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Quarterly Market Report Global Contingent Workforce 1 st Quarter 2013

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Page 1: Global Contingent Workforce - Global Workforce Insights€¦ · –Asia Pacific Table of Contents 1/15/2016 ManpowerGroup Proprietary & Confidential 2 . ... not be interpreted as

Quarterly Market Report Global Contingent Workforce

1st Quarter 2013

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• Executive summary

• Overview of global trends

• Regional highlights

• Detailed country analysis

– The Americas

– Europe, Middle East, and Africa

– Asia Pacific

Table of Contents

1/15/2016 ManpowerGroup Proprietary & Confidential 2

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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.

1/15/2016 ManpowerGroup Proprietary & Confidential 3

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EXECUTIVE SUMMARY

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Q1’13 Global Trends Overview

Global The Americas Europe, Middle East, and Africa Asia Pacific

Labor Regulations Increasing

Healthcare reform in the US and

increased restrictions of

outsourced and contingent

workers in LATAM labor laws

Enforcement of AWR and other labor

regulation is on the rise across the EU,

and many new restrictions have been

enacted such as the new regulations

effective this November in Germany

Increasing parity requirements,

O/T restrictions, tiered employer

taxes, and pay computation alter

engagement options and

opportunity.

Contingent Workforce

Utilization Steady

Use of contingent workers

increased less than 1% in

North America, as opposed to

over 2% in Central and South

America

Use of contingent workers increased

by roughly 1%, with the EU averaging

an increase of 2.26%

Use of contingent workers did

not increase on average,

however Australia, New

Zealand, Malaysia, and

Singapore increase over 2%

Technology Capability Steady

Geographic expansion of

capability has slowed, with Brazil

and Costa Rica noted as key

focus markets

Geographic expansion of capability has

slowed, with France, Russia, and Africa

noted as key focus markets

Geographic expansion of

capability has continued, with

China, Japan and Malaysia

noted as key focus markets

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

emerging markets

MSP Adoption Increasing

Increased in LATAM, particularly

in Argentina, Brazil, Costa-Rica,

and Mexico

Increased in Northern & Southern

Europe, particularly in Belgium,

Germany, and France ,

Adoption driven by regional

expansion, modifications are

critical, particularly in countries

like Japan and Malaysia.

Workforce Planning

Impact Challenging

Auditing supplier compliance

and hiring process, is critical

to local quality and efficiency

of workforce program

Auditing worker classification and

modifying current process and

supply strategies represent largest

opportunity to drive local

performance of workforce programs

In country resources and

partnering with providers who

have existing local operations

is always most efficient, and

often legally required

1/15/2016 ManpowerGroup Proprietary & Confidential 5

Source: TAPFIN 2013 Contingent Workforce Index

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The Talent Gap is Becoming the Worker

Gap

1/15/2016 ManpowerGroup Proprietary & Confidential 6

Source: TAPFIN 2013 Contingent Workforce Index

Increased

Reliance on

Aging

Workers

Decreased

Availability of

Emerging

Workers

Skill gaps and talent shortages Aging workforce

Regional disparity in talent Lack of awareness re: contingent benefits

Misalignment of emerging workers (by skill, by objectives, and by geography

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Workforce Availability

1/15/2016 ManpowerGroup Proprietary & Confidential 7

Source: TAPFIN 2013 Contingent Workforce Index

Size of the labor force*:

Macau– 25% AD

UAE– 21% AD

Bahrain– 28% AD

Hong Kong– 32% AD

Singapore– 35% AD

USA TE Korea TE

Finland TE

Greece TE

Slovenia TE

Puerto Rico TE

In 2013, South Korea, Hong Kong, and Russia are the leading emerging markets for reduced dependency on aging workers and increased emerging workers…followed

closely by Poland and Macau

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Workforce Cost

Source: TAPFIN 2013 Contingent Workforce Index

Size of the labor force*:

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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

1/15/2016 ManpowerGroup Proprietary & Confidential 9

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ManpowerGroup Proprietary & Confidential

1/15/2016 ManpowerGroup Proprietary & Confidential 10

Argentina

Belgium

Brazil

Bulgaria

China

Costa Rica

Czech Rep.

El Salvador

Estonia

France

Germany

Greece

Honduras

Ireland

Italy

Korea (South)

Lithuania

Luxembourg

Netherlands

New Zealand

Nicaragua

Peru

Poland

Portugal

Reunion

Romania

Serbia

Slovakia

Slovenia

S. Africa

Spain

Switzerland

Turkey

UK

Uruguay

Venezuela

Colombia

Croatia

Hungary

New Caledonia

Thailand

Australia

Canada

Hong Kong

Mexico

Singapore

Austria

Bahrain

Belarus

Bolivia

Chile

Denmark

Dominican Rep.

Ecuador

Finland

Guadeloupe

Parity Regulations Continue to

Increase Globally:

Guatemala

India

Israel

Japan

Kazakhstan

Macau

Malaysia

Monaco

Morocco

Norway

Panama

Paraguay

Philippines

Puerto Rico

Russia

Sweden

Taiwan

Tunisia

UAE

Ukraine

USA

Vietnam

No Parity Required

Just Benefit Parity

Just Pay Parity

Full Pay & Benefit Parity

Source: TAPFIN 2013 Contingent Workforce Index

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REGIONAL HIGHLIGHTS

1/15/2016 ManpowerGroup Proprietary & Confidential 11

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Size of the labor force*:

Canada, Costa Rica, and Chili outperform

the region with substantially lower dependency

on an aging workforce

Bolivia, Honduras, and Guatemala have

higher than average age dependency ratios –

however, that dependency is driven by a high

percentage of their workforce being under the

age of 15

Although these countries have low

tertiary enrollments, the size of their

emerging workforce will be almost equal to

their aging workforce by 2016

Workforce Availability in the Americas

Regionally, the Age Dependency Ratio is 56.5%, over 7% higher than the global average

Source: TAPFIN 2013 Contingent Workforce Index

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Size of the labor force*:

Bahrain, Slovakia, and United Arab

Emirates outperform the region with

substantially lower dependency on an aging

workforce

France, Israel, and Sweden have higher

than average age dependency ratios – with

Israel feeling less impact of an aging workforce

due to a high percentage of their workforce

being under the age of 15

Workforce Availability in EMEA

Regionally, the Age Dependency Ratio is 46.6%, almost 2% lower than the global average

Source: TAPFIN 2013 Contingent Workforce Index

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Hong Kong, Macau, and Singapore

outperform the region with substantially lower

dependency on an aging workforce

Japan, Philippines, and Taiwan have higher

than average age dependency ratios – with

Israel feeling less impact of an aging workforce

due to a high percentage of their workforce

being under the age of 15

Size of the labor force*:

Workforce Availability in APAC

Regionally, the Age Dependency Ratio is 49%, equal to the global average

Source: TAPFIN 2013 Contingent Workforce Index

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THE AMERICAS Detailed Country Analysis

1/15/2016 ManpowerGroup Proprietary & Confidential 15

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Argentina Agriculture 1.2% Industry 23.9% Services 74.3%

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 19.0M

Full-Time Employees 13.5M

Contingent Workers 4.2M

Non-Skilled Contingent

Workers

2.9M

Skilled Contingent Workers 1.3M

Unemployed Workers 1.3M

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 (the

second installment is due for February) local

non-skilled workers continue to protest pay and

working conditions – there have continued to

be strikes and unionized action across

Argentina

– The salary from which income tax is payable

will be increased by 20% from March .

– Inflation has been estimated to be at 25% for

2012 by private economists whereas official

figures suggest it is half of this. Wages are also

increasing.

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,

1/15/2016 ManpowerGroup Proprietary & Confidential 16

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Bolivia Agriculture 36.1% Industry 19.7% Services 44.2%

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 4.4M

Full-Time Employees 2M

Contingent Workers 2M

Non-Skilled Contingent

Workers

1.5M

Skilled Contingent Workers 459K

Unemployed Workers 362K

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%.

