Q2 2012 Global Talent Market Quarterly

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The Global Talent Market Quarterly is a summary of the current economic and labor market conditions around the world and gives insight into how they might impact you.

The Global Talent Market Quarterly is a summary of the current economic and labor market conditions around the world and gives insight into how they might impact you.

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  • 1. Global Talent Market Quarterly SECOND QUARTER l 2012
  • 2. Global Talent Market QuarterlyCONTENTS 3 Global Economic Situation • Briefing • Outlook 6 Global Labor Market Update • Americas • EMEA • APAC • Global Labor Market Spotlight • Legislative Update 12 U.S. Labor Market Overview • Current Employment Conditions • Supply and Demand • Labor Market Spotlight 16 Workforce Solutions Industry Insight • Acquisition and Retention in the War for Talent • Future of Work in Advanced Economies • Kelly Knowledge
  • 3. Global Economic Situation SECOND QUARTER l 2012
  • 4. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  ECONOMIC  BRIEFING     Global  economic  growth  has  been  lethargic  in  the  first  part  of  the  year,  and  is  only  forecast  to  reach  2.7%  in  2012,  well  below  the  long-­‐term   trend.  The  global  economy  con=nues  to  face  numerous  headwinds,  including  the  Eurozone  economic  crisis,  the  threat  of  higher  oil  prices,   fiscal  deficits  in  several  developed  countries,  and  a  slowdown  in  demand  in  some  emerging  markets.       AMERICAS   EMEA   APAC   Con=nued  modest  economic  growth  is   The  Eurozone’s  economic  problems  con=nue   Although  the  global  economic  climate  is   expected  throughout  the  region,  with   to  limit  regional  and  global  growth  prospects,   keeping  growth  rates  in  check  in  many  APAC   external  risks  such  as  rising  oil  prices  and   with  few  markets  showing  posi=ve  trends.   countries,  healthy  economic  performances   slower  demand  from  Europe  and  Asia   are  forecast  throughout  the  region.   Eurozone   dampening  growth  prospects.     Japan   The  Eurozone  economy  began  to  contract  in   Canada   late  2011.  Despite  some  resilience,  primarily  in   Reconstruc:on  efforts  following  the  2011   Muted  GDP  growth  of  just  over  2%  is  expected   the  northern  countries,  the  region  is  not   natural  disasters  con:nue  to  drive  Japan’s   to  con:nue  throughout  2012,  with  a  more   expected  to  return  to  posi:ve  economic  growth   modest  growth,  but  domes:c  consump:on  is   favorable  outlook  projected  in  2013  as  global   before  the  second  half  of  2012.   also  beginning  to  show  signs  of  improvement.   economic  uncertainty  subsides.   China   U.K.   U.S.   The  U.K.  economy  con:nued  to  weaken  in  the   The  country’s  economic  growth  rate  remains   Slow  but  stable  growth  con:nues  for  the  U.S.   first  part  of  2012  and  will  struggle  to  achieve   above  8%,  but  the  pace  has  cooled  in  recent   economy  in  2012.  Improvements  in  consumer   posi:ve  growth  for  the  year.  Modest  growth  is   months  due  to  slower  external  demand  and   demand  were  offset  by  weaknesses  in   forecast  to  begin  in  late  2012  and  into  2013.   weakness  in  construc:on  and  manufacturing.   government  spending  and  business  investment   India   in  the  first  quarter.   Central  and  Eastern  Europe   Growth  in  export-­‐dependent  countries  will   India’s  economy  is  expected  to  rebound  to  an   La=n  America   con:nue  to  be  subdued  as  a  result  of  the   above  7%  growth  rate  in  2012,  following  a   The  region  is  expected  to  see  growth  in  the   Eurozone’s  woes;    however,  Russia’s  economy  is   slight  slowdown  in  2011.   mid-­‐3%  range  in  2012,  led  by  countries  such  as   s:ll  growing  at  a  modest  pace.   Australia   Brazil,  Mexico,  Peru,  Colombia  and  Chile  that   Economic  growth  will  regain  some  momentum   have  strong  economic  fundamentals,  easy   Middle  East  and  North  Africa   The  region  is  expected  to  see  moderate  growth   in  2012,  with  strength  in  the  natural  resources   monetary  policies,  and  healthy  domes:c   industry  tempered  by  sluggish  domes:c   in  2012,  with  gains  from  higher  oil  prices  offset   demand.     demand  and  uncertainty  over  global  economic   by  risks  from  ongoing  poli:cal  and  social  issues.       condi:ons.          4   Sources:  IHS  Global  Insight  reports  (April  2012);  EU  Expects  2012  Recession,  Wall  Street  Journal,  02.23.12;  UK  Back  in  Recession,  Wall  Street  Journal,  04.25.12;  Economic  Outlook  Darkens  for  Eastern  Europe,  Financial  Times,  01.24.12;   Australia  GDP  Grows  at  Half  the  Pace  Economists  Forecast,  Bloomberg,  03.07.12  
