial union centers have been

most active in public protest and discord.

Legislation4

– The maximum work day is 8 hours and the

maximum hours worked in a week is 44.

– Temporary workers are entitled to pay and

benefit parity.

– Two year restrictions on contract lengths.

– Temporary workers are entitled to a severance

package upon termination.

– MSP cannot invoice on behalf of suppliers.

Canada Agriculture 2% Industry 22% Services 76%







Workers

2.6M



Workforce1

Market2

– Recent employment growth has been

predominantly in Ontario and Alberta.

– Healthcare and Manufacturing Industries

demonstrate the highest employment growth.

– There are growing concerns about the aging

domestic workforce and expected increase on

reliance of foreign workers.

Activity3

– Current discussion of revisions to

Employment Insurance Act that could impact

onboarding and offboarding processes for

both traditional and non-traditional workers

– .

Legislation4

– The average number of working hours in a

week is 37.5 - 40 .

– 90% of Canada's employees are covered by

provincial labor law - the other 10% fall under

federal labor law, the Canada Labor Code.

– Provincial labor regulations create numerous

challenges for foreign employers:

– Regulated tax and health benefit system

– Disparate wage standards, benefit

requirements, contract parameters, varying

termination options

Chile Agriculture 13% Industry 23% Services 64%







Workers

836K



Workforce1

Market2

– Labor shortages in the Mining, Construction,

and Agriculture Industries.

– Workforce strikes, particularly in Mining,

continue to threaten productivity and create

unrest in local hiring environment.

Activity3

– An increasing number of earthquakes appear

to have minimal effect on long-term productivity

of workforce in Chile.

– Increased foreign relations with other counties

looking to establish labor agreements.

Legislation4

– Contingent work is legal in Chile.

– All entities within the country are free to set

their own pay rates. Pay and benefit parity is

not required.

– Background and drug checking are legal.


– There is a maximum assignment length of 6

months depending on the purpose.

Replacement for vacation, maternity or sick

leave can be for the term of the event

Colombia Agriculture 18% Industry 13% Services 68%



Total Workforce 19M




Workers

2.84M



Workforce1

Market2

– Despite high unemployment rate, a labor

shortage in the agriculture sector has

impacted productivity and shifted the hiring

focus to migrant workers.

Legislation4

– Contingent labor is legal in Colombia.

– The Colombian government sets the minimum wage.

– Pay parity is required. Benefit parity is not required,

however, you must provide the same rights for

transportation and meals.

– Background checks are not legal unless the worker

approves. Drug checking is legal.


– Maximum length of assignment is 1 year.

Activity3

– Armed conflict and violence continues in

Colombia, often disrupting work or workers

outside of working hours that can later

impact workforce productivity.

Costa Rica Agriculture 14% Industry 22% Services 64%







Workers

296K



Workforce1

Market2

– A labor shortage exists in key categories

including technicians, production operators and

accounting and finance personnel.

Activity3

– High inflation and cost of living increases

have minimized access to migrant workers in

Costa Rica.

Legislation4

– Contingent work is legal in Costa Rica.

– There are minimum wages that are determined

by specialization of the job and academic

training in particular.

– Pay and benefit parity is required.

– Background/drug checking are legal.

– Standard work hours are 8 hours per day and

48 hours per week.


– Subcontracting is legal.

Dominican Republic Agriculture 15% Industry 22% Services 63%







Workers

712K



Workforce1

Market2

– Increased supply of skilled labor in local market.

Frequent occurrence of workforce strikes in non-

skilled worker categories.

Activity3

– Higher ratio of skilled workers in emerging

workforce expected to support growing

demand for workers in local market.

Legislation4

– Contingent work is legal in the Dominican

Republic.

– There are minimum wages that are required.

– Pay and benefit parity are not required.

– Background checking is not legal, however,

drug checking is legal.

– Standard work hours per week are 44 hours.

– VAT (Value Added Tax) is 16%


Ecuador Agriculture 4% Industry 29% Services 67%







Workers

773K



Workforce1

Market2

– No substantial labor shortages, but competition

for the hiring of skilled workers continues to rise.

– Attrition and worker retention can also be a

problem locally, making worker relations an

important consideration.

Activity3

– Political strife, around government policy with

social groups like the Confederation of

Indigenous Nationalities of Ecuador planning

protests – including a march in March.

Legislation4

– The maximum length of a work day is 8 hours,

with a maximum of 40 hours in a work week.

– There are no invoicing restrictions on staffing

or subcontracting of workers.

– Temporary worker rates must have an

additional 35% of minimum wage for their

industry.

– Paper invoices are required to be generated.

El Salvador Agriculture 19% Industry 23% Services 58%







Workers

437K



Workforce1

Market2

– Emerging workforce is not aligned with current

hiring demand locally, but efforts are underway

to ensure adequate skilled labor will remain

available in El Salvador.

– The lack of bilingual and English –speaking

ability in the workforce has also been a

challenge for global employers hiring in El

Salvador.

Activity3

– The shortage of skilled labor is predominantly

impacting categories like

carpenters/electricians/ plumbers, Sales

representatives, Technicians, Engineers/IT,

Accountants, Mechanics, and Business

Administrators.

Legislation4

– Contingent work is legal in El Salvador.


– Pay and benefit parity are required.

– Background checking is legal, however, drug

checking is illegal.

– Standard work hours per week are 44 hours.



Guatemala Agriculture 50% Industry 15% Services 35%







Workers

1.5M



Workforce1

Market2

– Low rate of unemployment, and increased

investment in local business operations, has

increased challenge to find skilled labor in key

categories.

Activity3

– The shortage of skilled labor is predominantly

in categories like carpenters/electricians/

plumbers, sales representatives, technicians,

engineers/IT, accountants, mechanics, and

business administration personnel.

Legislation4

– Contingent work is legal in Guatemala.


– Pay and benefit parity is not required.



44 hours per week.



Honduras Agriculture 39% Industry 21% Services 40%




Full-Time Employees 2M



Workers

604K



Workforce1

Market2

– Political unrest has had negative impact on

workforce satisfaction, but lack of traction in

union organizations have limited strikes and

other disruptions to business operations.