1/15/2016 ManpowerGroup Proprietary & Confidential 17

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Brazil Agriculture 17.0% Industry 22.1% Services 60.9%

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 99.8M

Full-Time Employees 73.4M

Contingent Workers 21.7M

Non-Skilled Contingent

Workers

16.3M

Skilled Contingent Workers 5.4M

Unemployed Workers 4.6M

Workforce1

Market2

– Shortage of skilled workers in IT, Engineering,

and Industrial roles continues to impact hiring

and competition for skilled labor.

– Highly educated workers are in such short

supply that they command wage premiums up to

340% of the wage of primary educated workers.

– Government developing unemployment benefit

systems based on savings, which will provide

better incentives to search for and keep jobs.

– Although 1.3 million new jobs were added in

2012, it was the smallest number of new jobs

since 2003.

Activity3

– 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.

– Recent strike threat across industries

including construction, oil, postal workers and

manufacturing.

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.

– Temporary workers are entitled to a severance

package upon termination.

– MSP cannot invoice on behalf of suppliers.

– High Court rules that employers must ensure

that women on temporary contracts can stay in

their jobs during their pregnancy and also be

entitled to five months of maternity leave

– Minimum wage increased in January

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Canada Agriculture 2.4% Industry 21.5% Services 76.5%

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 19.0M

Full-Time Employees 14.9M

Contingent Workers 2.7M

Non-Skilled Contingent

Workers

2M

Skilled Contingent Workers 690K

Unemployed Workers 1.3M

Workforce1

Market2

– Shortage of 1.8 million skilled positions

expected by 2031.

– 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.

– Potential impact in the mining industry from the

Shale oil boom

– Skilled financial professionals in high demand.

– 5 unemployed people per job vacancy.

Activity3

– Current discussion of revisions to

Employment Insurance Act that could impact

onboarding and offboarding processes for

both traditional and non-traditional workers

– Attracting highly skilled Irish. The yearly

quota for Irish Working holiday visas was

filled in less than a week.

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

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Chile Agriculture 11.2% Industry 23.2% Services 65.6%

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 7.7M

Full-Time Employees 5.0M

Contingent Workers 2.2M

Non-Skilled Contingent

Workers

1.6M

Skilled Contingent Workers 522K

Unemployed Workers 469K

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.

– Dockers strike reached new settlement for

pay and benefit increase to both casual and

permanent employees

– Government developing unemployment

benefit systems based on savings, which will

provide better incentives to search for and

keep jobs.

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.

– High demand for foreign workers. Skilled

Spanish workers are migrating to Chile with a

labor shortage , the Chilean government is

considering removing some of the restrictions

on foreign hires.

– Wages have risen an average of 6.5% over the

last year.

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.

– VAT (Value Added Tax) is 19%.

– 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

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Colombia Agriculture 17.9% Industry 20% Services 62.1%

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 18.6M

Full-Time Employees 7.9M

Contingent Workers 8.9M

Non-Skilled Contingent

Workers

7.0M

Skilled Contingent Workers 1.9M

Unemployed Workers 1.8M

Workforce1

Market2

– Despite high unemployment rate, a labor

shortage in the agriculture sector has

impacted productivity and shifted the hiring

focus to migrant workers.

– Government developing unemployment

benefit systems based on savings, which

will provide better incentives to search for

and keep jobs.

– The government is improving institutional

practices and its regulatory environment,

thus promoting higher employment and

employability

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.

– VAT (Value Added Tax) is 15%.

– 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.

– Workers at Colombia’s largest coal mine are

striking over wages.

– Unions are pushing for higher wages despite

a recent increase in the minimum wage of

more than 4%.

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Costa Rica Agriculture 12.3% Industry 22.4% Services 65.3%

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 2.1M

Full-Time Employees 1.4M

Contingent Workers 518K

Non-Skilled Contingent

Workers

383K

Skilled Contingent Workers 135K

Unemployed Workers 212K

Workforce1

Market2

– A labor shortage exists in key categories

including technicians, production operators and

accounting and finance personnel.

– Trade Unions not widely accepted in Costa Rica

although there is a legal right to join.

Activity3

– High inflation and cost of living increases

have minimized access to migrant workers in

Costa Rica.

– Minimum wage increased in January.

Minimum wages change six months.

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.

– VAT (Value Added Tax) is 13%.

– Subcontracting is legal.

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Dominican Republic Agriculture 14.5% Industry 22.9% Services 62.6%

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 4.3M

Full-Time Employees 2.0M

Contingent Workers 1.7M

Non-Skilled Contingent

Workers

1.4M

Skilled Contingent Workers 291K

Unemployed Workers 615K

Workforce1

Market2

– Increased supply of skilled labor in local market.

Frequent occurrence of workforce strikes in non-

skilled worker categories.

– The government is building the technical skills,

work experience, and life skills of 13,000 youth

ages 16-29

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%

– Subcontracting is legal.

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Ecuador Agriculture 28.7% Industry 18.8% Services 52.5%

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 6.0M

Full-Time Employees 3.1M

Contingent Workers 2.6M

Non-Skilled Contingent

Workers

2.3M

Skilled Contingent Workers 284K

Unemployed Workers 301K

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.

– Growing gender gap between men and women

in the workplace.

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.

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El Salvador Agriculture 20.9% Industry 20.7% Services 58.4%

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 2.5M

Full-Time Employees 1.2M

Contingent Workers 1.1M

Non-Skilled Contingent

Workers

808K

Skilled Contingent Workers 255K

Unemployed Workers 175K

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.

– Trade union rights remain excessively restricted

– Youth (15-24) account for a fifth of the

population and a quarter of those who are

economically active.

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.

– There are minimum wages that are required.

– Pay and benefit parity are required.

– Background checking is legal, however, drug

checking is illegal.

– Standard work hours per week are 44 hours.

– VAT (Value Added Tax) is 13%.

– Subcontracting is legal.

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Guatemala Agriculture 38% Industry 18% Services 44%

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 5.3M

Full-Time Employees 2.3M

Contingent Workers 2.8M

Non-Skilled Contingent

Workers

2.3M

Skilled Contingent Workers 497K

Unemployed Workers 215K

Workforce1

Market2

– Low rate of unemployment, and increased

investment in local business operations, has

increased challenge to find skilled labor in key

categories.

– 70% of the population below the age of 30.

– The largest student numbers in Central America

(170,000 students enrolled in ten universities)

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.

– Minimum wage increased by 5% in January.

Legislation4

– Contingent work is legal in Guatemala.

– There are minimum wages that are required.

– Pay and benefit parity is not required.

– Background/drug checking are legal.

– Standard work hours are 8 hours per day and

44 hours per week.

– VAT (Value Added Tax) is 12%.

– Subcontracting is legal.

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Honduras Agriculture 34.6% Industry 22.2% Services 43.2%

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 2.8M

Full-Time Employees 1.3M

Contingent Workers 1.4M

Non-Skilled Contingent

Workers

1.2M

Skilled Contingent Workers 240K

Unemployed Workers 110K

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.

– There are minimum wages that are required.

– Pay and benefit parity are required.

– Background/drug checking are legal.

– Standard work hours are 44 hours per week.

– VAT (Value Added Tax) is 12%.

– Subcontracting is legal.

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Mexico Agriculture 13.1% Industry 25.8% Services 61.1%

Market2

– Despite slowing economic growth, Mexican

workers benefited from accelerating employment

and wage growth, and reduced unemployment.

– 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.

– The Organisation for Economic Co-operation and

Development (OECD) ranked Mexico as the 8th

most-protected employment market in the world.

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 51.4M

Full-Time Employees 32.3M

Contingent Workers 16.8M

Non-Skilled Contingent

Workers

11.6M

Skilled Contingent Workers 5.2M

Unemployed Workers 2.3M

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.

–A New bill passed in November to reform the

Labour Bill in Mexico. The bill contains

measures that would make it easier for firms

to hire and fire workers and shorten labour

disputes. Parts of the bill that sought to make

unions more transparent were cut back

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.

– Severance packages are mandatory by law in

Mexico.

Workforce1

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Nicaragua Agriculture 29.5% Industry 20.3% Services 50.2%

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 2.3M

Full-Time Employees 1.08M

Contingent Workers 1.05M

Non-Skilled Contingent

Workers

838K

Skilled Contingent Workers 209K

Unemployed Workers 143K

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.