  • 5. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS "#$%$AL#$),?$$Z " 234563C74849:7N@4H;O:KJ4@C76K;;4677C3C@6;CK3:NO;3M;O@4<NO4<;;OC@CK;4J./0.S68E@C;<@8;46K;@48NC@;@C8E:8./01F"9C@N:8N 96@BC;KH:33748=8<C;43C6E;OCN@4H;O949C8;<9SH:;OC74849:767=G:;M:8ECGC34DCEC74849:CKCXDC7;CE;4@C96:8K<5D6@F +C632&[2@4H;O+6;CK]U#O68NC^!C3C7;A6@BC;K +C632&[2@4H;O+6;CK]U#O68NC^ MP!!"_%*5B`"" MP!M"_7&1LB`"" MP!K"_7&1LB`" #4<8;@M_ ./00]CK;F^ ./0.]D@4`F^ ./01]D@4`F^ +CN:48 #O:86 *A"+L#*! L8E:6 P@6W:3 MBdN" KBbN" bBMN" #686E6 MBKN" MBPN" MBeN" +<KK:6 )F!F !BN" MB!N" MBKN" P@6W:3 "A"* Q@687C !BN" UPB!N" PB[N" *<K;@63:6 2C@968M KB!N" PBeN" !BbN" )F!F L;63M PBKN" U!BeN" UPBMN" +<KK:6 aBKN" KBeN" KBdN" #686E6 /012)0"/A-"/&1J59" )FZF PBdN" PBbN" !BeN" _MP!M"7&1LB`]"MBN" 6D68 "<@4W48C !BbN" UPBbN" PB[N" *[*# 2C@968M *<K;@63:6 MBPN" MBdN" KB!N" )FZF #O:86 dBMN" [BPN" [BbN" Q@687C L8E:6 eB[N" BMN" [BPN" 6D68 UPBdN" !BMN" MB!N" L;63M *[*# aBbN" aBdN" bBN" V.U V0U /U 0U .U 1U aU bU >U TU cU dU 0/U I$+?& KBPN" MBN" KBeN" 61>&(%]"R^6"/012)0"R?*895"&%71&5*"_#7&0"MP!M`"b"
  • 6. Global Labor Market Update SECOND QUARTER l 2012
  • 7. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS     Employment  trends  in  the  Americas  are  generally  posi=ve,  but  somewhat  subdued  by  uncertain=es  stemming  from  the  global  economic   climate.  The  pace  of  hiring  is  expected  to  remain  steady  in  2012  and  improve  in  2013,  causing  unemployment  rates  to  edge  downward.     UNITED  STATES   BRAZIL   CANADA   MEXICO   Although  the  U.S.  labor  market   Seasonal  impacts  liged  the   Canada’s  labor  market  is  on  a   The  unemployment  rate  in   began  the  year  on  a  posi:ve   unemployment  rate  in  Brazil  in   moderate,  if  uneven,  growth   Mexico  was  steady  in  early  2012   note,  employment  trends  have   the  first  part  of  2012,  but   path  in  2012,  with  job  gains   as  labor  force  increases  offset   begun  to  weaken  somewhat,   unemployment  remains  at     broadly  outpacing  losses.   private  sector  employment  gains.   sugges:ng  that  the  hiring   historically  low  levels  and  is  not   Budgetary  :ghtening  will   The  economy  is  expected  to  add   momentum  may  be  slowing.   forecast  to  grow  significantly.   con:nue  to  shrink  public  sector   450,000  formal  jobs  in  2012;   Nevertheless,  employment  gains   The  :ght  labor  market  is  pushing   employment,  leaving  the  private   formal  employment  only   are  s:ll  expected  to  average  a   up  wages  and  fueling  infla:on.   sector  to  keep  up  the  hiring   accounts  for  around  one-­‐third  of   stronger  pace  in  2012  than  2011.     momentum.   the  labor  force  in  Mexico.     Average  Annual  Unemployment  Rate   10%   8%   8.9%   8.3%   8.1%   7.5%   7.3%   2011   6%   6.8%   6.0%   6.2%   5.7%   2012  (p)   4%   5.2%   4.8%   4.6%   2013  (p)   2%   0%   U.S.   Brazil   Canada   Mexico   Sources:  IHS  Global  Insight  reports  (April  2012);  Brazil  Jobless  Rate  Rises  Unexpectedly  in  March,  Reuters,  04.26.12;  Brazil  Unemployment  Rate  Edged  Higher  in  February,  Wall  Street  Journal,  03.22.12  7  
  • 8. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  EMEA     Low  business  confidence  and  government  austerity  measures  con=nue  to  constrain  hiring  in  the  Eurozone  and  beyond.  The  cau=ous   approach  to  employment  is  expected  to  con=nue  throughout  2012,  with  only  modest  improvements  forecast  for  2013.   GERMANY   FRANCE   UNITED  KINGDOM   RUSSIA   The  German  labor  market   Unemployment  has  risen  steadily   Although  recent  data  suggests   The  labor  market  in  Russia  is   con:nues  to  show  resilience,  and   over  the  past  year,  and  in  March   some  easing  in  the  challenging   stable,  with  slow  improvements   is  expected  to  remain  much   2012  hit  a  twelve-­‐year  high.  The   U.K.  labor  market,  unemployment   in  employment  projected  for   healthier  than  most  others  in  the   labor  market  is  not  expected  to   is  forecast  to  con:nue  to  trend   2012.  Russian  companies  are   region.  