Activity3

– There are no laws expected to pass in the

short-term that would improve local workforce

conditions.

Legislation4

– Contingent work is legal in Honduras.




– Standard work hours are 44 hours per week.



Mexico Agriculture 18% Industry 24% Services 58%

Market2

– Over 20% of the workforce is unionized in Mexico,

but despite this leverage, recent legislation

supported by the union failed to pass.

– The relative strength of skilled manufacturing

capability is growing at a faster rate than most

other industrial countries, and continues to offer

cost effective production.

– Skilled workers for IT positions are more difficult

to fill due to a gap in language skills.







Workers

6.3M



Activity3

– Recent legislation to update Mexico’s

labor law in favor of employers was

stopped by union activity. The PRI’s bill

would have allowed new categories of

temporary employment, such as 60-day

training periods, 30-day probationary

periods, and seasonal employment.

– Enactment of Labor Law article No. 15

enforces compliance with Social Security

Institute guidelines resulting in financial

penalties for non-compliance.

Legislation4

– The average work week is 48 hours, assuming a

weekly pay rate, with one day off.

– Permissions of the immigration authority are

required for the hiring foreign personnel.

– There is no parity for independent contractors, but if

they work as an employee through the length of

contract, they will be viewed as an employee in a

labor dispute.

– Work on public holidays is required to be paid by 3x

the standard pay rate.

Workforce1

Nicaragua Agriculture 28% Industry 19% Services 53%







Workers

515K



Workforce1

Market2

– High unemployment and low cost of labor both

factor into local hiring opportunities, and there is

minimal competitive activity in hiring skilled

workers locally.

Activity3

– Strikes and union activity continue to be

limited by the need for government approval

and 50% approval within the organization.

Legislation4

– Contingent work is legal in Nicaragua.





48 hours per week.



Panama Agriculture 17% Industry 9% Services 74%







Workers

346K



Workforce1

Market2

– Lack of investment into education system has

resulted in shortage of skilled workers in

emerging workforce.

– The skilled labor shortage is highest for

technicians, sales managers, administrative

assistants and support personnel, and

accounting/ finance professionals.

Activity3

– Social and political unrest continue to result

in an unstable workforce environment.

Legislation4

– Contingent work is legal in Panama.


– Pay and benefit parity is not required.



48 hours per week.



Paraguay Agriculture 27% Industry 18% Services 55%



Total Workforce 3M




Workers

492K



Workforce1

Market2

– Union activity is high and influential. Workforce

strikes are legal and common across most

industries.

– Lack of investment in education system

continues to result in limited availability of skilled

workers.

Activity3

– Rigid labor laws for permanent employees

have increased adoption of temporary work

contracts and renewals to meet business

hiring demands.

Legislation4

– Contingent work is legal in Paraguay.

– There are minimum wages set by the

government. Businesses can determine

wages, but this can sometimes be affected by

unions.

– Pay and benefit parity are not required.

– Background and drug checking are legal.



Peru Agriculture 1% Industry 24% Services 75%







Workers

2.8M



Workforce1

Market2

– Increased competition in hiring market with an

ongoing problem of attrition and a labor

shortage in key categories.

– Long term concerns over labor supply as mining

industry requires increased number of workers

over next few years.

Activity3

– Majority of strikes and business disruptions

are primarily in the mining industry or directly

related to union activity in non-skilled

categories.

Legislation4

– Contingent work is legal in Peru.

– All entities are free to set their own wages.

– Pay and benefit parity is required.

– Standard work hours are 8 hours per day, six

days per week. Overtime is payable after 48

hours per week.


– Length of assignment is limited to 5 years of

continuous work in staffing services.

– Paper invoices are required

Puerto Rico Agriculture 4% Industry 29% Services 67%







Workers

125K



Workforce1

Market2

– Skilled labor has remained difficult to find in

many professional roles.

– The size of the workforce is decreasing in small

increments as migration to other job markets

rises.

Activity3

– Continued impact of Hurricane Irene in many

metro areas has slowly been corrected.

Legislation4

– Maximum length of work week is 40 hours, or

overtime penalties apply.

– ‘At-will’ employment is heavily monitored.

– All terminations are subject to ‘just cause’

requirements.

– Labor Laws apply to permanent employees

and workers for predetermined durations, but

independent contractors are not incorporated

into primary labor regulations at this time.

United States Agriculture 2% Industry 20% Services 78%





Contingent Workers 8M


Workers

5.4M



Workforce1

Market2

– MSP adoption has grown substantially over the

last three years, and is expected to slow over

the next three years.

– There continues to be a cultural gap among the

baby boomers and the younger generations

currently deployed in the workforce, often

mitigated through contingent workforce

programs.

Activity3

– Increased trend in expansion of MSP

programs to extend to SOW and outsourced

workers – most notably in the life sciences

and financial industries.

Legislation4

– The average work week is 40 hours.

– Pay parity is not federally mandated but can

vary based on employer policy.

– There is a minimum contract duration of four

hours, but no restrictions on maximum length

of the contract.

– It is legal to transfer a worker from one supplier

to another, so long as it isn't restricted by their

specific contract.

– TAPFIN typically recommends a vendor-funded

model in the US, using a percent of spend for

the management fee.

Uruguay Agriculture 13% Industry 14% Services 73%







Workers

278K



Workforce1

Market2

– Unemployment rates continue to fall as

employment opportunities increase, skilled labor

is in demand and often unavailable in key

categories.

Activity3

– There is an expected increase in reliance on

migrant workers in 2012.

Legislation4

– Contingent work is legal in Uruguay, but

strongly resisted by trade unions.

– Pay rates are set by the government.


– Background and drug checking are illegal.

– Standard work hours are 44 hours per week for

office work and 48 hours per week for industrial

work.


Venezuela Agriculture 13% Industry 23% Services 64%







Workers

2.4M



Workforce1

Market2

– Economic pressure on local business operations

has negatively impacted workforce satisfaction,

and has begun to affect pay rates and attrition.

– Availability of skilled labor is adequate, and

strategic hiring and employee engagement are

critical.

