asian talent market update 2012

APAC Talent Market Updatepopulation, employment, wage and labour legislation trends in five key countries in the asia-pacific region: australia, china, india, Japan and new Zealand

2012/2013

workforce trends in apacmedian age

With a projected region-wide unemployment level of just 7% by 2013, the labour market outlook has shown resilience to global upheaval.

wage growth forecast – 2012 estimate

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training, mobility and flexibility

4.2 billion people live in the apac region, more than half of the world’s estimated 6.9 billion people.

APAC’s ongoing prosperity and development will depend somewhat on specific and deliberate responses to growing demand for skills, experience and flexible labour across the region. As with other markets around the world, the focus must be on equipping the workforce with the right skills, and this presents significant challenges for developing countries with large populations.

45Japan

Average age is the second oldest in the world.

38australia

37new Zealand

36china

The median age is above the world average of 28, with declines in the working age population expected by 2016.

26india

Approximately one-third is below the age of 15 and only 5% are over 65.

together, india and china represent

40% of the world’s population.

By 2014, it’s estimated China’s

surplus labour supply will dry up, prompting hikes in wages, costs

and inflation. India represents the single largest pool of young,

potentially skilled labour in the world.

The Australian Government is seeking

a 60% increase in skilled immigrants under the Regional

Sponsored Migration Scheme.

APAC Talent Market Update

3

4 introduction

5 apac economic outlook Growth, recovery and ongoing pressures

7 population, labour market and wage trends It’s the world’s most populous region Employment holds steady in the face of numerous challenges High employment will compound skills shortages All eyes turn to China and India APAC workers can expect higher salaries

13 industry outlook Biotech, Contruction and Energy among the growth industries

15 growth industries by country Australia / China / Hong Kong / India / Japan / New Zealand

21 legislative update Governments take steps to combat talent shortages

23 country summaries Australia / China / Hong Kong / India / Indonesia / Japan / Malaysia / New Zealand / Singapore

29 conclusion

30 about us

CoNtENtS


4

what can we expect from apac in 2013?

emerging markets are playing an increasingly important role in the global economy. as the world’s most populous region, asia-pacific is central to this shift.

Economic uncertainty is having its impact here, as it is everywhere, yet the business and labour market outlook for Asia is now the exception to a seemingly global rule.

Some industries in the region’s developed economies (particularly manufacturing and other primary industries) are seeing long-term declines. Yet, the over-riding theme is one of growing demand for technical skills, and a higher proportion of skilled employees across the Asian working population.

India may still have one of the highest official unemployment rates in the region, but it also presents one of the biggest opportunities for the region, with a young and well-positioned workforce. China continues to dominate the economic landscape, yet the impact of growth is now being felt much further afield, and investments in education across Asia are reaping rewards.

Legislative trends continue to focus on up-skilling labour forces and reducing barriers

to skilled migration, as well as supporting growth industries and shoring up consumer and business confidence. Cash reserves are relatively high and debt is moderate by world standards, so the region overall occupies an enviable position to absorb further instability.

In this report, we examine the trends and indicators that are shaping the economic and labour market outlook for the Asia-Pacific region over the next two to three years. We provide updates

on major legislative changes, population and demographic profiles, as well as our insights into the overall labour market.

All eyes are on what happens next in Asia. In this report, we hope to give you a small insight into just what that might look like.

dhirendra shantilal

svp kelly services asia pacific

introduction

apac economic outlook

population, labour & wage trends

industry outlook

growth industries by country

legislative update

country summaries

conclusion

about us

dhirendra shantilal

/ Introduction


5

APAC Economic Outlook

introduction


Growth, recovery and ongoing pressures


industry outlook


legislative update

country summaries

conclusion

about us

5

/ APAC Economic Outlook


6

Despite Northern Asia’s current economic dominance in APAC, Southern Asia’s more favourable demographic profile offers a clear long-term economic opportunity within the region.

With wage growth and skilled labour shortages in some markets, growth will depend upon flexibility and mobility of workforces, as well as the timely action of governments and corporates to stem productivity constraints.

growth, recovery and ongoing pressures

growth & recovery

Å With a projected region-wide unemployment level of just 7% by 2013, the labour market outlook has shown resilience to global upheaval. Several countries saw their unemployment peak earlier, and at lower levels, than expected.

Å Despite an ageing working population across the region, India presents the single largest pool of young, potentially skilled labour in the world. Approximately one-third of India’s population are below the age of 15 and only 5% are over 65, implying a falling dependency ratio and a significant increase in the working population.

pressures

Å It is estimated that around half of the region’s workers (50.8 %) are in ‘vulnerable employment’. Although employment statistics have held steady throughout global recession fears, it is likely that many workers affected by the crisis have sought alternate forms of employment, perhaps in the informal economy.

Å Global financial uncertainty could continue to negatively impact recruitment.

Å Japan’s average age is now approaching 45 (the second oldest in the world) and China’s population policies have pushed the median age above the world average, with declines in the working age population expected by 2016.

introduction


Growth, recovery and ongoing pressures


industry outlook


legislative update

country summaries

conclusion

about us

/ APAC Economic Outlook


7

Population, Labour & Wage Trends

introduction



World’s most populous region

Employment holds steady

Skills shortages

China and India

Higher salaries

industry outlook


legislative update

country summaries

conclusion

about us

7

/ Population, Labour & Wage Trends


8

it’s the world’s most populous region

The APAC region is home to more than 4.2 billion people. It accounts for more than half of the world’s estimated 6.9 billion people, including 6 of the 10 highest population countries: China, India, Indonesia, Pakistan, Bangladesh, and Japan.