– More than1million workers are employed as

contract labour in Nicaragua, principally in

agriculture, construction, hotels and restaurants.

– 70% of the population are under 30. There is a

median age of 23.

Activity3

– Strikes and union activity continue to be

limited by the need for government approval

and 50% approval within the organization.

– Outsourcing has had an enormous impact in

Nicaragua, and led representatives of several

trade union organisations as well as

members of the National Assembly to put

forward a bill aimed at regulating the practice.

– Tripartite agreement for minimum wage

increases in the free zones signed for the

2014-17 period.

Legislation4

– Contingent work is legal in Nicaragua.

– There are minimum wages that are required.

– Pay and benefit parity are required.

– Background/drug checking are legal.

– Standard work hours are 8 hours per day and

48 hours per week.

– VAT (Value Added Tax) is 15%.

– Subcontracting is legal.

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Panama Agriculture 17.9% Industry 19.1% Services 63%

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 1.6M

Full-Time Employees 1.03M

Contingent Workers 498K

Non-Skilled Contingent

Workers

398K

Skilled Contingent Workers 100K

Unemployed Workers 74K

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.

– Employers from Panama report positive fourth-

quarter hiring intentions and job prospects are

strongest in in Central America.

Activity3

– Social and political unrest continue to result

in an unstable workforce environment.

Legislation4

– Contingent work is legal in Panama.

– There are minimum wages that are required.

– Pay and benefit parity is not required.

– Background/drug checking are legal.

– Standard work hours are 8 hours per day and

48 hours per week.

– VAT (Value Added Tax) is 7%.

– Subcontracting is legal.

– Agency workers are paid by agencies that

provide an outsourcing service to the

employer, and cover the corresponding labour

obligations.

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Paraguay Agriculture 26.5% Industry 18.9% Services 54.5%

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 2.9M

Full-Time Employees 1.38M

Contingent Workers 1.35M

Non-Skilled Contingent

Workers

1.11M

Skilled Contingent Workers 244K

Unemployed Workers 202K

Workforce1

Market2

– Union activity is high and influential. Workforce

strikes are legal and common across most

industries.

– The Constitution allows both private and public

sector workers to form and join unions.

However, the procedures for registering a union

are cumbersome, and an inordinate 300 workers

are needed to form an industrial union.

– 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.

– Students protesting over further increases in

cost of education. Only 6% of youth go to

university.

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.

– Standard work hours are 46 hours per week.

– VAT (Value Added Tax) is 12%.

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Peru Agriculture 0.8% Industry 24.4% Services 74.8%

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 13.1M

Full-Time Employees 7.9M

Contingent Workers 4.4M

Non-Skilled Contingent

Workers

3.5M

Skilled Contingent Workers 886K

Unemployed Workers 774K

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.

– VAT (Value Added Tax) is 19%.

– Length of assignment is limited to 5 years of

continuous work in staffing services.

– Paper invoices are required

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Puerto Rico Agriculture 1.5% Industry 18.1% Services 80%

.

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 1.3M

Full-Time Employees 931K

Contingent Workers 160K

Non-Skilled Contingent

Workers

130K

Skilled Contingent Workers 30K

Unemployed Workers 175K

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.

– Increases to the minimum wage may be put

on hold by Governor Cuomo as he is

concerned that it will have an impact on

business.

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.

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United States Agriculture 1.6% Industry 16.7% Services 81.7%

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 155.6M

Full-Time Employees 133.7M

Contingent Workers 9.6M

Non-Skilled Contingent

Workers

6.5M

Skilled Contingent Workers 3.2M

Unemployed Workers 12.3M

Workforce1

Market2

– Unemployment in Grads has increased.

– Fewer independent contractors being engaged

(some apprehension over how they should be

treated in the workforce.)

– Number of roles in IT have increased by 4.1%

compared to last year – technology

professionals salaries rose on ave by 5% last yr.

– Due to a lack of supply and high demand, six

out of the top ten highest paid bachelors

degrees have an engineering major.

– Over a third of the unemployed are classified as

long term unemployed.

Activity3

– Increased trend in expansion of MSP

programs to extend to SOW and outsourced

workers – most notably in the life sciences

and financial industries.

– Healthcare Reform- : likely that the look

back period for consideration into the scheme

will be somewhere between 3 and 12

months. An employee must be full time for

that look back period to be considered. Even

at worst case scenario of a 3mth look back

period over 50% of temps will not qualify,

which should be positive news for the buyer.

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.

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Uruguay Agriculture 11% Industry 21.7% Services 67.3%

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 1.6M

Full-Time Employees 1.08M

Contingent Workers 464K

Non-Skilled Contingent

Workers

399K

Skilled Contingent Workers 65K

Unemployed Workers 99K

Workforce1

Market2

– Unemployment rates continue to fall as

employment opportunities increase, skilled labor

is in demand and often unavailable in key

categories.

– More than 3% of the total population has a

university degree; 12% of those received

degrees in engineering, IT or physical sciences.

– The amount of graduates in IT, the quality of

university education and the proficiency of them

have been the pillars of the software industry’s

development in Uruguay, which is the leading

exporter of software in the continent in terms of

revenue per person.

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.

– Pay and benefit parity are required.

– 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.

– VAT (Value Added Tax) is 22%.

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Venezuela Agriculture 7.3% Industry 21.8% Services70.9%

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 12.7M

Full-Time Employees 7.1M

Contingent Workers 4.9M

Non-Skilled Contingent

Workers

4.2M

Skilled Contingent Workers 684K

Unemployed Workers 751K

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

–Currency was devalued during February which

led to panic buying of imported goods.

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.

–Standard work hours are 8 hours per day and 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.

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EUROPE, MIDDLE EAST, AND AFRICA

Detailed Country Analysis

1/15/2016 ManpowerGroup Proprietary & Confidential 37

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Austria Agriculture 5.2% Industry 24.9% Services 69.9%

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 4.4M

Full-Time Employees 3.6M

Contingent Workers 549K

Non-Skilled Contingent

Workers

387K

Skilled Contingent Workers 162K

Unemployed Workers 197K

Workforce1

Market2

– Austria’s imposed restrictions on migrant

workers from Bulgaria and Romania have been

lifted.

– Continued unemployment has begun to effect

contingent workers as well, with declining hiring

activity across most categories of labor

– There are around 90,000 temporary workers in

Austria, a third of which are unskilled workers.

– Unemployment in the country is one of the

lowest in the European Union could rise

substantially due to the new measures being

introduced..

Activity3

- The Temporary Employment Act has been

amended to adopt the EU AWR directive

effective January 1 2013

- The revised Act implement a vocational

training fund administered by social partners

and financed by user undertakings (and co-

financed by the Labour Market Agency).

- Staffing companies will be charged €113 if

the employment service between a temporary

worker and their agency is terminated. Even

Temp to perm.

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.

– Wage dumping is prohibited in the case of

temporary workers.

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Bahrain Agriculture 1.5% Industry 78.6% Services 19.9%

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) http://www.tradearabia.com/news/LAW_226268.html

Total Workforce 618K

Full-Time Employees 488K

Contingent Workers 107K

Non-Skilled Contingent

Workers

91K

Skilled Contingent Workers 16K

Unemployed Workers 23K

Workforce1

Market2

– Approximately half of the population is Non-

Bahraini . The vast majority of the foreigners

are unskilled Asian workers and domestic

helpers.

– Shortage of construction workers.

Activity3

- Government working on new minimum wage

laws based on roles to replace the current

informal guidelines.

- 2400 job opportunities were available at the

10th Careers Expo which is organised by the

Ministry of Labour and was attended by over

3000 job seekers.

Legislation4

– New Labor law introduced in September 2012,

states that all employees regardless of whether

they work a 5 or 6 day week are entitled to 30

days annual leave.

– Employees are entitled to an additional day off

if a public holiday falls on the day that they are

usually off.

– Where employees are unfairly dismissed, the

new laws grant a full year’s salary.

– Expatriates are now able to change jobs

without the prior consent of their employers.