Activity3

– Organic Labor Laws have been officially

enacted, and prior to them going in effect,

MSPs should be audited to ensure

compliance:

– The work day is now defined as 5am-7pm,

– Maximum hours 8/day 40/week + 2 days off

– Limits severance claims to ten year period

– ‘Outsourcing’ highly restricted and regulated

for certain conditions and parameters

–

Legislation4

– Contingent work is legal in Venezuela.

– There are minimum wages set by the

government.

– Pay and benefit parity is required, with new

social benefits pending Organic Labor Laws.

– Background checks legal. Drug checks aren't.


40 to 44 hours per week.

– Doblete mandates double payment of salary

for unfair dismissal.

– There is a 3 year maximum assignment length,

and a 3 month minimum assignment length.

EUROPE, MIDDLE EAST, AND AFRICA

Detailed Country Analysis


Austria Agriculture 4% Industry 29% Services 67%







Workers

91K



Workforce1

Market2

– Austria has imposed restrictions on migrant

workers from Bulgaria and Romania

– Despite efforts, shortage of skilled workers in IT,

Engineering, and Industrial roles continues to

grow – current estimates suggest a need for

10,000 new workers each year and without

those new workers, one in three companies

struggle to find skilled workers.

Activity3

– The government is working to establish

effective programs to improve level of

education in its workforce – acknowledging

use of foreign workers to augment skills in

the short-term.

Legislation4

– The maximum length of a work day is 10 hours,

with a maximum of 50 hours in a work week.

– There is a clear distinction between blue and

white collar workers, and collective agreements

are in place for all workers.

– Temporary work agreements are legal.

– AWR went into effect on October 1st,

necessitating equal access to shared facilities

and full parity upon the 12th week of

employment.

– Wage dumping is prohibited in the case of

temporary workers.

Belgium Agriculture 1% Industry 25% Services 74%







Workers

69K



Workforce1

Market2

– Belgium has imposed restrictions on migrant

workers from Bulgaria and Romania.

– Shortage of skilled workers in IT and

Engineering.

Activity3

– Local government is under pressure by EU to

potentially modify its system of wage

bargaining and indexing – which could impact

local rate cards if change is implemented

Legislation4

– A strict legal framework regulates temporary

work services, with contract length restrictions

and strict renewal policies.

– Works councils, trade unions or joint

committees must be informed of or consulted

on the dismissal of protected workers.

– Belgian law prohibits an MSP from invoicing on

behalf of suppliers, thus suppliers must invoice

employers directly.

– Workers hired after January 1st, 2012 are

covered by new termination guidelines

established this year.

Czech Republic Agriculture 4% Industry 38% Services 58%

Market2

– The government consistently modifies its

industrial regulations causing disruption to

process and operations in order to maintain

compliance with fluctuating national standards.

– Has less reliance on foreign workers than many

EU countries and maintains a more complex

immigration process than most.

– Concern over future labor supply if local emerging

workforce doesn’t meet hiring needs.







Workers

355K



Activity3

– The majority of union activity and worker

protests are found in the transportation and

logistics industries.

– Most other industries in the private sector

experience minimal conflict.

– Public employees have been more vocal than

private employees regarding workforce

policies and plans.

Legislation4

– An MSP is not allowed to subcontract other

temporary agencies and manage the individual

agreements – each vendor must have an

agreement with the employer.

– Assignments of temporary and incidental

workers are limited to 90 days for each

contract, but there is no limit to renewals

– Pay parity is currently required and benefit

parity is now mandated on the 12th week of

employment under AWR.

Workforce1

Denmark Agriculture 4% Industry 17% Services 79%



Total Workforce 3M




Workers

43K



Workforce1

Market2

– Denmark has one of the most flexible labor

markets, with minimal restrictions on employers.

– Tax structure and Danish language are the two

primary downsides to local establishment of a

global corporation.

Activity3

– Denmark has systematically reduced the

percentage of low-wage jobs across the

country, shifting average wage to a more

competitive level.

– IT wages have been the only major cause for

disruption through union activity in 2011.

Legislation4

– No restrictions on working hours, except

mandate that worker receive an 11 hour break

after working 24 hours.

– There are no restrictions on the duration of a

temporary contract, other than a minimum of 4

hours being required.

– Full parity will go into effect on 12th week,

although no severance is required for

temporary works aside from statutory notice

period.

Finland Agriculture 4% Industry 17% Services 79%







Workers

48K



Workforce1

Market2

– Ongoing concern of skilled labour shortage

across Finland, particularly in Construction and

Service industries.

– Local authorities have suggested possibility of

internal migration self-correcting this shortage

before there is a heavy burden upon local

employers – but there is no widespread

acceptance of this theory

Activity3

– A number of engineering and industrial

strikes (most notably the metal workers)

impacted productivity in 2011.

– There is currently no indication of pending

disruptions of this magnitude.

Legislation4

– No restrictions on working hours, set by

collective agreement

– After 60 months, a fixed-term contract is

subject to the same requirements for

termination as an indefinite term contract

– Temporary worker pay rates cannot be

reduced during an active contract

France Agriculture 4% Industry 24% Services 72%







Workers

397K



Workforce1

Market2

– France has imposed restrictions on migrant


– France has seen a decline in the size and ability

of its IT workforce, and has targeted tertiary

education to align emerging workforce

capabilities with local hiring needs.

– Top performing categories of its workforce are:

– Finance

– Production/Manufacturing

– Maintenance and Repair

Activity3

– Recent political campaigning and ongoing

focus on rigidity of labor code have spurred

renewed discussion of revisions to ease the

hiring process, but no formal plan has been

proposed as of yet.

– Warsmann Law enables flex time, paid leave,

and remote work options for workers once in

effect.

Legislation4

– Subcontracting is illegal in France, however

neutral vendor programs can be established.

– Legislation dictates how many hours can be

worked daily (10 hours) and weekly (6 days).

– Pay and benefit parity requirements exist.

– Temporary work is very regulated – with temp

recruitment restricted to replacement,

temporary increase in business, work that is

temporary by nature, additional training.