China and India together represent almost 40% of the world’s population, more than the population of the next 20 largest countries combined.

Approximately one-third of India’s population are below

the age of 15 and only 5% are over 65, implying a steady rise in the working-age population and a falling dependency ratio (proportion of non-working population to working population).

In contrast, Japan’s average age is now approaching 45 (the second oldest in the world) and China’s policies to control population growth in the 1970s have pushed the median age above the world average, with declines in the working age population expected by 2016.

median age by country: 2011

MIDDLE EAST & AFRICA

EMEA

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Skills shortages

China and India

Higher salaries

industry outlook


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9

Sources: Global Insight; Forbes.com; Xinhau News Agency; China’s Big Unemployment Problem—Marketplace From American Public Media

employment holds steady in the face of numerous challenges

Labour markets are clearly on the mend, and in several countries unemployment has peaked earlier and at lower levels than predicted. Unemployment across APAC is forecast to continue its gradual downward trend, approaching 7% by 2013.

estimated unemployment rate: 2012

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Skills shortages

China and India

Higher salaries

industry outlook


legislative update

country summaries

conclusion

about us



10

high employment will compound skills shortages

Å china created 12 million new jobs in 2011, and maintained its 4.1% unemployment rate, yet this rate reflects urban registered workers only and does not take into account the large numbers of migrant workers. The government plans to include migrant workers in their statistics this year, hence an increase is likely. The quality of China’s higher education system remains a challenge as an estimated 30% of this year’s 6 million college graduates have failed to find work.

Å india’s unemployment rates remain relatively high due in part to their highly restrictive labour laws, but the strong economic outlook is forecast to push unemployment rate below 9% by 2016, its lowest level in more than a decade. A growing number of private employers believe the lack of skilled talent will limit their growth performance this year, but are cautiously optimistic in their hiring plans.

Å In australia, forward-looking indicators point to a softening in the labour market, with unemployment inching back up to 5.2% in early 2012, but expected to fall to just 4.5% by 2016 as demand for skilled workers remains strong. Rebuilding efforts following the Queensland flooding and a booming mining sector are contributing to Australia’s current skills shortages. Employment growth was reported at 0.9% over 2011, but is forecast to be stronger (2%+) through 2012.

Å Japan’s disasters caused unemployment to spike above 5% in early 2011, then level off at 4.6 per cent. As the recovery effort accelerates, the lag between growth and hiring means that the jobless rate will see little improvement until late 2012/early 2013. Sectors such as construction and healthcare are showing the greatest job gains, while manufacturing employment continues to drop. The forecast for 2012 shows the strongest hiring plans since the third quarter of 2008. However, Japanese companies are also reporting the greatest global hiring challenges, with 4 out of 5 employers finding it difficult to hire workers with the right skills.

Å new Zealand’s employment growth will be significantly limited by skill shortages in the construction and engineering sectors where labour demand has skyrocketed due to earthquakes in Christchurch. Employment growth for 2011 was a weak 1.1 per cent.

introduction





Skills shortages

China and India

Higher salaries

industry outlook


legislative update

country summaries

conclusion

about us



11

all eyes turn to china and india

With many markets experiencing labour shortages, the growth and economic expansion in both China and India are being watched with particular interest.

The way in which both of these economies overcome productivity constraints, such as education and training requirements, remain major issues for the region.

The future labour forces of the world’s most populous countries will likely include a more balanced make-up of industry and service-based sectors.

Å india’s economy remains driven by the service sector, but investments in infrastructure and agriculture productivity systems are expected to lift the country’s share of manufacturing output over the coming decade.

Å china’s five-year plan includes investments to help the service sector surpass the industry sector as the largest contributor to GDP by 2015 as it strives to move up the economic value-chain. The government will continue proactive policies to boost employment in 2012; jobs for new college graduates and encouraging small business creation are key priorities.

Sources: IHS Global Insight; Global Employment Trends, ILO, (1/11); ANZ Australian Economic Toolbox (11/10); Manpower Employment Outlook Survey (6/11); Manpower Talent Shortage Survey (5/11) India Ministry and Labour & Employment (9/10); Japan Statistics Bureau (4/11); India needs more reforms to attain balanced growth: economist—China Economic.net (5/11); China may develop service economy in 5 years—People’s Daily (10/10); Talent Shortage Adds to Growth Strains—Financial Times (5/11); Quake Exposes Skill Shortages—stuff.co.nz (3/11); New Zealand Faces Crisis in Skills Shortage—Scoop News (4/11); Australian Mining Sector Struggles with Skills Shortage– The Emigration Group Ltd. (5/11); ManpowerGroup’s Global Hiring Confidence Index for Q1 2012 Reveals Employers in 30 of 41 Countries and Territories Surveyed Set to Slow Hiring from Fourth Quarter 2011. (12/11)

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difficulty filling jobs by country (% of employers)

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Skills shortages

China and India

Higher salaries

industry outlook


legislative update

country summaries

conclusion

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12

apac workers can expect higher salaries

Continued strong demand for talent drove employee turnover rates up to 14.1% across APAC in 2011. Wage growth over the past year was a full 6% within the region—and this will be repeated in 2012 with India, Indonesia and China leading the growth trend.

Å Analysts predict 12-15% annual wage growth over the next five years in India. Engineering, auto, and energy sectors expect to see the strongest wage hikes.

Å In 2011, 90% of employers in China increased salaries—one-fifth did so by more than 10 per cent. In 2012, 84% intend to increase salaries—and this time one-third will do so by more than 10 per cent.