Job  gains  have  been   improve  in  the  short  term  as  low   higher  in  2012  due  to  weak   showing  some  cau:on  in  hiring   steady,  and  the  unemployment   business  confidence  and  :ght   economic  ac:vity,  private  sector   as  a  result  of  the  European  crisis.       rate  con:nues  to  fall  to   fiscal  condi:ons  limit  hiring.   cau:on,  and  public  sector  cuts.     historically  low  levels.   ITALY   With  the  economy  in  recession   and  con:nuing  to  deteriorate,   Average  Annual  Unemployment  Rate   the  weak  demand  for  labor  is   forecast  to  persist  throughout   2012.  Prospects  for  new  job   10%   crea:on  are  dim  in  both  the   9.7%   9.9%   9.8%   9.3%   9.6%   private  and  public  sector.   8%   9.0%   8.9%   8.1%   8.3%   2011   6%   7.1%   6.7%   6.5%   6.1%   5.7%   5.4%   2012  (p)   4%   2013  (p)   2%   0%   Germany   France   U.K.   Russia   Italy   Sources:  IHS  Global  Insight  reports  (April  2012);  Mixed  Jobs  Outlook  Worrying  Russians,  Moscow  News,  03.06.12    8  
  • 9. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  APAC     APAC  labor  markets  remain  healthy,  but  may  face  challenges  in  2012.  The  cool  global  economic  climate  is  a  risk  to  export  growth,  and   domes=c  demand  is  soiening;  as  a  result,  APAC  countries’  resilient  employment  performance  may  falter  somewhat.     CHINA   JAPAN   INDIA   AUSTRALIA   China’s  unemployment  rate   Employment  trended  downward   The  formal  sector  is  projected  to   Labor  market  condi:ons  are   remains  steady  and  well  below  the   in  the  first  quarter  of  2012  as   add  around  1.6  million  jobs  in   expected  to  remain  favorable   government’s  4.6%  target  for  2012.   economic  growth  remained   2012,  a  slight  increase  from  the   with  some  fluctua:ons  in  2012,   However,  the  country  faces   sluggish.  Labor  market  demand  is   1.4  million  jobs  created  in  2011.   as  employers  and  workers   numerous  employment  challenges   expected  to  slowly  accelerate   The  healthcare,  hospitality  and  IT   navigate  an  uncertain  economic   including  rising  wages,  a  significant   throughout  the  year,  and  the   sectors  have  the  most  op:mis:c   climate.  Investment  in  the   skills  gap,  and  the  need  to  create   jobless  rate  will  begin  to  improve   hiring  outlooks.   resources  sector  con:nues  to   25  million  jobs  this  year  to  keep  up   in  late  2012  or  early  2013.   drive  labor  demand.   with  labor  force  trends.           Average  Annual  Unemployment  Rate     10%   9.4%   9.3%   9.0%   8%   2011   6%   2012  (p)   5.1%   5.1%   5.3%   5.1%   4%   4.6%   4.8%   2013  (p)   4.1%   4.2%   4.1%   2%   0%   Japan   China   India   Australia   Sources:  IHS  Global  Insight  reports  (April  2012);  China  faces  huge  employment  pressure,  Xinhua  Economic  News  Service,  03.07.12;  Jobs  stable  but  there  may  be  trouble  ahead,  Shanghai  Daily,  04.26.12;  India  Inc.  op:mis:c  on  2012  hiring,  India   Infoline,  03.05.12;  Japan  Mar  jobless  rate  stays  at  4.5%,  payrolls  on  downtrend,  The  Main  Wire,  04.26.12    9
  • 10. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  SPOTLIGHT:    YOUTH  EMPLOYMENT     opportuni=es  for  young  people  diminished  during  the  recession,  and  remain  scarce  during  the  current  climate  of  economic  uncertainty.   Job   Businesses  and  policymakers  are  looking  to  address  the  issue  in  order  to  avoid  long-­‐term  social  and  financial  consequences.       AN  ISSUE  IN  BOTH  DEVELOPED  AND  EMERGING  MARKETS   Youth  unemployment  is  at  a  historic  high  in  the  EU  (22.6%  in  March  2012)  and  in   Youth  Unemployment  Rates  by  Region,  2011  (e)   many  European  countries.  Some  of  the  highest  youth  unemployment  rates  are   found  in    markets  at  the  center  of  the  financial  crisis  such  as  Spain,  Greece,   WORLD   12.7%   Portugal,  and  Italy,  and  in  Middle  East  and  North  African  countries.     In  the  U.S.,  youth  unemployment  has  been  steadily  declining  from  a  high  of  over   19%  in  late  2009,  but  it  is  s:ll  twice  the  level  of  overall  unemployment.  East  and   East  Asia   8.8%   South  Asia  show  the  lowest  youth  unemployment  rates  among  global  regions,  but   these  rates  are  also  more  than  twice  the  regions’  overall  unemployment  rates.   South  Asia   9.9%   YOUTH  UNEMPLOYMENT  IS  A  GLOBAL  PHENOMENON   According  to  the  ILO,  nearly  75  million  youth  around  the  world  are  unemployed   Sub-­‐Saharan  Africa   12.8%   and  the  youth  unemployment  rate  was  12.7%  in  2011  –    figures  that  are  not   projected  to  improve  in  2012.  