– Assignments are limited to 18 months and a

minimum of 4 hours.

Germany Agriculture 1% Industry 29% Services 70%



Total Workforce 42M




Workers

630K



Workforce1

Market2

– Germany continues to be a highly competitive

market for skilled workers, with labor shortages

in major metro markets.

– Germany’s lack of population growth is likely to

impact emerging workforce of the future and

result in continued reliance on foreign workers.

Activity3

– Germany has reduced restriction on non-EU

workers seeking employment locally in an

effort to increase employer access to skilled-

workers.

– Potential change to education requirements

and qualifications could expand access to

foreign skilled workers educated outside of

EU.

Legislation4

– Minimum wages, when established, vary by

industry.

– As of 1/1/11, employers must submit their

employees‘ monthly income data to a

government-sponsored central database.

– Direct invoicing is required thus suppliers have

to invoice clients directly.

– Legislation dictates how many hours can be

worked daily (10 hours).

– No assignment length minimums or maximums.

Hungary Agriculture 6% Industry 27% Services 67%

Market2

– The skilled labor shortage in Hungary has

receded, and IT skills in particular are on the

rise.

– Engineering and IT wages are higher than

similar economies in Europe, but sill

represent a large savings compared to more

developed markets.





Workers

258K



Activity3

– Current political tension is impacting local

labor market through the Public Employment

Service, the Hungarian Work Plan, and

Forced Labor Service.

– Local recruitment and hiring practices must

be governed closely for compliance as well

as effectiveness.

Legislation4

– The work week is restricted to 48 hours, with

a maximum of 200 hours in overtime. The

average work week is 40 hours.

– The establishment of restrictions on contract

duration is currently being considered.

– Full parity is now mandated on the 12th week

of employment under AWR.

Workforce1


3) ManpowerGroup Solutions, Internal Analysis of Worldwide Associated Press Publications; 4) ManpowerGroup Global Client Solutions Annual Survey of Local Country Offerings

Ireland Agriculture 8% Industry 29% Services 63%







Workers

53K



Workforce1

Market2

– Ireland has imposed restrictions on migrant


– Excessive unemployment has reduced the flow

of foreign skilled workers into Ireland, increasing

the competition for skilled talent in the local

market.

– Additionally, there has been an increase of

skilled worker emigration to other EU countries

where labor shortages provide more

opportunities for these workers.

Activity3

– Local government has enacted a number of

plans to create jobs and relieve

unemployment, but hasn’t yet been able to

impact immigration patterns.

Legislation4

– The work week is restricted to 48 hours and

temporary workers are paid the equivalent of

full-time overtime rates.

– Temporary Workers are entitled to 9 holidays

and severance, with full parity on the 12th week

with AWR.

– Temporary contracts shouldn’t be renewed

over 4 years, and anything beyond that must

be open-ended.

Israel Agriculture 18% Industry 24% Services 58%

Market2

– Israel has established a proactive strategy to

increase foreign workers and address labor

shortages in unskilled categories, primarily

construction and agriculture.

– The majority of foreign workers come from

Asia Pacific, predominantly China.

– Skilled national workers continue to struggle

with unemployment.





Workers

211K



Activity3

– New law has been proposed that would require

employers to inform workers of employment

conditions one month prior to starting work. If this

law is enacted, it would shift the burden of proof

from the worker to the employer in cases of legal

disputes.

– Workforce strikes have consistently impacted

multiple industries in 2011, including public sector,

energy, transportation – and has included both

skilled and unskilled workers.

Legislation4

– There is no standard restriction on contract

length; severance and dismissal notification are

standard.

– The work week is restricted to 8 hours/day and 45

hours/week. Overtime is paid at 1.25 of the hourly

wage for the first two overtime hours and 1.50 for

additional hours.

– Two thirds of the work force is unorganized, not

protected by collective agreements, and has

limited protection against dismissal.

Workforce1



Italy Agriculture 5% Industry 32% Services 63%



Total Workforce 25M




Workers

2.6M



Workforce1

Market2

– Italy has imposed restrictions on migrant


– Over 40% of the workforce is affiliated with

union membership

Activity3

– The Direct Hiring Plan, initiated in January,

has increased the availability of seasonal

workers and added to the unskilled workforce

capability, but not to the extent originally

projected.

– Union pressure and threats of strike have

increased focus on Labour Market reform –

including pressure to reduce for dismissal

Legislation4

– Work hours are restricted to 9/day and

40/week.

– Wages are fixed by collective agreements

– Contract length is restricted based on type of

contract - Temporary workers are allowed to

perform specific work or service, in response to

market demand (6 months/year), or to cover a

vacancy (3 months/year).

– Parity is required for both pay and benefits.

– Staffing Agencies are generally allowed to

supply temporary services for administrative or

industrial positions.

– Subcontracting is not allowed.

Luxembourg Agriculture 4% Industry 29% Services 67%



Total Workforce 227K

Full-Time Employees 206K

Contingent Workers 6.8K


Workers

5K

Skilled Contingent Workers 1.8K

Unemployed Workers 13.6K

Workforce1

Market2

– High unemployment (by local standards) and

aggressive competition for skilled labour jobs

have resulted in Luxembourg extending the ban

on Bulgarian and Romanian workers –

potentially through 2014.

Activity3

– Strong union activity has led to a number of

independent protests at production facilities –

generally in response to corporate action that

was deemed ‘unfair’.

– No widespread or industry-based workforce

disruption has occurred in recent years.

Legislation4

– Work hours are restricted to 10/day and

48/week.

– Contract length is restricted to 12 months.

– Parity is required for both pay and benefits.

Morocco Agriculture 12% Industry 29% Services 58% - doesn’t add up to 100

Market2

– The hiring of skilled labor is highly

competitive in Morocco across all

industries.

– The number of skilled workers continues to

increase in Morocco, but the economy

remains heavily geared toward agriculture.

– The transition from non-skilled to a skilled

workforce has created gaps between hiring

needs and skills.







Workers

363K



Activity3

– There have been ongoing protests in

Morocco across the workforce, with

expectations of constitutional reform up

and down since July of this year.