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Belarus Agriculture 10.3% Industry 45.5% Services 44.2%

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 4.7M

Full-Time Employees 3.9M

Contingent Workers 745K

Non-Skilled Contingent

Workers

634K

Skilled Contingent Workers 112K

Unemployed Workers 28K

Workforce1

Market2

– Institute of Labor Organisation estimates that

the unemployment rate in Belarus is

approximately 40 times the official rate of 0.6%

Activity3

- NMW increased as at the 1st of Jan 2013.

- Although official figures are difficult to obtain

up to 1.2 million working age individuals have

left Belarus in search of a better standard of

living. Approximately 90% are thought to go

to Russia.

- Trade Union membership is high. There are

more than 65 trade unions and total

membership is over 4 million.

Legislation4

– Paid maternity leave for 126 days and 3 year

unpaid maternity leave during which time the

role must be kept open.

– 8 hour work day .

– Value added tax of 20%.

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Belgium Agriculture 1.4% Industry 23.4% Services 75.2%

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 4.8M

Full-Time Employees 3.8M

Contingent Workers 617K

Non-Skilled Contingent

Workers

444K

Skilled Contingent Workers 173K

Unemployed Workers 354K

Workforce1

Market2

– Belgium has imposed restrictions on migrant

workers from Bulgaria and Romania.

– Shortage of skilled workers in IT and

Engineering.

– Belgium has seen temporary billings continue to

shrink

– Youth unemployment is at 20%

– The FGBT (National Union) hosted the ‘Day of

Temporary Workers’ Rights’ to lobby for better

working conditions affecting temporary workers

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

–There is increased discussion of regulation to

facilitate recruitment of aging workers

–The Employment Relations Act 2012 will amend

the previous version and introduce a legally

rebuttable presumption that self-employed

persons working in specific industries are in fact

employees, if at least five out of nine of the

criteria are fulfilled. The new Act became law

Jan 1 2013

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.

– Restrictions on paid leave and holidays have

been reduced for contingent workers

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Bulgaria Agriculture 6.8% Industry 33.3% Services 59.9%

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 3.4M

Full-Time Employees 2.6M

Contingent Workers 353K

Non-Skilled Contingent

Workers

300K

Skilled Contingent Workers 53K

Unemployed Workers 423K

Workforce1

Market2

– Youth unemployment of 30%

– Study by KNSB showed Bulgaria to have the

lowest minimum wage and average wage of all

27 EU member states.

– During the first 9 months of 2012, the average

wage increased by over 6% but the vast majority

of wage increases were for the higher income

earners.

– Engineers and skilled trades are the most

difficult roles to fill according to Manpower’s

most recent Talent Survey.

Activity3

- From Dec 2013, Bulgarians will have full

access to all labor opportunities in the EU.

Incentive to migrate will be high.

- Topped the list of the world’s fastest

shrinking populations.

- Recent protests over the economy,

government corruption and electricity prices

has led to the resignation of the Prime

Minister.

Legislation4

– Minimum wages were increased by 20 BGN on

the 1st Jan

– Standard work week is 40 hours

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Croatia Agriculture 14.9% Industry 27.3% Services 57.8%

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 1.7M

Full-Time Employees 1.1M

Contingent Workers 293K

Non-Skilled Contingent

Workers

249K

Skilled Contingent Workers 44K

Unemployed Workers 362K

Workforce1

Market2

– EU countries are restricting access to the labour

market for Croatians for the first two years of EU

membership.

– Youth unemployment is at 46.1%.

Activity3

- Employers are being subsidised to provide

professional training to their employees.

- Under new initiatives to reduce the

unemployment in over 50s, half of the gross

salary of employees over 50 will be paid by

the state.

- Unions are planning strikes over the

Government ‘s announcement of a 3%

reduction in salaries of public sector workers.

Legislation4

– Due to join the EU on the 1st of July.

– Government recently cancelled Collective

Bargaining agreements with public sector

employees in order to become more financially

stable prior to Croatia’s entrance in to the EU.

– Prison sentences have recently been

introduced to try to curb the number of

employers who are not paying wages on time.

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Czech Republic Agriculture 3.1% Industry 38% Services 58.9%

Market2

– 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.

– Demand for IT professionals is increasing

especially for candidates with business

development experience.

– Tendency for employers to recruit internally for

roles.

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 5.2M

Full-Time Employees 3.9M

Contingent Workers 876K

Non-Skilled Contingent

Workers

622K

Skilled Contingent Workers 254K

Unemployed Workers 420K

Activity3

– The majority of union activity and worker

protests are found in the transportation and

logistics industries.

– Deliberation of legislation to amend current

regulation of termination notice for workers in

violation of certain commitments related to

performance, participation, and sick leave

– Short-time working scheme launched. The

subsidy will apply where a genuine work

shortfall of between 20% and 60% occurs

and employers must use the available time

for training and developing staff.

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

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Denmark Agriculture 2.4% Industry 19.6% Services 78%

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 2.8M

Full-Time Employees 2.45M

Contingent Workers 249K

Non-Skilled Contingent

Workers

179K

Skilled Contingent Workers 70K

Unemployed Workers 136K

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.

– Labour Market remains weak.

– Despite the unemployment, there is difficulty in

filling lower wage jobs as it can reduced the

candidate’s future unemployment benefits if they

were to lose that job.

Activity3

– The EU directive on Temporary Agency Work

has not yet been implemented by Denmark

despite the December 2011 deadline.

Denmark now has two months to notify the

Commission of measures taken to implement

the Directive. Otherwise, the Commission

may decide to refer Denmark to the EU's

Court of Justice.

– Two recent Board of Equal Treatment

decisions show that job advertisements which

state that an employer is looking for

applicants of a certain age group are contrary

to the Anti-discrimination Act

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.

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Estonia Agriculture 4.2% Industry 30.2% Services 65.6%

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 702K

Full-Time Employees 578K

Contingent Workers 56K

Non-Skilled Contingent

Workers

48K

Skilled Contingent Workers 8K

Unemployed Workers 68K

Workforce1

Market2

– Changes to higher education are being

implemented so that full time students in six

Estonian universities will have free education.

– A recent survey found that approximately a third

of Estonians want to leave the country.

– Despite the economic climate, average gross

monthly wages increased by 5.9% last year.

Activity3

- Recent strikes over pay and workloads from

the education and health sectors are

expected to move to other sectors.

- Estonians have been subject to high levels of

austerity and moving to the Euro has

highlighted the low wages compared to the

majority of EU states.

Legislation4

– Minimum wage was increased from the 1st of

Jan.

– Courts have recently ruled that if Estonians

working in Finland for an Estonian company

must receive at least the Finnish Minimum

wage.

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Finland Agriculture 4.4% Industry 23.3% Services 72.3%

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 2.6M

Full-Time Employees 2.1M

Contingent Workers 340K

Non-Skilled Contingent

Workers

235K

Skilled Contingent Workers 105K

Unemployed Workers 182K

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

– Consideration of increased enforcement and

scope of reporting requirements for

employers engaging contingent workers

– New Bill on temporary workers to be

introduced Jan 2013. Employers will need to

give timeframe for engagement and may

have to report to stewards on why the want to

engage Temps rather than Perm.

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

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France Agriculture 2.9% Industry 22.3% Services 74.8%

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 29.5M

Full-Time Employees 23.4M

Contingent Workers 3.0M

Non-Skilled Contingent

Workers

2.0M

Skilled Contingent Workers 985K

Unemployed Workers 3.1M

Workforce1

Market2

– Labour Market continues to decline, having a

direct affect on temporary billings in France

– APEC reports that there is increasing trend

Trans Border workers with French working out

of country full time, in particular Switzerland,

Luxembourg, and Germany.

– 26% Youth unemployment

Activity3

– ManpowerGroup and Microsoft launched joint

incentive to help tackle a prevalent skill

shortage in the IT and telecoms sector.

– Discussion is underway to reform the Labor

Law by increasing flexibility whilst improving

the ease in which a worker can be laid off.

The law will enable both hours and wages to

be reduced during down times at a lower cost

for employers.

Legislation4

– Subcontracting is illegal in France, however

neutral vendor programs can be established.