The  ILO  and  the  European  Commission  are  among   the  ins:tu:ons  that  have  launched  ini:a:ves  aimed  at  iden:fying  and   SE  Asia  &  Pacific   13.4%   implemen:ng  solu:ons  to  the  youth  unemployment  crisis.   Central  &  SE  Europe  &  CIS   17.7%     Current  Youth  Unemployment  Rates,  Selected  Countries     Developed  Economies  &  EU   17.9%     60%   51.1%   50%   35.9%   Middle  East   26.2%   40%   26.7%   25.0%   30%   20.0%   21.8%   16.4%   20%   8.6%   North  Africa   27.1%   10%   0%   0%   5%   10%   15%   20%   25%   30%   U.S.   U.K.   France   Poland   Italy   Spain   Australia   Japan   Sources:  ILO  Global  Employment  Trends  2012;  US  Bureau  of  Labor  Sta:s:cs;    EU  Employment  and   Current  youth  unemployment  rates,  seasonally  adjusted:  US  –  April  2012;  Australia,  EU  countries,  Japan  –  March   Social  Situa:on;  UK  Office  of  Na:onal  Sta:s:cs;  Sta:s:cs  Bureau  of  Japan  ;  Western  Australia  Bureau   2012;  UK  –  Dec  2011-­‐Feb  2012   of  Sta:s:cs;  Unemployment  crisis  spurs  global  youth  summit,  GlobalPost,  04.18.12  10  
  • 11. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LEGISLATIVE  UPDATE     Legisla=on  that  seeks  to  improve  labor  market  flexibility  is  a  key  priority  in  European  countries  such  as  Italy  and  Spain  that  have  rigid   labor  laws  and  are  experiencing  severe  economic  turmoil.  Several  countries  including  Japan  and  South  Africa  have  introduced   legisla=on  that  would  improve  condi=ons  for  temporary  workers.  And  encouraging  immigra=on  in  order  to  alleviate  skills  shortages  is   the  goal  of  new  direc=ves  in  the  European  Union  and  Australia.       EUROPE   A  new  direc:ve  requires  EU  member  states  to   CANADA   facilitate  migra:on  of  non-­‐EU  ci:zens,  including   The  government  announced  that  the   implemen:ng  a  single  permit  procedure  and   JAPAN   re:rement  age,  currently  at  age  65,  will  be   A  new  revision  to  the  worker  dispatch   gran:ng  equal  working  condi:ons  and  rights.   gradually  increased  to  age  67  over  the   Members  have  un:l  the  end  of  2013  to  comply.   law    aims  to  improve  the  treatment  of   next  ten  years.   temporary  workers  in  Japan.  The  bill   prohibits  temporary  employment  of  30   ITALY   days  or  less.  It  also  mandates  more   The  cabinet  approved  labor  reforms  that  are   transparency  in  fees  and  considera:on   UNITED  STATES   designed  to  create  a  more  flexible  and   for  equal  wages  for  temporary  work.   The  Jumpstart  Our  Business   dynamic  labor  market.  A  new  decree  that   Startups  (JOBS)  Act,  a  bill   eases  restric:ons  on  the  use  of  temporary   that  will  make  it  easier  for   employees  has  also  been  approved.   CHINA     startup  companies  and  small   The  state  council  draged  new  regula:ons   businesses  to  raise  funds,   that  would  strengthen  benefits  and   was  signed  into  law.     protec:ons  for  female  employees.  A   SPAIN   Significant  reforms  that  aim  to  make  the  labor  market   number  of  ci:es  have  also  introduced  new   more  flexible  were  approved  by  the  government.   rules  designed  to  protect  women’s   Among  the  key  measures  are  those  that  seek  to  reduce   employment  rights.   the  cost  and  complexity  of  employee  termina:on,  and   give  companies  greater  power  to  opt  out  of  collec:ve   bargaining  agreements.   AUSTRALIA   Recruitment  agencies  will  now  be  allowed  to   SOUTH  AFRICA   sponsor  overseas  workers  to  work  in  Australia.   New  legisla:on  would  require  equal  pay  for  temporary  workers  on  fixed-­‐ Previously,  only  the  companies  that  directly   term  contracts.  Workers  that  are  employed  for  more  than  six  months  also   employed  overseas  workers  were  allowed  to   will  be  considered  as  permanent  employees  under  the  new  bill.   act  as  sponsors.     Sources:  Global  Insight;  SIA  WE  Legs  and  Reg  Advisor,  02.12;  SIA  Daily  News;    Interna:onal  Law  Office;  The  labour  reform:  What  are  the  main  changes  for  companies  in  Spain?  Clifford  Chance,  02.12;  Japan  Economic  Newswire,   03.28.12;  Forbes.com,  04.05.12;  Japan  Interna:onal  Labour  Federa:on,  04.06.12      11  
  • 12. U.S. Labor Market Overview SECOND QUARTER l 2012