Legislation4

– The average work week is 44 hours.

– Temporary contracts no longer exist under Moroccan

law and determined period contracts may only be

concluded in the following cases:

– Employee replacement

– Due to temporary increase in activity

– If the work is of a seasonal nature

– In case none of the above applies, then the contract

must be concluded for an undetermined period.

Workforce1

The Netherlands Agriculture 4% Industry 23% Services 73%



Total Workforce 9M




Workers

804K



Workforce1

Market2

– Netherlands has imposed restrictions on migrant


– High cost of dismissal continues to make

contingent labor a cost effective option, despite

parity requirements.

Activity3

– The Central Bureau of Statistics reported in

April that almost 50% of the workforce is part-

time.

– Effective in 2011, simplified filing procedures

and new sponsorship obligations are in effect

for employers hiring foreign workers.

Legislation4

– Annual reporting requirements include hours,

compensation, and demographic details.

– Collective labor agreements are enforced, one

example is that temporary workers can’t be

used during strikes in maritime or public

transportation.

– Job requirements can’t include ‘years of

experience’, as this is considered

discriminatory.

– Parity requirements exist including severance.

– No priority rules for re-employment.

Norway Agriculture 4% Industry 22% Services 74%







Workers

92K



Workforce1

Market2

– There is a growing shortage of skilled labor in

Norway, particularly in:

– Health service workers

– Engineers

– Building and construction workers

Activity3

– Terrorist attacks earlier this year, had some

impact on local hiring, the migration of foreign

workers, and other local workforce dynamics

– but the local market appears to be

rebounding.

Legislation4

– The work week is restricted to 9 hours/day and

40 hours/week.

– Local law prohibits an individual working more

than 200 hours of overtime annually.

– Employment contracts cannot exceed 4 years

in duration, or the worker can claim permanent

employment status.

– There is no minimum wage law in Norway.

Poland Agriculture 16% Industry 29% Services 55%

Market2

– The number of temporary workers in

Poland grows by an average of 20%

each year.

– The local economy and hiring market

supports employment growth.

– Migration of skilled workers out of

Poland has slowed.







Workers

716K



Activity3

– In September, Poland announced a new

regularization program for 2012 which will

simplify some of the guidelines and

process for the employment of foreign

workers.

Legislation4

– Maximum work week is 48 hours and runs Monday-Friday

or Saturday. Overtime cannot exceed 150 hours per year.

– After six months, a temporary worker is entitled to a

vacation.

– Maximum contract length is 18 months in a 36 month

period (standard length is 12 months). A temporary

contract for the entire 36 months of work during a single

period requires set guidelines.

Workforce1

Portugal Agriculture 11% Industry 31% Services 58%







Workers

960K



Workforce1

Market2

– Skilled labor shortage is being further impacted

by worker migrations out of the country.

– MSP is not commonly adopted in Portugal at

this time, but it is an emerging market of interest

for employers looking to optimize local

workforce programs.

Activity3

– In August, the Finance Minister projected a

1.8% decline in economic growth through

2012, before it begins to rebound in 2013.

– Over half a million people have protested

youth unemployment and austerity measures

this year – discontent is rising with the

government’s workforce policies.

Legislation4

– Working hours are limited to 8/day and

40/week.

– Contract assignments are limited to 2 years.

– Parity requirements exist for both pay and

benefits.

– Early pension is allowed at age 55, with 30

years of contribution.

Romania Agriculture 31% Industry 31% Services 38%







Workers

444K



Workforce1

Market2

– Only 30% of the population speaks English.

– There is heavy competition for IT workers in the

local market.

– Romanian workers have equal rights to enter

other EU countries but, like Bulgarians, are

confined by heavy restrictions on access to

foreign work – resulting in heavy fluctuation

worker migration in and out of Romania.

– Labor shortages across Romania for skilled

workers.

Activity3

– In August, Spain modified its foreign worker

policy to restrict the influx of Romanian

workers – potentially improving Romania’s

ability to retain more of its temporary

workforce.

Legislation4

– 48 hour maximum work week (including

overtime).

– Pay parity is required; benefit parity is required,

but leaves room for interpretation.

– Temporary workers used for seasonal activities,

specific activities and replacement of permanent

employees whose contracts are suspended for

reasons other than strike.

– Assignments limited to 18 months.

Russia Agriculture 10% Industry 32% Services 58%

Market2

– Aging workforce, combined with reduced size

of emerging workforce, has economists

predicting a labor shortage by 2025.

– The shortened life expectancy of the Russian

worker has increased the rate at which local

labor supply is being consumed.

– Increased reliance on migrant workers is

ongoing.





Workers

1.73M



Activity3

– Russia has imposed more rigid restrictions on

migrant workers, particularly those from Asia, to

reduce the total number of migrant workers

available to local employers over time.

– Russia recently announced an ambitious plan to

create 25 million high productivity jobs by 2020.

– Ongoing skill gap in emerging workforce and job

requisitions – mismatch prompts concern over

announcement of job growth in local sectors

Legislation4

– Contingent labor is not restricted by local

legislation, but there are no defined laws.

– Minimum wages are set by the government.

Pay and benefit parity are optional.

– Background checking is legal; however, drug

checking is not legal.


– Invoices are required to be in paper form.

Workforce1



Slovakia Agriculture 6% Industry 38% Services 56%







Workers

51K



Workforce1

Market2

– Slovakia’s aging workforce is expected to impact

local labor supply.

– Local market for hiring in light industrial is highly

competitive, with employers proactively targeting

skilled workers in school, prior to them entering

into the workforce.

– Unemployment is effecting non-skilled workers,

more than skilled workers.

Activity3

– As of July, Slovakia has issued EU work

cards to increase the flow of migrant workers

from other EU countries to augment its

current supply of skilled workers.

Legislation4

– The statutory working week is 40 hours, and

the average cannot exceed 48 hours with

overtime.

– Full parity exists, including wage equity, paid

time off, holidays, and collective bargaining.

– 3 year maximum exists for fixed term contracts,

and requires e a 6 month lapse before renewal.

– Equal access to job notifications is mandated.