Å Dong Tao, an economist with Credit Suisse, believes China will reach the “Lewisian turning point” by 2014, a critical moment in a developing economy when its surplus labour supply dries up, prompting hikes in wages, prices, and inflation.

Å Given current skill shortages in Singapore, employers are placing more emphasis on financial rewards. Average salary increases for existing employees will be around 4% (higher for business-critical skills), and 15–20% for new hires.

Å Wage growth in the mature Japanese and Australian markets will lag the region.

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wage growth 2011-2012

introduction





Skills shortages

China and India

Higher salaries

industry outlook


legislative update

country summaries

conclusion

about us



13

Industry Outlook

introduction



industry outlook

Biotech, construction & energy


legislative update

country summaries

conclusion

about us

13

/ Industry Outlook


14

biotech, construction and energy among the growth industries

Å Finance is projected to grow across the region, with China expected to see more than 8% growth. Forecasters predict a 6-8% increase in regional sector employment by 2030, with the exception of Australia, which will see significant industry growth without a corresponding growth in employment.

Å Construction is up in response to natural disasters across the region.

Å China and India are two of the so-called “Pharmerging” markets, or emerging economies where pharmaceutical giants are planning expansion.

*Outlined cells indicate sector hubs.

industry growth projections for 2012 australia china india Japan new Zealand

Agriculture X 2.7% X 3.6% X 1.6%

Auto/ Auto Parts Manufacturing X 14.3% X 20%

Biotechnology X10.3%

Construction X 5.1% X 9.4% X 9.0%

Creative Industries / Gaming Y 8.0% X

Finance* X 5.1% X 8.2% X 7.0% X 1.5% X 4.1%

Healthcare X 4.1% X 7.5% X

Information/Communication Technology X X 10.3% X 2.86%

Iron and/or Steel Manufacturing Y 14.9% X 8.1%

Manufacturing* Y X

Mining X 36.7% X

Online Education X 10.6%

Online Shopping X 10.2%

Pharmaceuticals* X 20% X 10-20% X

Trade (Retail) X 2.5% X 7.0% X 7.5% X 2.0%

Transportation & Utilities* X 4.1% X 8.3%

Uninterruptable Power Supplies 20% in all Asia. Growth drivers: China, India

Å ICT is growing across APAC, but is continuing to boom in India. China is also expected to perform well in this sector, as newly-educated IT professionals enter the workforce.

Å Japan’s nuclear incident is part of an overall gear shift for the Energy sector. Uninterruptable Power Supplies is projected to grow 20% throughout the region, as businesses and governments seek to avoid supply-chain breakdown.

Å Manufacturing has a mixed outlook. India is anticipating its most significant growth to come in this sector, while China expects to see its overall manufacturing decrease.

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industry outlook

Biotech, construction & energy


legislative update

country summaries

conclusion

about us

/ Industry Outlook


15

Growth Industries by Country

introduction



industry outlook


Australia

China

Hong Kong

India

Japan

New Zealand

legislative update

country summaries

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/ Growth Industries by Country


16

australia

growth industries

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Online shoppingBiotechnologyOnlineeducation

Motor vehiclemanufacturing

Diamond andgemstone mining

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17

chemicals and refining

Refining industries are booming, principally along the eastern seaboard from where products can either be shipped within China to the booming coastal industrial areas or abroad. Cheap labour, a skilled workforce, and large markets nearby have been the principal attractions.

china

energy

Huge contracts have been generated from the project to build a pipeline network across China linking the energy fields in central Asia with the east coast, the development of fuel retail networks, and the emergence of a market for liquefied natural gas in China.

motor vehicle manufacturing

China is rapidly developing a reputation for high-tech industries. The capital, Beijing, is usually regarded as the nation’s high-tech hub, although other regions, such as Shanghai, are also heavily involved.

manufacturing

Both light and heavy manufacturing continue to boom. Cheap labour, a skilled workforce, and large markets have been the principal attractions for investments in virtually every sector, from paper to chemicals or from machinery manufacturing to semiconductors.

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18

banking and finance

At the end of 2010, the Hong Kong Exchanges and Clearing Limited was the third largest in Asia, after Tokyo Stock Exchange Group, Inc. and Shanghai Stock Exchange.

Hong Kong is Asia’s leading financial services center. Foreign investment into the sector remains strong, with many companies seeing Hong Kong as a useful launch pad for Chinese operations.

hong kong

logistics and transport

Hong Kong has long served as Asia’s transport and logistics hub and has the world’s third-busiest container port.

The Hong Kong International Airport ranked the world’s fourth-busiest international passenger airport and had one of the most active air cargo operations worldwide.

producer and professional services

The presence of producer and professional services has shaped Hong Kong’s transformation from a manufacturing center into a regional services hub.

Producer services include import and export, freight transport, trade financing, and insurance services on goods.

Professional services cover legal, accounting, auditing, architecture and engineering activities, scientific research and development, management consultancy activities, information technology related services, etc.

tourism

Tourism remains one of Hong Kong’s pillar sectors, boosted by Beijing’s Individual Visit Scheme, which has relaxed restrictions on travel to Hong Kong by mainlanders since 2003; the opening of Hong Kong Disneyland in 2005; and the opening of Hong Kong Wetland Park and ”Ngong Ping 360” in 2006.