– 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

– Double-contract is mandatory for each

assignment .Both contracts must be signed 2

days after the beginning of the assignment

ultimately. Possible fines for non compliance.

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Germany Agriculture 1.6% Industry 28.4% Services 70%

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 42.4M

Full-Time Employees 34.9M

Contingent Workers 4.6M

Non-Skilled Contingent

Workers

3.5M

Skilled Contingent Workers 1.1M

Unemployed Workers 2.8M

Workforce1

Market2

– Increased trend of aging workforce remaining in

the workforce

– Almost 4 in 5 companies are trying to recruit

skilled staff but 70% are finding the recruitment

process challenging. More companies are

looking to fill positions with foreign workers.

– 8% youth unemployment.

– There is a €140 million program to attract

foreign workers to fill the 10,000 apprenticeships

it has vacant, but German language skills are a

real barrier to entry.

Activity3

– Increased union activity , strikes in Industrial

and Transportation industries

– Government and employers actively targeting

and recruiting workers from Southern Europe

– The Minister of the Interior submitted a bill to

regulate employment data protection. The

cabinet have expressed their commitment to

the bill.

– Consultation on preventing contract labor

being used to circumvent paying rates set by

collective bargaining .

Legislation4

– Minimum wages vary by industry.

– Non-EU workers are not able to obtain work

visas if their employer is a staffing provider.

– 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.

– As of the 1st Nov we have seen wage

increases for some temp workers through the

enforcement of Collective Agreements.

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Greece Agriculture 12.5% Industry 19.7% Services 67.8%

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 5M

Full-Time Employees 2.3M

Contingent Workers 1.3M

Non-Skilled Contingent

Workers

1.1 M

Skilled Contingent Workers 269K

Unemployed Workers 1.3M

Workforce1

Market2

– Youth unemployment was at 57.6% in January.

– In addition to the high unemployment rates,

companies are having difficulty paying with two

thirds of those in the private sector not paid on

time.

– Only about a third of the 1.6 million workers in

the private sector are still working an 8 hour day

as the remainder have had their hours reduced.

– There is a one year limit on unemployment

benefits which means that only a small number

of Greeks are able to receive financial help.

Activity3

- Numerous strikes persist in protest to the

austerity measures that are being brought in

by the European Union.

- Austerity measures include some public

sector wages being decreased by a third and

pensions being cut by 5%-15%.

- Significant tax increases have been coupled

with decreasing social benefits.

Legislation4

– Retirement age to be lifted from 65 to 67.

– Changes to the Labor Law will enable the

Government to set the minimum wage.

– Redundancy compensation and notice periods

have also been decreased.

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Hungary Agriculture 4.5% Industry 32.1% Services 63.4%

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.

Total Workforce 4.4M

Full-Time Employees 3.4M

Contingent Workers 455K

Non-Skilled Contingent

Workers

341K

Skilled Contingent Workers 114K

Unemployed Workers 466K

Activity3

– Hungarian Labour Code implements a

number of restrictions on contract limits and

renewals, but also allows for the subleasing

of workers beyond scope of contract and

extends hours and scheduled time that

workers can be contracted to work

– New Act on the enforcement and transition of

the New Labor Code will come in to effect

Jan 2013.

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.

– New Labor Code introduced . Some

substantial changes to be aware of.

Workforce1

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

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

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Ireland Agriculture 4.6% Industry 19.6% Services 75.8%

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 2.1M

Full-Time Employees 1.5M

Contingent Workers 287K

Non-Skilled Contingent

Workers

232K

Skilled Contingent Workers 54K

Unemployed Workers 306K

Workforce1

Market2

– Professional jobs increased last quarter

– 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.

– Number of large-scale business networking

events and more foreign direct investment, may

result in increased hiring in the new year.

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. 12,000 new jobs

created in the private sector last year

compared to a net loss of 250,000 jobs in

2011.

– Ireland has reversed its decision to restrict

Bulgarian and Romanian workers in order to

support local job market and employment

needs

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.

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Israel Agriculture 1.7% Industry 20.6% Services 77.7%

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.

Total Workforce 3.5M

Full-Time Employees 2.9M

Contingent Workers 427K

Non-Skilled Contingent

Workers

363K

Skilled Contingent Workers 64K

Unemployed Workers 244K

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.

– Israel joins ILO Convention 181 on Private

Employment Agencies. This will provide additional

rights to temporary 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

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

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Italy Agriculture 3.8% Industry 28.8% Services 67.4%

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 25.7M

Full-Time Employees 17.2M

Contingent Workers 5.6M

Non-Skilled Contingent

Workers

4.3M

Skilled Contingent Workers 1.4M

Unemployed Workers 2.9M

Workforce1

Market2

– Italy has imposed restrictions on migrant

workers from Bulgaria and Romania.

– Over 40% of the workforce is affiliated with

union membership

– Increase in number of temp workers being

engaged in Public Services.

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

– Recent strikes against austerity measures

have turned violent.

Legislation4

– 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.

– Subcontracting is not allowed.

– Labour reforms were enforced in July this year,

making significant changes to temporary

employment relationships. No specific reason

required for using temps and time constraints

on temp contracts outlined.

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Kazakhstan Agriculture 29.4% Industry 18.9% Services 51.7%

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 9M

Full-Time Employees 5.8M

Contingent Workers 2.7M

Non-Skilled Contingent

Workers

2.3M

Skilled Contingent Workers 407K

Unemployed Workers 476K

Workforce1

Market2

– In the past two years, Kazakhstan has more

than doubled the amount spent on Science to

$320 million in 2012.

– The average age in Kazakhstan is 30.

– Unemployment is at 5%

Activity3

- Will host EXPO-2017.

Legislation4

– 40 hours per week in normal circumstances

although this is limited to 36 hours for heavy

manual or dangerous work.

– Minimum wages exist but the law stipulates

that if a worker is doing more than is set out in

their contract or is doing the work of another

employee in addition to their own that they are

entitled to increased wages.

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Latvia Agriculture 8.8% Industry 24.1% Services 67.1%

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 1M

Full-Time Employees 825K

Contingent Workers 112K

Non-Skilled Contingent

Workers

95K

Skilled Contingent Workers 17K

Unemployed Workers 110K

Workforce1

Market2

– Unemployment is steadily declining due to an

increase in the number of available jobs.

– Overall the number of jobs increased by more

than75,000 in 2012.

– Latvia is currently the fastest growing country in

Europe with growth of 5%.

– Growth in construction, manufacturing and

commercial services.

Activity3

- Due to adopt the Euro from 2014.

- 1500 public sector workers have gone on

hunger strike over wages.

- Government proposals to lure Latvians back

and plans to subsidise businesses which

attract highly skilled workers to Latvia.

Legislation4

– Standard work week is 40 hours, but before

holidays the length of the working day is

reduced by 1 hour.

– 42 consecutive hours rest required in each 7

day period.

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Lithuania Agriculture 9.0% Industry 24.5% Services 66.5%

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 1.6M

Full-Time Employees 1.3M

Contingent Workers 157K

Non-Skilled Contingent

Workers

134K

Skilled Contingent Workers 24K

Unemployed Workers 202K

Workforce1

Market2

– ‘Youth and long term unemployment are

showing signs of recovery but are still at 26.4%

and 6.5% respectively.

Activity3

- New Government is keen to focus on growth

rather than spending cuts. From 2009 to

2012, Lithuania reduced its deficit from 9.4%

to less than 3%.

Legislation4

– Overtime can not exceed 4 hours in two

consecutive days.

– Paid annual holiday is a minimum of 28 days

this increases to 35 days for specific groups

including single parents and disabled persons.

The amount of annual leave can not be

reduced for part- time workers.

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Luxembourg Agriculture 1.0% Industry 17.2% Services 81.8%

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 249K

Full-Time Employees 210K

Contingent Workers 23K

Non-Skilled Contingent

Workers

17K

Skilled Contingent Workers 6K

Unemployed Workers 16K

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

–Regulation of contingent worker engagement

has been reduced to allow employers more

flexibility during challenging economy

– Minor change introduced by Grand-Ducal

decree. According to the Labour Code

jobseekers can be assigned to a temporary job

which has a public function and will be entitled to

higher unemployment benefits; usually, the

duration of such a job is limited to 6 months and

can be renewed once

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.