Slovenia Agriculture 6% Industry 40% Services 54%



Total Workforce 1M

Full-Time Employees 851K



Workers

18.2K

Skilled Contingent Workers 6.7K


Workforce1

Market2

– Local market for hiring in Engineering is highly

competitive.

– Unemployment is affecting non-skilled workers,

more than skilled workers.

Activity3

– Local disputes over austerity policies and

political instability over the past few months

could result in local employment challenges.

Legislation4

– Temporary employees share the rights and

benefits of full time employees including wage

equity, paid time off, holidays, and collective

bargaining.

– Employers must share news of all job openings

with temporary employees, providing them with

the same access to internal promotion as a

permanent employee.

– Employers are obligated to announce and

register vacant jobs or types of work with

determined terms for work performance to the

Employment Service of Slovenia.

South Africa Agriculture 30% Industry 25% Services 45%







Workers

3M



Workforce1

Market2

– A key initiative of the South African Government

is to create jobs – overall unemployment is at

25.7% with youth (15-24 year olds) at double

this rate.

– The severity of the skilled-labor shortage is

being addressed by targeting foreign workers to

fill the gap.

Activity3

– South African Revenue Service has

established a biannual revenue reconciliation

system, PAYE (Pay as You Earn) that

simplifies annual reporting but requires more

frequent submissions for all revenue, payroll,

and financial activity.

– Ongoing strikes and labor restrictions

impacting local hiring of foreign employers

and expected to impact long term job market

– but no local regulatory changes have

gained traction to adjust hiring activity.

Legislation4

– Average working hours in a week is 40.

– Full parity exists for both pay and benefits.

– Overtime is limited to 10 hours/week and 3

hours/day.

– Visas are required to be eligible to work in SA.

– Employers must adhere to the Employment

Equity Act.

Spain Agriculture 5% Industry 30% Services 65%







Workers

5.1M



Workforce1

Market2

– Spain has a robust temporary workforce that

spans most industries.

– A heavy percentage of emerging workers are

currently among the unemployed.

– Germany continues to target Spain for skilled

workers – increasing the competition for the

most desirable candidates.

Activity3

– Increased protests and strikes are impacting

multiple industries as labor reform

discussions accelerate strain on local

workforce discontent.

– The primary focus of protests are the new

labor laws that allow companies to

circumvent collective bargaining agreements,

reduce wages and reduce regulation of

worker dismissals.

Legislation4

– Working hours are limited to 9/day and

40/week.

– Wages are fixed by collective agreements, and

assignment length is restricted based on the

type of contract.

– Pay and benefit parity are required, with some

variance in ETT´s collective agreement.

– Temporary workers are allowed for specific

work/ service, to meet market demand (6-12

months), to replace worker (with job

reservation rights), and for temporary

vacancies (3-12 months).

Sweden Agriculture 2% Industry 24% Services 74%



Total Workforce 5M




Workers

166K



Workforce1

Market2

– Current labour shortages in Sweden include the

following skills:

– Mechanics

– Accountants

– Civil Engineers

– Commercial Sales Reps

– Telecom Programmers

– Electrical & Mechanical Engineers

– Nurses

– IT Analysts

Activity3

– Unions in Sweden are very active and vocal,

supporting not only the local workforce, but

keeping local workers engaged in events and

rights of workers across Northern Europe.

– The Swedish Migration Board and the

Swedish National Employment Office both

report that the number of migrant workers

has doubled since 2004 and continues to rise

into 2012 – they continue to focus on aligning

migrant worker trends with actual and

predicted labor shortages.

Legislation4

– Fixed term contracts are allowed for permanent

and temporary tasks up to 2 years (24

months).

– There is no national requirement for overtime

pay – these rates are set by collective

agreement.

– Limit of 48 hours of overtime in a 4 week

period, or 50 hour maximum in a calendar

month.

– Maximum limit of 5.5 days worked per week.

Switzerland Agriculture 5% Industry 26% Services 69%







Workers

239K



Workforce1

Market2

– Local research studies suggest a shortage of IT

labor to emerge in the next five years, but there

is renewed focus on ensuring the right skills are

being taught to those entering the workforce in

the next few years.

– Switzerland is in the group of OECD countries

with the highest unemployment benefits - more

than 70% of average earnings; and in

Switzerland low-paid people, could conceivably,

lose money by going back to work.

Activity3

– Switzerland’s work permit quota was

increased by over 1,000 employees this year,

with almost 40% of them reserved for EU

countries.

– There has been a substantial increase in

migration of non-skilled workers from

Portugal, Germany, and Italy.

Legislation4

– In most cases there is not a minimum or

maximum assignment length.

– Parity requirements exist for pay and benefits.

– Employees have to terminate their working

contract with their existing supplier and have to

enter a new working contract with their new

supplier.

– Candidate may lose benefits dependent on

assignment length.

Tunisia Agriculture 18% Industry 32% Services 50%







Workers

880K



Workforce1

Market2

– Increased availability of skilled labor, particularly

in Engineering and IT.

– Roughly 65,000 students graduate from higher

education each year, including 4,109 engineers.

– 30% of graduates are in the fields of

engineering, computer sciences,

communications and other technical fields.

Activity3

– The Tunisian Revolution has substantially

shifted the political foundation of Tunisia.

– A Constituent Assembly is scheduled for later

in October to determine new leadership.

– The results of this assembly could impact

local employment conditions.

Legislation4

– The maximum work week is 48 hours.

– Maximum contract length is four years.

Turkey Agriculture 29% Industry 25% Services 46%







Workers

4.1M



Workforce1

Market2

– From an economic and labour standpoint,

Turkey is reported to have accelerated its

recovery from 2009, and now has a number of

fiscal and employment policies in place to

facilitate employers in strengthening their

workforce.

Activity3

– There have been a number of wage

adjustments and minor policy changes as a

result of targeted workforce strikes and

organized protests in parts of Turkey’s

industrial sector.

Legislation4

– There is no specific legislation for contingent

work in Turkey.

– Minimum wages are set by the government.

– Pay parity is required, but benefit parity is not.

– Background checking is legal, however, drug

checking is not.