  • 13. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  EMPLOYMENT  CONDITIONS     MODEST  FIRST  QUARTER  HIRING   U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE   The  U.S.  labor  market  con:nued  to  add  jobs  in   Unemployment  Rate  (%)   the  first  part  of  2012,  averaging  more  than   Employment  (000’s)   600   11   200,000  new  jobs  per  month  in  the  first  four   300   10   months  and  recording  the  strongest  first   9   0   quarter  performance  in  six  years.  The   8   unemployment  rate  also  con:nued  to  inch   -­‐300   7   down,  reaching  8.1%  in  April.   -­‐600   6   -­‐900   5   SOFTENING  TRENDS  A  CONCERN   Jan-­‐09   Jan-­‐10   Jan-­‐11   Jan-­‐12   Apr-­‐09   Jul-­‐09   Apr-­‐10   Jul-­‐10   Apr-­‐11   Jul-­‐11   Oct-­‐09   Oct-­‐10   Oct-­‐11   Hiring  trends  weakened  throughout  the   quarter,  giving  rise  to  fears  that  the  posi:ve   momentum  in  the  U.S.  labor  market  may  be   Non-­‐Farm  Employment   Private-­‐Sector  Employment   Unemployment  Rate   slowing.  And  the  recent  improvements  in  the   unemployment  rate  were  largely  aoributable  to   declines  in  the  labor  force  rather  than  any   EMPLOYMENT  OVERVIEW   significant  strengthening  in  the  jobs  market.     LACKLUSTER  GROWTH  PROSPECTS   APR   MAR   FEB   JAN   DEC   The  tepid  U.S.  economic  performance  in  the   first  quarter  of  the  year  is  expected  to  improve   Total  non-­‐farm  employment  growth   115K   154K   259K   275K   223K   only  slightly  throughout  the  year.  The  uncertain   global  economic  climate  and  concerns  over   Private  employment  growth   130K   166K   254K   277K   234K   higher  oil  prices  represent  addi:onal  short-­‐term   threats  to  future  job  gains.   Unemployment  rate   8.1%   8.2%   8.3%   8.3%   8.5%   LONG-­‐TERM  CHALLENGES   Despite  modestly  posi:ve  hiring  trends,  the  U.S.  jobless  rate  remains  stubbornly  high  and  employment  has  yet  to  recover  to  its  pre-­‐recessionary  levels.   Perhaps  the  biggest  challenge  over  the  coming  months  and  years  will  be  bringing  the  na:on’s  unemployment  rate  back  down  into  the  5-­‐6%  range  that   was  once  taken  for  granted.  At  the  current  rates  of  economic  growth  and  job  crea:on,  the  labor  market  recovery  is  likely  to  be  a  very  slow  process.   Sources:  Bureau  of  Labor  Sta:s:cs  13  
  • 14. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  LABOR  MARKET  -­‐  SUPPLY  AND  DEMAND     POSITIVE  JOB  DEMAND  CONTINUES     U.S.  labor  demand  con:nued  on  an  upward  trend  in   U.S.  MARKET  -­‐  MONTHLY  LABOR  DEMAND  VS.  LABOR  SUPPLY   the  first  quarter  of  2012.  Online  adver:sed  job   vacancies  grew  by  over  90,000  in  April  2012,  the  figh   16,000   8,000   consecu:ve  monthly  rise,  leading  to  the  highest  level   of  labor  demand  since  data  collec:on  began  in  2005.   The  labor  supply/demand  ra:o  fell  to  2.7  in  April,   14,000   7,000   signifying  that  there  are  fewer  than  3  people   unemployed  for  every  job  vacancy.   No.  of    Online  Job  Ads     12,000   No.  of  Unemployed     6,000   MIDWEST  LEADS  JOBS  RECOVERY     (in  000s)   (in  000s)   Since  the  end  of  the  recession  in  mid-­‐2009,  the   10,000   Midwest  has  shown  considerable  growth  in  job   5,000   demand.  Nine  metropolitan  areas  have  seen  online   adver:sed  vacancies  grow  more  than  100%  in  that   8,000   :me  period,  led  by  Cleveland,  Minneapolis-­‐St.  Paul,   4,000   Detroit,  and  Columbus.     6,000   DEMAND  IMPROVES  FOR  OFFICE,  LEGAL  WORKERS     3,000   In  the  first  three  months  of  2012,  demand  increased   4,000   for  legal  and  office/administra:ve  support  workers,   two  occupa:ons  that  saw  sluggish  growth  in  2011.   2,000   2,000   Jul  08   Jul  09   Jul  10   Jul  11   Jan  09   Jan  10   Jan  11   Jan  12   Apr  08   Apr  09   Apr  10   Apr  11   Apr  12   Oct  08   Oct  09   Oct  10   Oct  11   Demand  for  these  posi:ons  is  highest  in  large  states,   including  California,  Texas,  and  Florida.   #  of  unemployed  workers   #  of  online  ads         “Labor  demand  con:nues  its  five-­‐month  upward  trend,  which  has  averaged  about  113,000  vacancies  per   month.  This  is  welcome  news  for  unemployed  workers  or  those  looking  to  change  jobs.”     —    Judy  Shelp,  Vice  President,    The  Conference  Board,  April    30,  2012   Sources:  Conference  Board  Help  Wanted  OnLine,  Bureau  of  Labor  Sta:s:cs  14  
