8 Key Stats in the New Global Labor Market

International expansion is set to be a key agenda item for recruiters for many years to come. Research from Maxis Global Benefits Network shows that 1 in 3 multinationals is expecting 70% or more of its revenues to come from international markets in five years, and one in four companies expect to enter new international markets in the next five years. The Maxis research also shows that 60% of CEOS fear that staffing and recruitment issues will impact their global strategy, (they worry about it more than revolution or recession apparently!).

CEOs and senior leadership will be depending on their recruiters to be designing effective global recruitment and resourcing strategies to support their firm’s international growth and expansion plans. I therefore thought it timely and appropriate to set out 8 key global labor market trends that international recruiters should be aware of when planning their global resourcing initiatives — and these are listed below.

1. According to Maxis research, Brazil, China, India and the U.S. are top choices for companies looking to sell products. These areas are likely to be key international expansion locations for your businesses and recruiters should begin understanding the labor dynamics and sourcing potential of these countries.
2. Research from Goldman Sachs suggests that the key global growth markets (which are countries outside the developed world that account for at least 1% of GDP) are the BRIC countries of Brazil, Russia, India and China, as well as Mexico, South Korea, Turkey and Indonesia. BRIC countries are expected to experience a faster than average growth rate going forwards, so clearly an area for global recruiters to be thinking about.
3. The Goldman research also indicates that by 2020, the four BRIC economies, (Brazil, Russia, India and China) will account for nearly 50% of the increase in global GDP so global recruiters should be focusing their thoughts on these markets as real long term prospects.
4. While global growth is going to be focused on BRIC countries, employers and recruiters should be aware that according to research from Mercer’s Inside Employee’s Minds survey, the BRIC countries of Brazil and India are predicting the lowest rates of staff loyalty of the major economies. In Brazil, 56% of staff are considering leaving and in India its 54% (its 56% in Mexico), compared to figures of between 30% and 36% for US, Canada, France, Germany and China. Clearly, global talent management is more challenging in certain areas and recruiters must be aware of the danger spots.
5. Research from Ernst and Young, Growing Pains: Companies in Rapid Growth Markets Face Talent Challenges as They Expand, suggests that businesses are struggling to to develop effective international management teams with only 30% of respondents to the survey believing that their top teams have an international outlook or have any experience working outside the country. Should international experience should become more of a core recruiting requirement in international businesses?
6. Research from Heidrich and Struggles  which was presented in their Global Talent Index Infographic tells us that the most skilled labor forces in the world in rank order are: Denmark, Finland, Israel, US, Sweden, Singapore, Canada, Switzerland, Australia and Germany.
7. More research from Heidrick and Struggles tells us that the countries that have the most open labor markets in terms of the inward and outward flow of talent are, in order of openness: Hong Kong (by some clear distance), then Ireland, (by some clear distance ), and then Singapore (by some clear distance), followed the rest including: Belgium, Slovaki, Hungary, Netherlands, Switzerland, Sweden, Romania.
8. The Heidrick and Struggled research also revealed that, as identified earlier as a key growth market, India was the second most ‘closed’ labor market in terms of labor flows so much food for thought for global recruiters looking to move talent in and out of that market.