Employees may work a maximum of 11 hours

per day and a maximum of 270 hours of

overtime per year.


Ukraine Agriculture 17% Industry 24% Services 59%



Total Workforce 23M




Workers

2.2M


Unemployed Workers 2M

Workforce1

Market2

– Adequate supply of labor for skilled and non-

skilled work categories.

– Ukraine has relative high rate of skilled workers

in science and technology, while maintaining

competitive costs of labor.

Activity3

– The right to strike is restricted to specific

industries and has stringent guidelines of

participation and approval.

– Despite restrictions, there were a number of

disruptive strikes in the transportation and

manufacturing industries in 2011.

Legislation4

– Average work week is 40 hours.

– The government sets the minimum wage.

– All employment documents and staffing

invoices must be submitted in original paper

form, legislation does not permit electronic

invoicing.

– There is no specific legislation for temporary

employment, but it is not restricted.


United Kingdom Agriculture 2% Industry 19% Services 79%







Workers

1.7M



Workforce1

Market2

– The United Kingdom has imposed restrictions

on migrant workers from Bulgaria and Romania.

– Following the enactment of AWR, the Tribunal

has announced that effective April of 2012,

unfair dismissal claims will be limited to

employees who have been employed for over

two years (as opposed to the current one-year

limit).

Activity3

– Current review of new policies that would

increase regulation of employment law within

the banking industry with more stringent

guidelines on candidate review, hiring, and

workforce management.

Legislation4

– Employees limited to a 48 hour work week.

– Night workers are limited to an average of eight

hours in each 24-hour period.

– Number of hours worked is limited by WTR.

– The default retirement age, allowing

companies to force retirement at age 65 has

been removed, and there are long term plans

to increase the pension age to 66.

– Pay parity is required, and AWR went into

effect on October 1st.

ASIA PACIFIC Detailed Country Analysis


Australia Agriculture 4% Industry 26% Services 70%



Total Workforce 12M




Workers

1.8M



Workforce1

Market2

– A shortage of skilled workers exists and the

Australian Ministry is actively supporting an

effort to recruit foreign workers to meet the local

employment need.

– Aggressive action to recruit temporary workers

from other countries from other countries –

particularly New Zealand and Philippines and

some Northern European economies.

Activity3

– Fair Work Act under increasing scrutiny,

which could result in decreased restrictions of

employer guidelines in hiring and firing of

workers.

Legislation4

– Local legislation mandates a 38 hour week.

– Parity not required for casual/temporary

workers.

– Length of assignment restricted to one year

after which it is recommended (but not required)

that the temporary worker be hired as an

employee.

– Under the Fair Work Act of 2009, employers are

given broad discretion in hiring casual workers.

As there are no mandatory benefits assigned to

the casual worker, pay loadings of at least 20%

are required on the basic rate of pay.

China Agriculture 49% Industry 22% Services 29%







Workers

88M

Skilled Contingent Workers 17M


Workforce1

Market2

– Skilled worker shortage is increasingly impacting

hiring needs of local employers and is expected

to get worse as the aging workforce continues to

outnumber emerging workforce in short term

future.

– Regulatory changes in favor of employees in

2008 resulted in substantial increases to the

cost of labor in China for both domestic and

foreign employers focused on manufacturing.

Activity3

– New legislation reviewed that impacts

severance calculations, social insurance

requirements, and tax liabilities of employers

contracting labor.

Legislation4

– Working hours are restricted to 8 hours a day

and 44 hours a week.

– Independent contracting is legal in China,

except in the healthcare industry.

– Contingent contracts have a required minimum

of two years in duration, but this does not apply

to 1099 or SOW.

– Temporary workers are entitled to full parity,

including severance upon termination.

Hong Kong Agriculture 2% Industry 35% Services 63%







Workers

354K



Workforce1

Market2

– The Hong Kong unemployment rate is at a 13

year low, with less reliance on migrant workers

than it has had in the past.

– Hong Kong reports widespread shortage of

skilled workers for key industries and is

implementing a number of migrant worker

policies to try and meet demand.

Activity3

– Work Incentive Transport Subsidy is latest

effort of local government to promote the

mobility of its workforce across the country –

there is minimal impact to employer costs

and process but projected benefits in

availability of skilled labor in previously

understaffed regions.

Legislation4

– The maximum number of work hours a day is 8

with the maximum per week being 40.

– Workers are entitled to one day off for every 7

worked.

– There are few restrictions on how employers

hire or fire employees.

– With the introduction of Minimum wage, any

worker who is under a continuous contract of

employment (working for at least 4 weeks and

a minimum of 18 hours a week) is entitled to

benefits regardless of whether they are

temporary or part-time.

India Agriculture 60% Industry 17% Services 23%







Workers

114M



Workforce1

Market2

– Despite interest rate rises, high inflation (~ 9%)

has contributed to India having the highest wage

inflation of any of the Asian economies.

– Wage inflation in 2010 was estimated at an

average of 15% while for 2011, it is expected to

be highest in the engineering and automotive

industries with forecasts around 14%.

– The Manpower Talent Survey, reported 67% of

Indian employers were experiencing difficulty in

filling critical positions.

Activity3

– In October, the Indian High Commission

announced a minimum wage increase,

effective, November 1st along with new

guidelines and documents for skilled and

non-skilled workers.

– According to this announcement, skilled

workers in all trades will have a minimum

wage of RM1,200 a month.

Legislation4

– The average number of working hours in a

week is 40.

– Temporary workers must have pay and benefit

parity with permanent employees in the same

position at the customer.

– Work eligibility is regulated by the Immigration

Department which provides for Service

Contract Sponsorship and grants visas for

taking up employment in India for a fixed term.

Subsequent renewals are granted by the

Immigration Department from time to time.

Japan Agriculture 4.5% Industry 28% Services 67.5%



Total Workforce 66M




Workers

14M



Workforce1

Market2

– An aging workforce coupled with recent natural

disasters have reduced the attractiveness of the

local labor market.

– The Ministry of Health, Labor, and Welfare

continues to restrict immigration.