  • 15. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  LABOR  MARKET  SPOTLIGHT:  2010-­‐2020  EMPLOYMENT  PROJECTIONS     HEALTHCARE  AND  SERVICE  OCCUPATIONS  WILL   Fastest  Growing  Occupa=onal  Groups,  2010-­‐2020  (p)   40%   LEAD  FUTURE    U.S.  JOB  GROWTH     2010-­‐2020  (p)   2006-­‐2010   30%   35%   The  U.S.  economy  is  projected  to  add  20.5  million   new  jobs  from  2010-­‐2020,  a  14.3%  growth  rate,   20%   27%   26%   13%   24%   according  to  the  Bureau  of  Labor  Sta:s:cs.   22%   22%   8%   7%   17%     10%   16%   5%   2%   1%   Healthcare,  personal  care,  and  community  and   social  service  occupa:ons  are  projected  to  see   0%   the  fastest  growth  from  2010-­‐2020.  The  largest   -­‐1%   -­‐10%   number  of  new  jobs  will  be  in  healthcare,  office   and  administra:ve  support,  and  sales   -­‐20%   occupa:ons.     -­‐30%   -­‐24%     Healthcare   Personal  Care   Healthcare   Community   Construc:on   Computer  and   Business  and   Life,  Physical   DEMOGRAPHIC  CHANGES  AND  ECONOMIC   Support     and  Service   Prac::oners   and  Social   and  Extrac:on   Mathema:cal   Financial   and  Social   SHIFTS  ARE  DRIVING  GROWTH  TRENDS   Service   Opera:ons   Science   The  changing  demographics  of  the  U.S.   popula:on,  in  par:cular  the  aging  baby  boom   Occupa=onal  Groups  with  Largest  Numeric  Growth,     genera:on,  are  a  key  driver  in  the  growth  of   4   2010-­‐2020  (p)   Millions   many  occupa:ons,  in  par:cular  healthcare-­‐ related  areas.     4   3.5     3   Economic  shigs  are  also  behind  some  growth   3   trends,  as  many  occupa:ons  will  be  recovering   2   2.3   jobs  that  were  lost  during  the  recession.  For   example,  construc:on  saw  the  biggest  loss  of  jobs   2   1.9   from  2006-­‐2010;  even  with  the  22%  growth   1   1.4   1.4   1.3   1.3   1.3   projected  from  2010-­‐2020,  the  sector  won’t  reach   1   pre-­‐recessionary  employment  levels.       0   Healthcare   Office  and   Sales  and   Construc:on   Educa:on,   Personal  Care   Transporta:on   STEM     Prac::oners   Administra:ve   Related   and  Extrac:on   Training  and   and  Service   and  Material   Occupa:ons*     and  Support   Support   Library   Moving   *STEM  occupa:on  groups:  Computer  and  Mathema:cal;  Life,  Physical,  and  Social  Science;  Architecture  and  Engineering   Source:  US  Bureau  of  Labor  Sta:s:cs  15  
  • 16. Workforce Solutions Industry Insight SECOND QUARTER l 2012
  • 17. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KGWI:  ACQUISITION  AND  RETENTION  IN  THE  WAR  FOR  TALENT     Findings  from  the  2012  Kelly  Global  Workforce  Index  (KGWI)  show  that  in  the  period  aier  the  global  financial  crisis,  workers  are  in  a  state   of  uncertainty.  Employees  have  experienced  unprecedented  economic  turmoil;  many  are  restless  and  are  ac=vely  looking  for  new   opportuni=es.  However,  employees  across  regions  and  genera=ons  show  differing  desires  and  mo=va=ons  regarding  job  choices.     EMPLOYEES  LOOKING  FOR  CHANGE   Globally,  two-­‐thirds  of  workers  (66%)  intend  to  look  for  a  job  with  another   Top  factors  driving  the  decision  to  accept  one  job/posi=on   organiza:on  within  the  next  year,    a  significant  increase  from  2009,  when   over  another  (By  genera=on)   59%  intended  to  look  for  a  job  elsewhere.  The  dissa:sfac:on  is  most   pronounced  in  the  Americas,  where  67%  intend  to  look  for  a  new  job,   compared  with  only  45%  in  2009.     39%   34%   41%   48%   Personal   MOTIVATIONS  BEHIND  JOB  CHOICE   fulfillment/   Several  factors,  including  lack  of  opportunity,  low  salaries,  and  poor   work-­‐life  balance   management,  cause  workers  to  look  for  new  jobs.  However,  these  drivers   differ  by  genera:on.  Work/life  balance  is  the  predominant  considera:on   41%   Personal  growth/   among  Baby  Boomers  evalua:ng  jobs.  But  for  Gen  Y,  the  leading   36%   34%   advancement   considera:on  is  personal  growth/  advancement—an  outlook  that  reflects   25%   their  near-­‐term  career  priori:es.       Compensa:on/   19%   20%   19%   19%     benefits   Do  you  intend  to  look  for  a  job  with  another  organiza=on   within  the  next  year?  (%  Yes,  by  region)   Total   Gen  Y   Gen  X   Baby  Boomer   2009   2012   Top  factors  that  would  most  likely  cause   80%   employees  to  leave  their  jobs   60%   •  Lack  of  opportuni:es  for  advancement   66%   67%   67%   67%   59%   59%   62%   40%   45%   •  Poor  salary/benefits   20%   •  Poor  management   0%   •  Inadequate  work/life  balance   All  Countries   Americas   EMEA   APAC   Source:  Acquisi:on  and  Reten:on  in  the  War  for  Talent,  Kelly  Global  Workforce  Index,  April  2012  17  