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Morocco Agriculture 40.9% Industry 21.7% Services 37.2%

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.

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 10.8M

Full-Time Employees 4.3M

Contingent Workers 5.5M

Non-Skilled Contingent

Workers

4.2M

Skilled Contingent Workers 1.3M

Unemployed Workers 1.0M

Activity3

– There have been ongoing protests in

Morocco across the workforce, with

expectations of constitutional reform up

and down since July of this year.

– Awareness of the need for regulation

of temporary agencies increasing .

– The Office of Vocational Training and

Employment Promotion has

announced that it is working with

Microsoft to create 100 new IT

Academies across the country to

provide quality training.

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

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The Netherlands Agriculture 2.8% Industry 17.8% Services 79.4%

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 8.0M

Full-Time Employees 6.3M

Contingent Workers 1.1M

Non-Skilled Contingent

Workers

752K

Skilled Contingent Workers 370K

Unemployed Workers 573K

Workforce1

Market2

– Labor market is projected to continue its decline

in 2013

– Netherlands has removed restrictions on

migrant workers from Bulgaria and Romania.

– High cost of dismissal continues to make

contingent labor a cost effective option, despite

parity requirements.

– Measures taken to get temporary workers back

to work after long term sick.

– Tax changes could result in decrease of skilled

contractors.

– Trend for training and working at the same time.

Activity3

– Regulation and enforcement of staffing

agency licensing and guidelines is increasing

– Referred to Court of Justice EU to better

provide specific legislation on the return to

work after maternity and other parental leave.

– Annual reporting requirements for agencies-

include hours, compensation and

demographic dat.

– Tax developments affecting Employers and

Employees also introducing a one-off

employer’s levy on top salaries, and

increases employers’ liability if agency fail to

pay.

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

transportation.

– Job requirements can’t include ‘years of

experience’, as it is considered discriminatory.

– Parity requirements exist including severance.

– No priority rules for re-employment.

– Reduction in sick pay entitlement for temps-

now 3 months.

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Norway Agriculture 2.5% Industry 19.7% Services 77.8%

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 2.7M

Full-Time Employees 2.4M

Contingent Workers 177K

Non-Skilled Contingent

Workers

131K

Skilled Contingent Workers 46K

Unemployed Workers 94K

Workforce1

Market2 – The labor market remains relatively strong

– Concern growing over the true cost of the

adoption of the EU Temporary Workers

Directive.

– There is a growing shortage of skilled labor in

Norway, particularly in:

– Health service workers

– Engineers

– Building and construction workers

– 5000 foreign applicants applied to have their

qualifications recognized in Norway last year.

Activity3

– AWD and Working Environment Act further

regulating pay and benefit parity for

contingent workers, effective in July of 2013

– In line with the Working time Directive, there

is a proposal that any holidays not taken due

to either illness or parental leave will be

carried over into the next holiday period.

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.

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Poland Agriculture 12.8% Industry 30.2% Services 57%

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.

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 18.0M

Full-Time Employees 12.1M

Contingent Workers 3.5M

Non-Skilled Contingent

Workers

2.4M

Skilled Contingent Workers 1.1M

Unemployed Workers 2.4M

Activity3

– Increased access to migrant workers for

contingent labor

– Reviewing legislation that would allow

employers to reduce worker pay in first

year of engagement

– Minimum wage increase as of the 1st of

January.

– Proposals to reduce the overtime loading.

– Proposals to increase the length of paid

maternity leave.

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

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Portugal Agriculture 10.9% Industry 27.7% Services 61.4%

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 5.6M

Full-Time Employees 3.7M

Contingent Workers 1.0M

Non-Skilled Contingent

Workers

824K

Skilled Contingent Workers 206K

Unemployed Workers 890K

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.

– Govt push for 50% reduction in temp contracts

in Public Services by end of 2013

– Youth unemployment is at 38%.

Activity3

– Increased union activity and worker protests,

particularly with low-skilled workers some

recent protests have turned violent

– Indication that contingent labor will be

discouraged in favor of full-time employment

– Amendments to Portuguese Labour Code

reduced the severance and termination

penalties to EU average

– Measures to increase retirement age to 65.

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.

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Romania Agriculture 30.1% Industry 28.7% Services 41.2%

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 4.8M

Full-Time Employees 3.0M

Contingent Workers 1.5M

Non-Skilled Contingent

Workers

1.1M

Skilled Contingent Workers 322K

Unemployed Workers 309K

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.

– Growing IT outsourcing industry in Romania.

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.

– Restrictions lifted on Romanian workers in

Europe.

– Number of legislative changes being

introduced which indicates a move towards a

more regulated labour market as the country

aligns with EU

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.

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Russia Agriculture 9.7% Industry 27.5% Services 62.8%

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.

– Market remains “sluggish”

Total Workforce 75.9M

Full-Time Employees 66.7M

Contingent Workers 5.2M

Non-Skilled Contingent

Workers

4.0M

Skilled Contingent Workers 1.3M

Unemployed Workers 4.0M

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.

– VAT (Value Added Tax) is 18%.

– Invoices are required to be in paper form.

Workforce1

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

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Serbia Agriculture 24% Industry 25.1% Services 50.9%

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 2.9M

Full-Time Employees 1.5M

Contingent Workers 766K

Non-Skilled Contingent

Workers

651K

Skilled Contingent Workers 115K

Unemployed Workers 654K

Workforce1

Market2

– High unemployment.

– Difficult to access skilled labor

– Political challenges for foreign entities hiring

local talent or importing workers

Activity3

- Proposal to introduce a law in the public

sector to increase the employment of long

term unemployed, disabled persons and

those over 50.

- Serbia starting process to gain access into

the EU.

- Proposed law to ensure that workers who

strike can only be fired if their strike is

deemed illegal. However, workers will have

to lodge intention of the strike 10 days prior

to the proposed strike.

Legislation4

– Standard work week is 40 hours over 5 days.

– Weekly rest of no less than 24 consecutive

hours.

– Minimum of 20 days annual leave which

increases with experience and length of

service.

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Slovakia Agriculture 3.2% Industry 27.1% Services 69.7%

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 2.7M

Full-Time Employees 2.0M

Contingent Workers 361K

Non-Skilled Contingent

Workers

263K

Skilled Contingent Workers 97K

Unemployed Workers 389K

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

– Currently reviewing legislation to increase

worker rights, overtime pay, and modify

contract duration and renewal limits for

contingent workers due to be introduced

2013

– Concern that changes to Slovakia’s labour

code will have a detrimental effect on the

manufacturing industry which has previously

thrived there.

– Proposed increase in minimum wage for

2013 with parliament.

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.

–Corporate tax was increased from 19% to 23% in

January and Slovakia has introduced an

incremental tax rate on individuals in place of the

flat tax.

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Slovenia Agriculture 8.8% Industry 32.5% Services 58.7%

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 914K

Full-Time Employees 676K

Contingent Workers 126K

Non-Skilled Contingent

Workers

92K

Skilled Contingent Workers 34K

Unemployed Workers 111K

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.

– Increased strike activity.

– Increased regulation of reporting

requirements for employers engaging

contingent workers

– Union proposals to reduce the number of

temporary staffing firms

– Govt talks to reform Labour market focused

on tighter regulations for temporary agencies

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.

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South Africa Agriculture 5.1% Industry 25% Services 69.9%

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 18.3M

Full-Time Employees 11.6M

Contingent Workers 2 .1M

Non-Skilled Contingent

Workers

1.7M

Skilled Contingent Workers 445K

Unemployed Workers 4.6M

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.

– Significant increase in the proportion of

temporary jobs. Since 2000, they have

increased to ~31% from 11%

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.

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Spain Agriculture 4.3% Industry 23.1% Services 72.6%

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 23.1M

Full-Time Employees 14.0M

Contingent Workers 3.0M

Non-Skilled Contingent

Workers

2.2M

Skilled Contingent Workers 822K

Unemployed Workers 6.0M

Workforce1

Market2

– Decreased engagement of self-

employed/freelance workers has resulted in

higher number of freelancers available for

contract work.