Activity3

– Change to Worker Dispatch Law will require

that staffing agencies of outsourced

employees must disclose their commission

rates.

– The Dispatch Law will also enforce pay parity

for contract and outsourced workers.

Legislation4

– The work week is set at 8 hours/day and 40

hours/week.

– Length of assignment restricted to one year,

after which point, the government

recommends, but does not force, the employer

to hire the temporary worker as an employee.

(exceptions for some skills).

– Regulations recommend against, but do not

prohibit, contract extensions beyond three

years.

– There is no pay or benefit parity for temporary

workers.

Malaysia Agriculture 14% Industry 36% Services 50%



Total Workforce 12M




Workers

1.6M



Workforce1

Market2

– Malaysia has almost 100,000 foreign

manufacturing workers, and almost 2 million

foreign workers overall.

– The largest portion of migrant workers come

from India, and there is a growing population of

IT workers available locally.

Activity3

– Malaysia will be raising the levy on all

migrant workers in 2012.

Legislation4

– The maximum work week is 48 hours.

– There are no restrictions on the contract length

for a temporary worker.

– There are no parity requirements in place.

New Zealand Agriculture 10% Industry 25% Services 65%



Total Workforce1 2.3M




Workers

220K



Workforce1

29%

71%

Breakdown of Contingent Workforce

Skilled Non-Skilled

Market2

– Labor shortages are on the rise as migrations to

Australia and other countries continue at

increasing rates.

Activity3

– Recent earthquakes and environmental

damage has impacted local business

operations and added to the hiring burden in

local market.

Legislation4

– Subcontracting is legal in New Zealand.

– There is a minimum assignment length of 4

hours.

– Full pay parity is not required, however

temporary workers are required to have the

same leave as permanent employees.

– There is no separate legislation for MSP

models, however both Vendor Neutral and

Master Vendor programs are legally allowed.

Philippines Agriculture 36% Industry 16% Services 48%







Workers

8.4M



Workforce1

Market2

– Local labor force is heavily targeted by

surrounding countries to migrate and support

their labor shortages.

Activity3

– Philippines just lifted the ban on its workers

migrating to Iraq in the Kurdistan region, and

many workers are expected to migrate.

– Continued pressure from workers to increase

wages and establish tenure processes and

options.

Legislation4

– The work day is set at 8 hours and there is a

maximum of 6 days in a given work week.

– Contract length is not restricted by legislation

at this time.

– O/T is 25% over standard pay for anything over

8 hours/day and 30% on holidays and

weekends.

Singapore Agriculture 0% Industry 27% Services 73%







Workers

112K



Workforce1

Market2

– Singapore is benefiting from increase level of

skilled migrant workers, particularly from India to

meet the demand for its growing economy.

Activity3

– Increased regulation of migrant workers

requires employers to insure and cover

medical costs.

Legislation4

– Working hours restricted to 8hours/day and 44

hours/week.

– There is no minimum wage set in Singapore.

– Pay parity is required; there is no distinction

between temporary, full-time, or contract labor.

– Termination notice periods vary by length of

service and can range from 1 day to 1 month.

– The Employment Act does not mandate any

severance upon early termination of contract.

South Korea Agriculture 8% Industry 19% Services 73%







Workers

5.8M



Workforce1

Market2

– South Korea has established a proactive

migrant worker program, and is targeting India

for skilled workers.

– There is a labor shortage across most

industries.

Activity3

– Despite substantial improvement to the local

work environment, recent surveys by the

Ministry of Labor report continued employee

dissatisfaction in wages and work quality,

while employers struggle to fill positions

locally across most industries.

Legislation4

– Work week is 40 hours, but the combination of

shifts is flexible and not restricted to 5 days.

– Maximum length of temporary employment

contract is two years, but there is no minimum

length of assignment.

– After a period of two years, the employer is

expected to hire the temporary worker rather

than extending the contract.

– Full parity requirements exist.

– After one year or employment, a temporary

worker is entitled to severance pay in the event

of termination.

Taiwan Agriculture 6% Industry 36% Services 58%



Total Workforce 11M




Workers

1.6M



Workforce1

Market2

– Taiwan’s labor shortage is on the rise,

particularly in the tech sector.

Activity3

– Despite minimum wage increases in January

of 2012, industrial protests have continued to

be scattered across the regions in certain

sectors.

Legislation4

– Standard work day is 8 hours, with maximum of

12 allowed.

– Total hours worked cannot exceed 84 hours in

two weeks and O/T cannot exceed 46 hours.

– Rigid O/T regulations set rates at 33% first two

hrs; 67% next 2 hrs; 100% after that.

– Contracts are generally recommended to be in

6 or 12 month increments, with 12 months

being the maximum contract length allowed.

Thailand Agriculture 49% Industry 14% Services 37%




Full-Time Employees 34.7



Workers

3.5M



Workforce1

Market2

– There is a growing shortage of skilled labor in

the manufacturing and light industrial markets.

– Manufacturing is the largest growing sector in

Thailand at this time.

Activity3

– The flooding that began in July continues,

and has had an impact on local operations

and a large number of migrant workers.

Legislation4

– Partial benefit parity requirements exist for

temporary workers, but there is no pay parity

mandated.

– The maximum working hours are 8 hours/day

and 48 hours/week.

Vietnam Agriculture 48% Industry 22% Services 30%



Total Workforce 47M




Workers

7.4M



Workforce1

Market2

– Labor shortages are scattered across the region

in many skilled areas, and a number of isolated

strikes have occurred, disrupting operations for

many businesses.

Activity3

– The cost of labor in Vietnam has risen in the

past 24 months, causing a number of foreign

businesses to reevaluate their local

operations.

– Protests and strikes have risen drastically

since 2006, with 857 strikes recorded in

2011.

Legislation4

– Standard work day is 8 hours.

– Maximum contract length is 36 months.

– O/T restricted to 4 hours/day and 200

hours/year unless certain circumstances apply.

– O/T rates are 50% on a weekday, 100% on

weekly holiday/rest day, 200% on national

holidays and paid leave days, and 30% for

night work.

global contingent workforce - global workforce insights...workers has declined by 2.2 million...

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