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industry outlook


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China

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New Zealand

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19

automotive

By 2016 the size of the Indian automobile industry is expected to grow by 13%, to reach USD 120-159 billion. Passenger vehicle sales and production is expected to grow by 14 to 16% over 2011 to 2021, reaching over 9 to 10 million units annually. The auto component industry has shown a consistent growth rate of about 20% since 2000 and the rate is expected to remain consistent until 2015. The Indian auto industry is projected to be short 300,000 skilled personnel by 2020 across functions including R&D and manufacturing. According to industry experts, India is poised to become the third largest car market by 2020 after the US and China.

india

energy

India’s emerging green jobs sector holds out the promise of 10.5 million jobs by 2020 as investments in energy efficiency and renewable energy technologies soar. The wind sector in India is predicted to be worth USD 13.1 billion in 2020 and could create between 150,000 to 250,000 jobs. The solar industry, predicted to be worth USD 7.0 billion, could generate between 117,000 to 235,000 jobs by 2020 and small hydro and biomass sectors are expected to be worth USD 5.9 billion and USD 7.0 billion respectively in 2020.

financial services

The Indian banking industry is poised to mark USD 28.5 billion by 2025 from the asset size of USD 1.4 billion in 2010. Banks are venturing into new avenues such as wealth management, private banking, doorstep banking, credit cards, investment advisory services and various financial products. India’s insurance industry is projected to reach USD 350-400 billion in terms of premium income by 2020.

healthcare

The Indian healthcare sector is expected to reach USD 75 billion in 2012 and USD 238.8 billion by 2020.

it

The Indian market for IT products and services is expected to consolidate its growth achieved in 2010 and increase from USD 19.7 billion in 2010 to USD 41.2 billion by 2015. India is poised to become the hub for Engineering Process Outsourcing (EPO), with its market size estimated to touch USD 30 billion annually by 2015. The number of tech jobs continues to soar, with the three largest IT services companies planning to add thousands of workers. The Indian Staffing Federation’s eight key members predicted that the demand for contract staffing by tech providers will increase by up to 45% between 2012 and 2014.

pharma/biotech/ r&d

The Pharmaceuticals industry is projected to grow at a CAGR of 10 to 20% to reach a value between USD 50 and 74 billion by 2020 from the 2009 levels of USD 12.6 billion. The Indian diagnostic market is projected to grow at a CAGR of more than 22% between 2010 and 2012. It has been estimated that the biotech industry is poised to target a total turnover of USD 8.6 billion by the end of 2015 (from USD 2.9 in 2010) which would be possible if there will be a growth rate of about 30% year-on-year.

India is expected to be a top 10 global pharmaceuticals market in terms of sales by 2020.

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20

manufacturing

Heavy manufacturing, led by the motor vehicles sector, posted better than expected growth in Q3 2011, reports the Tankan economicsurvey. The disaster recovery effort has also spurred growth in the steel manufacturing industry.

Energy Power shortages are spurring efforts to:Å use energy more efficientlyÅ introduce energy-saving

technology; and Å make greater use of

renewables

Recent legislation secured purchase of power generated by solar panels, which is expected to support a rapid expansion of industry-use and utility-use solar systems.

Japan

Å Hydroelectric and biomass power will also benefit from these subsidies.

Å The government’s focus on “green innovation” is estimated to create 1.5 million jobs.

construction

As projects to rebuild ports, repair roads and construct new housing proceed at breakneck pace, major construction companies have been working on plans to expand the number of employees they have in the Tohoku region by 10% to 20%. The impact of reconstruction spending will nevertheless be temporary.

automotive

Analysts say that car sales momentum at the end of 2011 is likely to carry over into 2012 following a government extension of tax incentives for purchases of fuel-efficient cars and a new scheme to subsidize the purchase of clean vehicles. JAMA forecasts that the total market for vehicles in Japan in 2012 will increase 19% from 2011.

technology

Product vendors have recently been showing interest in green IT relating to the healthcare industry. HIT software licensing is expected to increase 2.86% CAGR through 2016.

Rapid growth of smartphone sales are driving demand for NAND, image sensors, LCD panels and other components this year.

tourism

Part of Japan’s growth strategy is to increase tourism from less than 10 million annual visitors now to 25 million by 2020 — in part by easing visa regulations for Chinese tourists and by increasing ‘medical tourism. This is expected to boost Japan and many of its regions, creating more than half a million jobs.

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21

biotechnology/ agricultural research

New Zealand’s business promotion authority estimates that the country’s biotech industry contributes around USD 237-316M per year to the economy primarily through agricultural research. New Zealand’s biotechnology industry specialises in fruit, forestry, forage, and large animal research. The industry also participates in research of human healthcare technologies such as drug discoveries and natural remedies from the country’s extensive base of exotic flora and fauna.

new Zealand

tourism

The country’s tourism sector accounts for 8-9% of GDP annually, and is a crucial foreign-exchange earner. New Zealand’s diverse landscapes continue to appeal strongly to adventure and eco-tourists. The global success of The Lord of the Rings epic and anticipated success of the pending Hobbit films, all filmed in New Zealand, will continue to boost the sector. Weighing on the industry will be the Christchurch earthquakes, as it takes a significant amount of time to lure tourists back after major disasters.

agriculture

Agriculture will continue to play a crucial role for the economy with the country, accounting for one-third of world trade in dairy products as it exports 90% of annual dairy production. Two developments have improved New Zealand’s position. First, the creation of the Fonterra cooperative, which merged the consolidated dairy-processing industry with the export marketing agency has given dairy producers an

outlet of global size. Second, the expansion into areas such as wine production has added high-value products to New Zealand’s export list. Output from New Zealand’s wine industry has exploded in 11 years with wine exports reaching USD 751.2 in 2010 compared with just USD 66.3 in 1999. The potential for organic agricultural production and exports is also high.

light manufacturing

Although the overall manufacturing base remains weak, some small New Zealand companies have been very successful with niche hi-tech products in areas such as electronics, “green” technologies, aviation and boat building.