  • 18. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KGWI:  ACQUISITION  AND  RETENTION  IN  THE  WAR  FOR  TALENT     The  2012  Kelly  Global  Workforce  Index  findings  suggest  that  organiza=ons  seeking  to  arract  and  retain  the  most  highly  talented   candidates  need  to  do  more  than  just  focus  on  their  HR  performance;  brand  recogni=on  and  corporate  culture  are  central  to  the  way  they   are  perceived  in  the  broader  labor  market.  Employers  also  need  to  understand  the  role  that  social  media  plays  in  candidates’  job  searches.     FACTORS  THAT    INFLUENCE  JOB  DECISIONS   Employees  look  at  various  criteria  when  they  are  considering  a  new  job;  chief  among  these  are   intangibles  such  as  the  employer’s  reputa:on,  market  presence,  and  corporate  culture.     Top  Factors  Used  to  Evaluate   The  employer’s  social  media  presence  ranks  low  among  aoributes  that  influence  employee’s   Poten=al  Employers     job  decisions,  but  the  individual’s  own  social  media  network  factors  highly.  This  is  par:cularly   true  in  APAC  and  among  Gen  X  and  Gen  Y  workers.       Ø  Brand/  Reputa:on     Ø  Loca:on   Do  you  use  your  social  media  network  when  making  career/   Ø  Flexible  Arrangements   employment  decisions?  (%  Yes  by  region  and  genera=on)   70%   60%   58%   Top  Organiza=onal  Arributes  that   50%   Influence  Job  Decisions   40%   44%   45%   41%   40%   40%   30%   Ø  Corporate  Culture   33%   20%   Ø  Strong  Market  Presence   10%   Ø  Financial  Performance   0%   Total   Americas   EMEA   APAC   Gen  Y   Gen  X   Baby   Boomer   Source:  Acquisi:on  and  Reten:on  in  the  War  for  Talent,  Kelly  Global  Workforce  Index,  April  2012  18  
  • 19. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS FUTURE  OF  WORK  IN  ADVANCED  ECONOMIES     The  McKinsey  Global  Ins=tute  has  iden=fied  five  long-­‐term  trends  that  are  influencing  employment  dynamics  in  advanced  economies,  and   that  will  con=nue  to  shape  the  way  the  work  is  done  in  the  future.    Understanding  and  addressing  these  structural  challenges  will  be  a   cri=cal  component  of  forward-­‐thinking  talent  management  strategies.     FIVE  KEY  WORKFORCE  TRENDS  IN  ADVANCED  ECONOMIES   •  In  the  past,  automa:on  transformed  produc:on  work  and  jobs  that  involve  simple  transac:ons.   Technology  is   Now  technology  is  changing  higher-­‐skilled,  knowledge-­‐based  jobs.     23%   changing  the  nature   •  Technology  can  help  raise  produc:vity  in  high-­‐skilled  jobs  and  allow  knowledge  workers  have   of  work   more  flexibility  in  where,  when,  and  how  they  carry  out  their  jobs.     21%   21%   Growing  mismatches   •  Despite  high  overall  unemployment  rates  in  most  advanced  economies,  many  employers  say  they   16%   between  worker   are  having  difficul:es  in  finding  enough  workers  with  specific  skills.     skills  and  jobs   •  This  disparity  is  projected  to  increase  in  the  future,  with  the  supply  of  highly    skilled  workers  not   13%   growing  enough  to  meet  the  increasing  demand  for  them.   11%   Geographic   •  Places  with  the  highest  unemployment  may  be  experiencing  low  job  crea:on,  and  loca:ons  where   mismatches   companies  are  hiring  may  lack  enough  workers  with  the  desired  skills.     between  jobs  and   •  Lack  of  mobility  is  exacerba:ng  geographic  mismatches:  in  the  US,  labor  mobility  is  at  a  50-­‐year   workers   low,  and  the  ci:zens  of  many  other  developed  na:ons  are  far  less  mobile  than  Americans.     •  Groups  that  are  currently  underrepresented  in  the  employment  picture  such  as  young  people,   Growing  pools  of   older  workers,  and  women  have  the  poten:al  to  help  bridge  the  talent  gap.       untapped  talent   •  Countries  face  the  complex  challenges  of  high  youth  unemployment,  keeping  older  workers   employed,  and  encouraging  labor  force  par:cipa:on  rates  of  women.   •  The  polarizing  trends  in  job  crea:on  and  employment  are  pushing  up  household  incomes  at  the   Disparity  in  income   higher  end  of  the  scale  and  leading  to  stagnant  or  even  declining  incomes  for  poorer  households.   growth   •  This  phenomenon,  along  with  shiging  sociological  and  demographic  paoerns,  is  giving  rise  to   rising  income  disparity  in  advanced  economies.   Source:  Help  wanted:  The  future  of  work  in  advanced  economies,  McKinsey  Global  Ins:tute,  March  2012;  OECD,  Removing  obstacles  to  geographic  labour  mobility  19  