– A heavy percentage of emerging workers are

currently among the unemployed.

– Employment in Spain is highly regulated-

pressure is mounting for the govt to relax these

regs in order to boost the Labour market

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.

–Parliament passed legislation to align local

workforce policy with EU guidelines

–The number of Spanish working abroad has

increased to 1.6 million – this is up by

approximately a quarter since 2008.

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).

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Sweden Agriculture 2.1% Industry 19.9% Services 78%

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 5.0M

Full-Time Employees 4.1M

Contingent Workers 486K

Non-Skilled Contingent

Workers

350K

Skilled Contingent Workers 136K

Unemployed Workers 447K

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

– Not currently compliant with AWD, under

pressure to enforce parity regulations for

agency workers

– Ongoing inquiry into fixed term contract

policies

– A new collective bargaining agreement will

improve pay entitlements for covered

temporary agency workers.

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.

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Switzerland Agriculture 3.3% Industry 23.4% Services 73.3%

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 4.9M

Full-Time Employees 4.0M

Contingent Workers 721K

Non-Skilled Contingent

Workers

491K

Skilled Contingent Workers 231K

Unemployed Workers 168K

Workforce1

Market2

– This past quarter showed an increase in

unemployment, but also a promising increase in

temporary labor adoption

– 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.

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Tunisia Agriculture 17.7% Industry 32.1% Services 50.2%

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 3.8M

Full-Time Employees 2.0M

Contingent Workers 1.1M

Non-Skilled Contingent

Workers

894K

Skilled Contingent Workers 223K

Unemployed Workers 641K

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.

– Violence and strikes have been enacted to

protest against the assassination of a key

member of the opposition.

Legislation4

– The maximum work week is 48 hours.

– Maximum contract length is four years.

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Turkey Agriculture 23.8% Industry 26.2% Services 50%

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 27.9M

Full-Time Employees 16.1M

Contingent Workers 9.2M

Non-Skilled Contingent

Workers

7.2M

Skilled Contingent Workers 2.0M

Unemployed Workers 2.6M

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.

– New regulation of annual leave under the

new Code of Obligations

Legislation4

– No specific legislation for contingent work

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

– Background checking is legal, however, drug

checking is not.

– Standard work hours are 45 hours per week.

Employees may work a maximum of 11 hours

per day and a maximum of 270 hours of

overtime per year.

– New annual leave regulations introduced

under the new Code of Obligations.

– Under the Labour Law an employment contract

may have fixed or flexible terms

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Ukraine Agriculture 15.8% Industry 23.4% Services 60.8%

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 20.4M

Full-Time Employees 15.4M

Contingent Workers 3.4M

Non-Skilled Contingent

Workers

3.0M

Skilled Contingent Workers 406K

Unemployed Workers 1.6M

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

– Previous legislation that passed cost of

staffing agencies to the job seekers, has

been modified to shift cost of agency services

to employers

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.

–Subcontracting is legal.

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United Arab Emirates Agriculture 4.2% Industry 24.4% Services 71.4%

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 4.0M

Full-Time Employees 3.6M

Contingent Workers 159K

Non-Skilled Contingent

Workers

126K

Skilled Contingent Workers 33K

Unemployed Workers 183K

Workforce1

Market2

– Large differences between the salaries and

benefits of public and private sector workers.

– Potentially the actual rates of unemployment are

higher than reported.

– Of the 4 million who work in the private sector

only 20,000 are Emirati.

– About 90% of the UAE population is from

foreign workers.

Activity3

- The Government has just announced a

AED330 billion worth of projects aimed to

create 5000 professional jobs.

- Calls have been made to introduce a two day

week-end in the private sector offset by a

longer working day.

Legislation4

– Employees are eligible for 15 days sick leave

fully paid.

– Foreign workers can be employed until 65

years.

– 60 day short term work permits can be

renewed up to 6 times.

21%

79%

Breakdown of Contingent Workforce

Skilled Non-Skilled

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United Kingdom Agriculture 1.2% Industry 19.2% Services 79.6%

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 31.5M

Full-Time Employees 24.7M

Contingent Workers 4.4M

Non-Skilled Contingent

Workers

3.5M

Skilled Contingent Workers 922K

Unemployed Workers 2.4M

Workforce1

Market2

–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).

–Increased adoption of contingent workers as

opposed to full-time employees to meet current

hiring needs

–Aging workforce and limited specialist engineering

degree take-up has created a shortage of

engineers. Whilst highly skilled migrants may have

filled these roles in the past, the policy to reduce the

number of non-EU migrants is restricting applicants.

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.

– Unfair Dismissal and Qualifying Periods

amended.

– Government plans to consult and review on

AWRs view of possible challenging the EU

Directive.

Legislation4

– 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.

– Auto enrollment to Pension scheme rolled out-

costly set up.

– IR35 TAX Limited Company- Contractor Status

and Establishing Employment relationship

21%

79%

Breakdown of Contingent Workforce

Skilled Non-Skilled

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ASIA PACIFIC Detailed Country Analysis

1/15/2016 ManpowerGroup Proprietary & Confidential 78

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Australia Agriculture 3.3% Industry 21.1% Services 75.6%

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 12.2M

Full-Time Employees 10.2M

Contingent Workers 1.3M

Non-Skilled Contingent

Workers

900K

Skilled Contingent Workers 404K

Unemployed Workers 659K

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.

– Recent survey of managers in 44 countries

suggests that Australia has the worst skill

shortage and almost half of employers are

having difficulty retaining staff.

– Relatively low levels of youth unemployment.

– Economy hit by cyclones, floods, droughts and

fire.

Activity3

– Fair Work Act under increasing scrutiny,

which could result in decreased restrictions of

employer guidelines in hiring and firing of

workers.

– Recent rulings related to WHS uphold higher

standards for contractor management and

oversight

– Government has announced a $1 billion

nvestment plan to increase jobs in mining

and infrastructure. Proposed changes to the

law to ensure that Australian firms get to bid

for all high value projects before they are

sent out to foreign suppliers.

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.

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China Agriculture 39.6% Industry 27.2% Services 33.2%

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 779.4M

Full-Time Employees 598M

Contingent Workers 149M

Non-Skilled Contingent

Workers

126M

Skilled Contingent Workers 24M

Unemployed Workers 32M

Workforce1

Market2

– Skilled worker shortage is increasingly impacting

hiring needs of local employers and is expected

to worsen as the aging workforce continues to

outnumber emerging workforce.

– Regulatory changes in favor of employees and

around temporary work make it an increasingly

more complex market. Many regions have their

own regulations in addition to national laws.

– Government statistics showed that 12.7 million

jobs were created in 2012.

– Working age population is beginning to shrink.

Activity3

– New legislation reviewed that impacts

severance calculations, social insurance

requirements, and tax liabilities of employers

contracting labor.

– Proposed amendments to labor code would

establish pay and benefit parity for contingent

workers as well as

– Proposed Labour Regulations planned to

restrict the use of outsourced workers to the

following: 1) employment does not exceed 6

mths; 2) replacing employees on leave; 3) to

meet high demand.

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 must have a maximum contract

duration of six months

–Supportive workers fill roles designed to support FTEs

–Substitute workers replace FTE’s who leave posts for

holiday, study, or other non-permanent reason

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Hong Kong Agriculture 0.2% Industry 13.5% Services 86.3%

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 3.8M

Full-Time Employees 3.3M

Contingent Workers 411K

Non-Skilled Contingent

Workers

312K

Skilled Contingent Workers 99K

Unemployed Workers 125K

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.

– The Hong Kong Institute of Engineers have

reported that with an increase in infrastructure

projects that engineering firms are reporting a

20% shortage in engineers.

– Youth unemployment is at 11.6%.

Activity3

– Work Incentive Transport Subsidy is the

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.

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India Agriculture 51.1% Industry 22.4% Services 26.5%

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 452.3M

Full-Time Employees 348.1M

Contingent Workers 87.0M

Non-Skilled Contingent

Workers

65M

Skilled Contingent Workers 22M

Unemployed Workers 17.2M

Workforce1

Market2

– IT-software and BPO and natural resource job

market strengthens.