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industry outlook


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China

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New Zealand

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country summaries

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22

Legislative Update

introduction



industry outlook


legislative update

Governments take steps to combat talent shortages

country summaries

conclusion

about us

22

/ Legislative Update


23

governments take steps to combat talent shortages

china: The 2011 Draft of Foreigners’ Participation provides that foreign employees must participate in social insurance. Foreigners contribution to all five social insurance schemes, (pension, medical insurance, work injury insurance, unemployment insurance and maternity insurance) is not specified, and will vary by region as local official set guidelines. The manufacturing hub of Shenzhen has hiked the minimum monthly wage by 13.6% starting February 2012. The move raises minimum monthly wage for full-time workers to USD 240, the country’s highest. The government will soon start evaluating college majors by their employment rates, downsizing or cutting those studies in which the employment rate for graduates falls below 60% for two consecutive years.

australia: As skilled labour shortages grow, especially in the mining industry, the Australian government is seeking a 60% increase in skilled immigrants under the Regional Sponsored Migration Scheme, where employers can sponsor a skilled migrant on the condition they live and work in the area for at least two years. The Department of Immigration and Citizenship expects to significantly reduce the time taken to process a visa application and improve the settlement and employment prospects of its skilled migrants. The government has also set a target for 40% of the population to complete tertiary education by 2020, with 20% of enrolments from economically disadvantaged persons.

hong kong: The Hong Kong government recently approved legislation to establish minimum wage between USD 3.60 and 3.73 in the first half of 2011.

Japan: The government has proposed legislation to limit the use of temporary employees to 26 pre-defined skill categories, with restrictions primarily in the manufacturing sector. The regulation would be implemented in three steps by 2014.

taiwan: Employers’ associations and unions have reached an agreement on paid leave for family care following natural disasters.

india: India is currently proposing legislation to provide contract workers with the same pay and benefits as regular employees. The Indian government recently repealed the visa limit for highly skilled/professional foreign nationals.

singapore: January 2012 legislation will require employers to offer retiring staff a continuation or re-employment option in response to aging population trends.

malaysia: Employers‘ retirement contribution increase to 13% is in effect from January 2012.

thailand: A new minimum wage of USD 9.85 per day will be implemented on April 1, 2012, but is being opposed by business federations.

Sources: Hewitt Associates Global Legislative Developments (July 2010 - May 2011); IHS Global Insight country intelligence reports (Feb-May 2011); Global Employment Law Web Portal; China Briefing (3/11); Salans News (06/11); Asia Labor & Employment Client Service Group (Oct. 4, 2011); New Straits Times (2/9/12); Xinhau News Agency (12/11)

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Governments take steps to combat talent shortages

country summaries

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24

Country Summaries

introduction



industry outlook


legislative update

country summaries

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Singapore

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/ Country Summaries


25

australia: only a short respite from skills shortages

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industry outlook


legislative update

country summaries

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Singapore

conclusion

about us

/ Country Summaries

In spite of a growing local economy, the willingness of Australian businesses to build capacity continues to be dampened by instability and economic volatility in Europe, the Middle East, and the United States.

accounting and finance

The impact of the international debt crisis has directly impacted this industry. Jobs continue to be shed as companies consolidate, move back-office processes offshore to drive down costs. This trend will continue until the middle of this year when it is expected to stabilise.

banking and financial services

Banks are shredding numbers from their finance and IT

departments with the back-office being worst hit. There is still strong hiring activity in areas such as credit, wealth management, financial planning, private and corporate banking. Some areas of corporate finance remain steady and continue to offer opportunities.

information technology

Roles that are in demand include application testing, storage and data centre management. Banks continue to create much of the demand for IT roles despite moving many development projects offsite. This is largely because much of the strategy, architecture, maintenance and program development work remains in Australia.

engineering

mining: As the Australian mining industry continues to boom, employers are looking for people who have core engineering skills as well as on-site mining experience. There is ongoing strong demand for workers across every part of the mining sector.

civil engineering and infrastructure: Increasing population growth in Australian capitals and satellite cities is putting pressure on public infrastructure. Funding these basic public services will remain a key priority for government.

construction: The construction jobs market has steadily declined with

the commercial fit out and refurbishment sub sector particularly struggling. It is common to find businesses that employed 30 staff two years ago to have cut back to less than ten. Employers are now relying on contractors to meet short-term peaks.

architecture: There is an emerging skills gap in this sector with many experienced architects not trained to use REVIT, the dominant 3D modelling and design software. As a result, graduates with a high degree of skill in this and similar software, are being increasingly sought after.

mechanical & electrical: The overall skill shortage in M&E means that this sector will continue to be relatively buoyant for 2012.

Industries associated with the mining and resources boom will continue to grow rapidly during the year.

scientific

A significant shift toward the use of temporary and contract staff has been one of the standout changes to the scientific industry. Demand for temporary or contract staff continues to climb across all industries. Hiring levels for permanent staff have remained relatively stable throughout 2011. However there are marked differences state by state. A significant demand gap has opened up between Western Australia/South Australia and the Eastern states.