  • 20. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS FUTURE  OF  WORK  IN  ADVANCED  ECONOMIES     Labor  markets  in  advanced  economies  have  not  been  able  to  keep  up  with  the  rapid  pace  of  change  caused  by  the  five  workforce  trends   outlined  by  the  McKinsey  Global  Ins=tute.  Business  leaders  will  need  to  find  innova=ve  approaches  to  address  the  challenges  in  finding,   accessing,  and  developing  the  workforce  of  the  future.     POTENTIAL  BUSINESS  STRATEGIES  FOR  THE  CHANGING  WORLD  OF  WORK       Understanding  and  op=mizing  global  supply  chains   23%   21%   •  In  the  past,  companies  have  shiged  opera:ons  to  follow  the  talent  –  moving  where  the  supply   is  abundant  or  where  the  costs  are  low.   21%   •  As  the  dynamics  of  talent  become  more  complex,  successful  workforce  strategies  will  involve  a   16%   greater  understanding  of  global  opportuni:es  and  the  resources  available  in  each  loca:on.     13%   Exploi=ng  technology  to  overcome  skill  and  geographic  mismatches   11%   •  Companies  can  use  technologies  to  adapt  work  to  the  skills  of  the  local  labor  supply,  or  move   work  electronically  to  available  workers.     •  Technology  and  flexible  work  arrangements  can  also  allow  companies  to  bring  in  talent  as   needed  and  to  tap  into  pools  of  underemployed  workers.   Making  human  capital  development  a  compe==ve  advantage   •  Companies  may  make  the  strategic  decision  to  invest  in  training  and  other  programs  to  help   create  the  skilled  workforces  and  talent  pipelines  that  they  need.   •  The  ability  to  fill  talent  gaps  more  effec:vely  may  become  an  important  compe::ve  advantage   in  some  industries,  par:cularly  those  with  the  greatest  skills  shortages.   Source:  Help  wanted:  The  future  of  work  in  advanced  economies,  McKinsey  Global  Ins:tute,  March  2012  20  
  • 21. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KELLY  KNOWLEDGE     Kelly  offers  a  complete  library  of  white  papers,  reports,  case  studies,  and  webcasts  that  advance  the  discussion  and  thinking  around   current  trends,  strategies,  and  issues  impac=ng  global  talent  management.         TITLE   PRESENTED  BY:   DESCRIPTION   The  Employment  Gap:   Alan  Edwards,  Vice  President  and   This  webcast  discusses  the  new  dynamics  of  work—addressing   Exploring  Employee  vs.   Product  Leader,  Kelly  Services   the  percep:ons  versus  reali:es  of  employment  expecta:ons.   Employer  Expecta=ons   One  year  ago,  talent  management  was  third  on  CEOs’  list  of   Turning  the  Downside   Teresa  Carroll,  SVP,  Centers  of   priori:es;  now  it’s  number  one.  Read  about  the  three  key   Upside     Excellence,  Kelly  Services   challenges  that  have  driven  this  shig  in  this  white  paper.   Trends  in  the  U.S.  light  industrial  sector  have  been  improving   Signs  of  Life:  Four  Reasons   Rolf  E.  Kleiner,  SVP  and  Chief   steadily.  And  if  the  issues  outlined  in  this  E-­‐book  are  anything   U.S.  Manufacturing  is   Innova:on  Officer,  Kelly  Services   to  go  by,  the  posi:ve  signs  could  well  be  the  beginning  of   Making  a  Come  Back   something  bigger.   To  register  for  webcasts  or  for  more  informa:on,  visit  www.kellyocg.com  21  
  • 22. About Kelly Services®Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions.Kelly® offers a comprehensive array of outsourcing and consulting services as well asworld-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clientsaround the globe, Kelly provides employment to more than 550,000 employees annually.Revenue in 2011 was $5.6 billion. Visit kellyservices.com and connect with us on Facebook,LinkedIn, & Twitter. Click to download The Talent Project, our free iPad app.A Kelly Services ReportAll trademarks are property of their respective owners. An Equal Opportunity Employer © 2012 Kelly Services, Inc. X0958kellyservices.com