– Indian Staffing Federation (ISF) expects flexible

workers will make up 10% of the organised

labour force in the country by 2025

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

has contributed to India having the highest wage

inflation of any of the Asian economies.

– Self employed/freelance workers make up over

30% of available non-skilled labor and close to

15% of the skilled labor in India.

Activity3

– Increased pressure to review the Contract

Labour Act to provide more rights for workers

and be modified for current workforce

conditions

– One of India’s leading parties state their

intention to prohibit contract work in Public

Services. Further being the need for

regulation to the public agenda.

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. Although not enforced in

man instances.

–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.

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Japan Agriculture 3.7% Industry 26.3% Services 70%

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 65.8M

Full-Time Employees 55.2M

Contingent Workers 7.9M

Non-Skilled Contingent

Workers

5.8M

Skilled Contingent Workers 2.0M

Unemployed Workers 2.8M

Workforce1

Market2

– Aggressive focus on hiring of contingent labor in

local market, but ongoing reluctance of full time

employees to consider contingent jobs

– Outsourcing is an increasing trend in Japan

particularly life sciences.

– Medical sales , finance and accounting jobs,

HR, IT and legal profession candidates are in

high demand

– Bilingual staff are also in high demand

– Trend for young people to move to developing

Asian countries to search for work.

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

–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.

–Regulations recommend against, but do not

prohibit, contract extensions beyond three years.

–No pay or benefit parity for temporary workers,

however under the Japan’s Worker Dispatch Law

which came into effect on 1 Oct 2012 there are

new measures including considering the salary

level of employees when determining the temp’s

salary and taking measures to ensure that the

temp’s employment after termination.

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Korea Agriculture 6.6% Industry 24.2% Services 69.4%

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 25.8M

Full-Time Employees 17.9M

Contingent Workers 7.1M

Non-Skilled Contingent

Workers

4.9M

Skilled Contingent Workers 2.1M

Unemployed Workers 748K

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.

– The staffing market in South Korea has grown

strongly in recent years and continues to grow.

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 but not enforced

Lower pay is common in non-skilled workers

– After one year or employment, a temporary

worker is entitled to severance pay

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Macau Agriculture 0.2% Industry 18.5% Services 81.3%

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 344K

Full-Time Employees 312K

Contingent Workers 25K

Non-Skilled Contingent

Workers

21K

Skilled Contingent Workers 3K

Unemployed Workers 6.5K

Workforce1

Market2

– 103K working immigrants, mostly from mainland

China.

– Average daily wage in the construction industry

rose by 5.6% over the last quarter.

– Based on the service offering (the only legal

gambling city in China) the skill gap is for front-

line staff in hospitality and tourism.

– Additionally skilled technicians are in short

supply.

Activity3

- Amendments being drafted for the Foreign

Labor Law to prevent foreign workers from

leaving their jobs to be employed in the

lucrative casino industry.

Legislation4

– Labor contracts include a probationary period

of 90 for an indefinite contract and 30 days for

a fixed term contract.

– Both fixed and variable term contracts can not

be in excess of two years (including renewals.)

– Fixed term contracts can not be renewed more

than twice.

– Six days of paid annual leave during the

second year of service.

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Malaysia Agriculture 13.5% Industry 27% Services 59.5%

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 13M

Full-Time Employees 9.4M

Contingent Workers 3.2M

Non-Skilled Contingent

Workers

2.3M

Skilled Contingent Workers 927K

Unemployed Workers 389K

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.

– 70% of students find employment in the first few

months after graduating from university.

– Of the 3000 graduates who have participated in

the Graduated Career Accelerated Program,( a

6 week intensive course to increase skills and

employability) 90% found jobs.

Activity3

– Legislation is being introduced where the

levy paid by the employers when engaging

migrant workers will now be the

responsibility of the foreign worker.

Legislation4

–The maximum work week is 48 hours.

–There are no restrictions on the contract length

for a temporary worker.

–Has recently established a minimum wage of 800-

900 ringgits/month

–There are no parity requirements in place.

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New Zealand Agriculture 6.6% Industry 20.9% Services 72.5%

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 2.4M

Full-Time Employees 1.9M

Contingent Workers 362K

Non-Skilled Contingent

Workers

257K

Skilled Contingent Workers 105K

Unemployed Workers 165K

Workforce1

Market2

– Labor shortages are on the rise as migrations to

Australia and other countries continue at

increasing rates.

– Significant engineering shortage.

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.

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Philippines Agriculture 35.2% Industry 14.6% Services 50.2%

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 40.4M

Full-Time Employees 22.3M

Contingent Workers 15.4M

Non-Skilled Contingent

Workers

11.9M

Skilled Contingent Workers 3.5M

Unemployed Workers 2.75M

Workforce1

Market2

– Local labor force is heavily targeted by

surrounding countries to migrate and support

their labor shortages.

– Median age is 23.

– It is estimated that over 8 million Filipinos are

living /working abroad.

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.

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Singapore Agriculture 1.1% Industry 21.8% Services 77.1%

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 2.6M

Full-Time Employees 2.1M

Contingent Workers 382K

Non-Skilled Contingent

Workers

275K

Skilled Contingent Workers 107K

Unemployed Workers 46K

Workforce1

Market2

– Singapore is benefiting from increase level of

skilled migrant workers, particularly from India to

meet the demand for its growing economy.

– Service and sales positions accounted for a

quarter of the vacancies during 2012. Mainly as

a result of the low-level of the positions,

employers had difficulty filling two thirds of the

vacancies with local staff.

– Youth unemployment is at 6.7% (half the global

figure of 13%).

Activity3

– Increased regulation of migrant workers

requires employers to insure and cover

medical costs.

– Tighter restriction of the quotas in place for

hiring foreign workers. Additionally the

minimum wage for a foreign professional has

more than quadrupled to 144 000 SGD per

annum.

– The Tripartite Committee is committed to

driving effective aging workforce strategy and

has released Re-Employment Guidelines for

Older Workers which are now applicable to

contingent workers

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.

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Taiwan Agriculture 5.1% Industry 35.9% Services 59%

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 11.4M

Full-Time Employees 8.5M

Contingent Workers 2.4M

Non-Skilled Contingent

Workers

1.8M

Skilled Contingent Workers 615K

Unemployed Workers 475K

Workforce1

Market2

–Taiwan’s labor shortage is on the rise, particularly

in the tech sector.

– The Taiwan Labor Front is calling on the Council

of Labor Affairs to restrict the number of foreign

workers being hired to increase the employment

prospects of the Taiwanese. Restrictions have

previously been relaxed to attract investment from

mainland China and abroad.

Activity3

– Mass protests from the public sector when

performance bonuses were reduced from 2.6

months of salary to 1.2 months.

– Recent rises in the minimum hourly wage but

hikes in the minimum monthly wage have

been put on hold until specific economic

targets are met.

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.

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Thailand Agriculture 41.5% Industry 19.5% Services 39%

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 39.8M

Full-Time Employees 17.4M

Contingent Workers 22.3M

Non-Skilled Contingent

Workers

16.3M

Skilled Contingent Workers 6.0M

Unemployed Workers 223K

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

– 40% increase to minimum wage is now in

effect, with average rate of 300 baht/day.

Legislation4

– Partial benefit parity requirements exist for

temporary workers, but there is no pay parity

mandated.

– Employers are able to specify demographic

requirements for candidates and relocate staff

in-country with right to dismiss if relocation is

refused

– The maximum working hours are 8 hours/day

and 48 hours/week.

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Vietnam Agriculture 47.9% Industry 23.9% Services 28.2%

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 46.1M

Full-Time Employees 11.6 M

Contingent Workers 33.6M

Non-Skilled Contingent

Workers

26.5M

Skilled Contingent Workers 7.1M

Unemployed Workers 949K

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

–Minimum wage varies by region, but has

increased nation wide an average for 30-45%,

with highest wages set in major metro markets

like Hanoi and Ho Chi Minh city

–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.