26

Although the China recruitment outlook is positive, there is an overall slowdown from last year. The National Peoples’ Congress (NPC) has set a 7.5% growth target and highlighted seven ‘Strategic Emerging Industries’ where we expect to see an upswing in recruitment over the coming year, namely: Clean Energy, Next Generation IT, Biotech, High End Equipment Manufacturing, Alternative Energy and New Energy Vehicles.

general industrial and manufacturing

Demand for sales talent is now increasing compared to marketing roles particularly at junior level. Senior technical

china: higher order skills and experience in demand

roles are ‘hot’ this year with Chinese companies increasingly trying to attract more multinational talent. The government extension of policies on rebates on electronics and appliances should continue to support increased sales, resulting in more companies establishing manufacturing inland in Central and Western China.

automotive

The automotive segment continues to grow, but much more slowly than 2011. JV companies are producing vehicles to sell under local Chinese brands which compete with domestic manufacturers. New MNC automotive parts companies are establishing

plants in tier two cities like Chengdu, with increased hiring uptake expected this year end into 2013.

chemical

Strategic and project roles are in demand in this sector and supply chain, R&D, strategic marketing and sales roles remain highly sought after. Key specialist skill sets and niche knowledge in the sector will still be targeted.

healthcare and life science

Hospital reforms and increased insurance and medical services will provide a challenging environment as the local pharmaceutical and medical device sectors grow and prices are expected

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China

Hong Kong

India

Indonesia

Japan

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New Zealand

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/ Country Summaries

to drop. Biotechnology is also one of the NPC’s key focus sectors and is expected to continue to recruit aggressively this year.


The global economic uncertainty and ensuing controls have driven down overall recruitment, especially in foreign firms, however some job profiles are experiencing an upturn, including risk functions which are in demand from both local and MNC banks.

consumer

The overall trend is encouraging with store operations, and sales and marketing roles being most in

demand. Enhanced spending capability, particularly in the luxury goods sector, have created high levels of demand for talented sales professionals with strong contact networks and a track record of excellence in business development.


IT recruitment is experiencing strong growth with increasing numbers of MNCs relocating their R&D centres taking advantage of China’s relatively lower labour cost and skilled local talent. Roles which are in demand this year include first line developers, testers, architects, project managers and also strategic and management level roles.


27

The return of market confidence in 2010 has helped to stir up the local job market in the past two years. However the concerns brought by the Euro zone crisis have given employers second thoughts at the start of 2012, about engaging in new hiring. Companies are elongating the decision making processes and choosing to defer new hiring to later parts of the year as they watch to see the true extent of the crisis and its impact on the global economy. The hesitation of new hiring is reflected more in the financial industry and companies within the B2B sectors. However, the war

hong kong: cautious hiring prevails

for talent remains strong in the retail sector. Overall, unlike the pre-global financial crisis, companies in general are not offering “mega” compensation packages to attract, which makes the talent attraction challenging for employers.


With financial instability sweeping the world, international banks are the worst hit in the local job market. However, mainland Chinese financial institutions remain as the driving engine in expansion. With new branches opening in the territory, relationship

managers with proven track records are in high demand. Unlike a few years ago, more banking professionals are now creating new career horizons with Chinese banks. Despite this global turbulence some financial services disciplines still remain robust and we expect to see buoyancy in insurance, wealth management and private banking segments creating opportunities across the sales and marketing disciplines. The tightening of regulatory requirements will also see a need for compliance professionals with both external and internal audit skills. Hong Kong is still largely seen as the Asian

trading hub, where there is a need for a variety of trade support roles and client services disciplines.


The rapid rate of technological change and greater demands in bottom line cost savings continues to push businesses to place a huge focus on IT enablement. As such the market for IT developers with strong industry and domain knowledge prevails. Despite the 2011 crisis where many projects in the banking and financial services sector were put on hold, skilled IT professionals with two to five years experience are

still in high demand within the Hong Kong market. The substantial reduction in student enrolment taking up IT in local universities in recent years has created a shortage of home-grown IT professionals in the market. This has in turn created wage pressures for companies looking to engage mid career IT talent. Another noticeable trend is the resurgence in the use of contract IT professionals as an alternative to address the ad-hoc requirements as well as to minimize the FTE growth. UNIX and network administration being areas of high deployment of this labour type.

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Singapore

conclusion

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28

Over the next 10 to 20 years, the already large portion of the population that is of working-age (62% in 2005) will continue to expand. This means India will likely add some 250 million workers to the labour pool over the 20 years to 2025.

There are nearly 30 million young people putting themselves through extra education to access better jobs, while the number of

india: huge potential for a young, educated workforce

young people in secondary and tertiary education is at least 55 million.

Å The Indian economy projects it will create 87.37 million new jobs by 2015, according to a report by the Associated Chambers of Commerce & Industry (Assocham).

Å The most significant growth will come from the manufacturing sector, which

will add 32% (27.88 million) of the new jobs. Trade will be next with 24.24 million jobs, followed by construction with 15.13 million. Tourism-related employment, information technology (IT) and IT-enabled services (ITeS), and financial services will also grow.

Å In the longer term, India is aiming to create 100 million jobs in the manufacturing sector by 2020.

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China

Hong Kong

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/ Country Summaries


29

The growth focus in Indonesia has created challenges in talent management across most industries – specifically how to recruit, retain and develop talent in a country anecdotally labelled as “the missing BRIC.”


The banking sector has both broadened and deepened and interest rates continue to sink. These factors have combined to boost the already growing demand for financial services, from microcredit to mezzanine finance.

consumer goods

As the FMCG market in Indonesia is becoming more appealing, more foreign

indonesia

direct investment is finding its way to the country. It is clear that more products will be produced and pushed to market which is creating demand for marketing and sales professionals, coupled with a need for technical skill sets across manufacturing and supply chain management.


Improvements in Indonesia’s telecoms and ICT infrastructure are expected to drive long-term growth in the Indonesian IT services market. Commercial data centres are being built, linked to growing rollout by public sector and commercial organisations of e-government or

e-commerce services. However, most opportunities are still in fundamental service areas, with demand for a mixture of employment types, from permanent through to contract and temporary professionals.

telecommunications

The growth of the telecommunications industry this year is estimated to range between 8 to 9%. The main driving force being competition by five major carriers of the 10 operators who hold an estimated 90% market share of the telecommunication industry in Indonesia. The telecommunication industry still requires a lot of specialised talent due to strong growth in line with the

expansion hence skill sets such as RF Engineers and other technical services will continue to be highly prized.

pharmaceutical

Despite the country possessing huge manufacturing capabilities, the lack of R&D within local companies could affect the market, especially if IPR regulations are tightened, requiring all drugs to be originated in Indonesia. Potentially this is bad news for multinational companies but it could potentially reduce costs in the long term for both the manufacturer and the consumer. Resultantly the need for R&D talent will surge as well as that for specialist chemical manufacturing expertise.

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China

Hong Kong

India

Indonesia

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New Zealand

Singapore

conclusion

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/ Country Summaries

energy

Energy consumption in Indonesia has been increasing rapidly, to meet the growing demands among various sectors, in particular the transportation and manufacturing sector, who boast the highest consumption levels of all industries. Coal production is set to surge in 2012 as coal miners bolster their businesses and several new mines commence production. Indonesia’s production of thermal and coking coal is forecast to hit 380 million tons in 2012, up 5.5% on this year’s estimate, which will create demand for all level of mining engineers, health and safety and environmental specialists.


30

Japan offers a highly skilled and educated workforce, with particular strengths in engineering and sciences. However, Japan is a candidate-short market, and as a result, there has been a necessary increase in the use of temporary and part-time workers.

Japan: talent shortages biting hard in some sectors

Significant shortages can be found in the following areas:

Å The volume of claims stemming from the natural disaster has strained insurers’ workforces, leading to a sharp increase in the need for skilled insurance professionals, such as claims adjusters and call centre representatives.

Å Professionals adept in business development are also in demand.

Å Reconstructions efforts have caused a boom in construction and mining.

According to the Robert Walters Asia Job Index:

Å Overall job advertisements increased by a strong 35% in Q3 2011.

Å Demand for bilingual candidates increased, particularly in administration/secretarial roles, as did general demand for sales and business development professionals.

Å Demand for medical services increased by 92%, due to changes in pharmaceutical regulation and the launch of new medical products.

The government, battling to revive its economy, has pledged to create 5 million jobs through a 10-year growth strategy, which centres on green technology, health care, tourism and closer links with the rest of Asia.

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31

Talent scarcity remains an issue the economy has to contend with. Key initiatives to address this area are in the areas of human capital development, developing a conducive and competitive business environment and establishing the required physical infrastructure for a modern economy.


Given the importance of having appropriate risk management practices to the financial health of companies, middle to senior levels of auditors, accountants, and credit managers are in continually sought after. There is also a continued demand for business partners who can value add in terms of providing sound business

malaysia

advice and acumen due to stricter internal controls via expense management and push for profitability.


The development of talent for the financial sector continues to present considerable challenges for the industry as demand continues to exceed supply. In the medium to longer term, this can increase pressure on wages, and could undermine the ability of financial institutions to maintain competitive positions and effectively control risks.

engineering and technical

Capital investments in the resource-based industries and new growth areas

encompassing renewable energy, oil and gas, utilities and advanced electrical and electronic products provides opportunities for continued demand for engineers and technical workforce. The higher demand for natural gas from Japan provided opportunities of employment at processing plants and facilities in Peninsula Malaysia.

human resources

As more companies are focusing on hiring the right talent to compete within their industry and markets, there is an unabated demand for Human Resources professionals with a focus on areas such as compensation & benefits, learning & development and talent acquisition and retention.


Expansion into rural areas boosted the higher broadband penetration rate due to provision of broadband facilities and this resulted in continued hiring demand for ICT job positions. In promoting e-payments as a viable alternative to paper-based payment, IT professionals in the middle level space continued to be in demand. Contracting is expected to pick up in the IT industry to meet the development of offerings on mobile banking, payment services via a multi-bank and mobile network-neutral infrastructure.

procurement, supply chain and logistics

With organizations placing a higher importance in

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conclusion

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/ Country Summaries

improving processes and productivity, mid and senior management positions such as project managers, operations directors and supply/demand/inventory planners are in demand.

sales and marketing

Sales talent with strong performance track records are still sought after, as companies compete for bigger and wider share of the markets. Commission based packages are favoured for sales workforce while brand managers, marketing directors, channel managers continue to be in demand as companies extend marketing and advertising campaigns beyond conventional and traditional advertising, moving into digital and online marketing.


32

With slower than expected economic performance, sliding consumer confidence and a complex international picture of patchy recovery, New Zealand businesses are continuing to take a cautious approach to building capacity. However, a significant expected boost from the Canterbury post earthquake recovery, as well as ongoing strength in several key sectors, is seeing some short-term growth and considerable expected demand over the coming years.


As in most OECD countries, the New Zealand accounting and finance sector is

new Zealand: growth slow but steady

continuing to manage the fallout from the international debt crisis. After a number of years of restructuring, and the influence of a considerable change in consumer debt patterns and business investment, the industry is yet to stabilise, with jobs still to be shed. The performance of the sector in Australia, where many of New Zealand’s major financial institutions and large enterprises are headquartered, also continues to restrict hiring intentions.


The IT sector has returned strongly to growth, outperforming most other industries outside

the agri-business sector. Convergence in smart devices, consumerism, hi-tech manufacturing, and bioinformatics and strong swelling in the gaming and digital content domain is seeing the IT sector enhancing its credentials dramatically both domestically and internationally. Areas of particularly critical scarcity include programming and development disciplines.

engineering

The Canterbury recovery is likely to exert the biggest influence over the demand for experienced engineering sector candidates over the next 12 – 24 months.

civil engineering and infrastructure: In addition to a significant investment in the redevelopment of Christchurch’s infrastructure, both local and central government investment is planned in major transport initiatives, particularly in Wellington and Auckland. A resurgent housing market will also increase demand from the private sector.

construction: Christchurch will be the focus of considerable demand for the construction sector once the rebuild gains momentum. This is predicted to occur by the end of 2012, with over $20 billion of investment to be made into the rebuilding of the city.

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industry outlook


legislative update

country summaries

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Singapore

conclusion

about us

/ Country Summaries

mining: While the Australian industry has been the major attraction for skilled local candidates, a major focus on mineral resources development on the part of the National Government could significantly change the local sector in coming years.

mechanical and electrical: Despite softness in the wider market, the hi-tech manufacturing field, in particular, is going from strength to strength, and will continue to see strong demand for expert staff across a variety of disciplines.


33

Although Singapore’s economy grew 4.9% in 2011, the government has maintained a growth forecast of between 1–3% for 2012. The Singapore employment rate is relatively strong with a total employment growth of 122,600 in the whole of 2011 or 3.9% higher as compared to 2010.


Middle level positions such as senior accountants, auditors and credit managers are in demand due to stricter internal controls via expense management and push for profitability. This increase in controls and regulations has also created strong appetite for professionals in the compliance domain.

singapore


Banks are focusing on business critical positions especially in the area of risk and compliance as regulatory requirements continue to become more stringent. While the investment banking community continues to be somewhat unpredictable, there seems to be a refocus on consumer wealth-based business lines management professionals in particular.

engineering and technical

As the Singapore government continues to support the construction sector via housing projects and major public works, the construction industry is expected to continue its buoyancy throughout

2012 leading to a strong demand for all categories of construction engineers.

healthcare and life sciences

With Singapore government’s initiative in building Singapore as a medical and life sciences hub, we see an increase in the hiring of medical and life science professionals across the board. Particular emphasis will be placed on professionals with strong expertise in pharmaceutical, regulatory affairs, research and development, quality assurance and technical sales.

human resources

Similar to other functional roles, human resource professionals are now expected to play a business

partner role. This places attention on HR professionals who have shifted their expertise demonstrably from transactional to strategic.


Contracting is expected to pick up in the IT industry where roles such as project managers, technical architects, infrastructure managers and software specialists will be in demand as companies look to inject skills for complex projects without the long-term cost burden of a permanent hire.

procurement, supply chain and logistics

Talent with specific focus in categories such as marketing services, technology, workforce management and in direct categories

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across all commodities will be highly prized. Expect to see companies investing in supply chain optimisation in a bid to run with maximum efficiency which will see demand for professionals such as project managers, operations directors and supply/demand/inventory planners and those with Lean methodology expertise.

sales and marketing

Demand still continues in skill sets such as account management, social media optimisation, market/competitor analysis and corporate communications. This is due to organisations grappling with changing technology and the borderless nature of their competitive landscape.


34

The Asia-Pacific region constitutes an incredible 40% of the world’s population. It is now at the centre of global economic growth, with a strong economic outlook and employment market. However, its ongoing prosperity and development will depend somewhat on specific and deliberate responses to growing demand for skills, experience and flexible labour across the region.

The growth industries and changing make up of rapidly developing economies in the area are creating skills shortages amid ageing workforces, as well as increasing pressure to improve the productivity of existing resources.

conclusion

Labour force participation is projected to dramatically decrease in some markets across the region, including Japan and New Zealand, while the young, educated population of India presents huge potential. As with other markets around the world, the focus must be on equipping the workforce with the right skills, and this presents significant challenges for developing countries with large populations.

In light of these trends, there are three key issues that employers across the region should consider for their own workforce strategies.

up-skilling and training

The largest labour markets in the region are largely unskilled, while those markets with plentiful talent are facing the reality of ageing and declining workforces. Investing time and money to build a reliable ‘talent pipeline’, particularly for higher level technical skills, in the region will ensure productivity issues are limited. Tapping into less experienced talent with high potential will be part of the solution, as will be attracting talent from further afield and ensuring existing talent is provided with adequate up-skilling opportunities.

mobility

Labour shortages and wage pressures will be concentrated in particular markets. New strategies to attract skilled workers from other regions will be needed, particularly on a temporary basis, as will the necessary HR support to process a greater volume of visa and temporary work contracts across geographic borders.

flexibility

Considering new ways to deploy talent and to structure project work will be necessary—finding full-time, permanent staff across the region may not be as easy as it once was. Attracting a greater share of female, retired and free agent workers will be more critical as skill shortages begin to bite.

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industry outlook


legislative update

country summaries

conclusion

about us

/ Conclusion

A KElly SErvICES rEPort

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asian talent market update 2012

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falling dependency ratio

xinhau news agency

stricter internal controls

apac economic outlook

single largest pool

employment holds steady

strong economic outlook