Q3 2012 Global Talent Market Quarterly
 

Q3 2012 Global Talent Market Quarterly

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This report delivers valuable insights about global labor market trends.

This report delivers valuable insights about global labor market trends.

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Q3 2012 Global Talent Market Quarterly Q3 2012 Global Talent Market Quarterly Presentation Transcript

  • Global Talent Market Quarterly THIRD QUARTER l 2012
  • 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 • Global Labor Supply and Demad Forecasts • Talent Challenges in Rapid Growth Markets • Social Media: Business or Pleasure? • Kelly Knowledge
  • Global Economic Situation THIRD QUARTER l 2012
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  ECONOMIC  BRIEFING     The  global  economy  has  hit  a  soS  patch  in  2012,  as  contrac?on  in  several  European  markets  and  slowing  in  India  and  China  is  leading  to   muted  economic  ac?vity  worldwide.  Emerging  markets  and  the  APAC  region  con?nue  to  lead  the  growth  trend,  despite  some  weakness.         AMERICAS   EMEA   APAC   The  global  economic  slowdown  is  expected  to   The  Eurozone  crisis  con?nues  to  drag  down   Low  export  demand  and  cooling  growth  in   cause  sluggish  growth  across  the  Americas   economic  growth  across  most  of  the  region.   China  and  India  have  soSened  the  APAC   region  through  2013.  Stronger  economic   Gradual  recovery  is  expected  to  begin  in  2013.   outlook  for  2012-­‐2013,  but  healthy  domes?c   ac?vity  is  forecast  to  resume  in  2014.   demand  is  helping  to  prop  up  many  markets.   Eurozone   Canada   Economic  growth  in  many  Eurozone  countries  is   Japan   Modest  growth  of  around  2%  is  predicted  to   barely  posi:ve,  while  markets  including  Italy,   Economic  growth  was  surprisingly  strong  in  the   con:nue  through  2013.  Strength  in  the  natural   the  Netherlands  and  Spain  are  sinking  into   first  part  of  2012,  thanks  to  healthy  household   resources  sectors  is  being  tempered  by   recession.  Improvements  are  expected  in  2013,   spending  and  con:nued  recovery  efforts.   government  austerity  measures  and  consumer   but  significant  growth  will  hold  off  un:l  2014.   Growth  is  expected  to  remain  moderate   and  business  cau:on  in  the  face  of  uncertain   throughout  the  rest  of  the  year  and  in  2013.   global  economic  condi:ons.   U.K.   GDP  growth  is  expected  to  resume  in  the  U.K.  in   China   U.S.   the  second  half  of  2012  aZer  three  quarters  of   Second  quarter  growth  decelerated  to  7.6%,   The  U.S.  economy  con:nues  to  expand  at  a   contrac:on.  The  economy  is  expected  to   the  lowest  rate  in  nearly  three  years.  S:mulus   modest  pace,  with  2%  growth  projected   con:nue  to  recover  gradually    in  2013  and   efforts  are  expected  to  revive  the  economy  in   through  2013.  Future  gains  depend  on  both   2014,  in  step  with  the  rest  of  Western  Europe.   the  second  half,  but  a  return  to  sustained  long-­‐ term  growth  will  require  structural  reforms.   the  health  of  the  global  economy  and  policy   Central  and  Eastern  Europe   measures  following  the  2012  elec:on.   India   Reduced  demand  from  Western  Europe  will   La?n  America   con:nue  to  dampen  economic  performance   The  economy  has  lost  some  momentum  due  to   Economic  ac:vity  in  the  region  con:nues  to   through  2013,  but  growth  in  many  of  the   weak  global  demand  and  domes:c  policy   cool  in  2012,  with  the  slowdown  felt  most   region’s  larger  markets  including  Russia,  Turkey   issues,  but  growth  is  projected  to  accelerate  in   heavily  among  export-­‐dependent  countries.   and  Poland  is  expected  to  remain  healthy.     2013  and  strengthen  further  in  2014.   Although  growth  is  expected  to  accelerate   Australia   Middle  East  and  North  Africa   again  in  2013  and  beyond,  policy  adjustments   Australia’s  economy  remains  strong  in  the  face   Despite  ongoing  poli:cal  tensions,  economic   will  also  be  necessary  to  create  and  sustain   of  the  cooler  global  climate,  with  a  sound   momentum  should  accelerate  in  the  region  in   more  robust  growth  levels.     outlook  supported  by  con:nued  growth  in  the   2012-­‐13  as  many  countries  con:nue  to  develop     and  implement  policies  that  foster  growth.   mining  and  natural  resources  sectors.        4   Sources:  IHS  Global  Insight  reports  (July  2012);  Wall  Street  Journal,  07.13.12  and  07.18.12;  Reuters,  05.22.12  and  07.18.12      
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  • Global Labor Market Update THIRD QUARTER l 2012
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS     Posi?ve  employment  trends  con?nue  across  the  Americas  region,  although  the  U.S.  and  Canada  have  seen  some  cooling  in  2012  as  a   result  of  the  global  economic  slowdown.  Cau?ous  hiring  is  expected  to  con?nue  across  most  of  the  region,  leading  to  lower   unemployment  levels  in  the  coming  years.     UNITED  STATES   BRAZIL   CANADA   MEXICO   Robust  job  crea:on  in  the  first   Despite  more  moderate  recent   Canada’s  labor  market  outlook  is   The  official  unemployment  rate   quarter  of  2012  was  replaced  by   economic  growth,  employment   broadly  posi:ve,  as  vacancy  and   in  Mexico  remains  in  the   more  subdued  hiring  in  the   con:nues  to  trend  upwards  and   wage  data  suggest  that  demand   4.5%-­‐5%  range—low  by  regional   second  as  the  labor  market   unemployment  rates  con:nue  to   for  labor  is  healthy.  Fihul  hiring   standards  but  s:ll  higher  than  its   began  to  react  to  the  cooler   fall  in  Brazil  in  2012,  a  sign  that   trends  in  the  first  part  of  2012   pre-­‐recession  level  of  3.5%-­‐4%.   global  economy.  Stronger  ac:vity   employers  remain  confident  and   indicate  that  employers  remain   Gradual  improvement  is   is  expected  in  2013  and  2014  as   are  preparing  for  the  eventual   somewhat  cau:ous  in  light  of  the   expected  as  the  economy   uncertain:es  subside.   economic  upturn.   global  economic  situa:on.   con:nues  to  add  formal  jobs.       Average  Annual  Unemployment  Rate   10%   8%   8.1%   7.8%   7.2%   7.3%   2012  (p)   6%   6.8%   6.5%   5.7%   5.6%   2013  (p)   5.3%   4%   4.8%   4.6%   4.3%   2014  (p)   2%   0%   U.S.   Brazil   Canada   Mexico   Sources:  IHS  Global  Insight  reports  (July  2012);  Reuters,  05.21.12,  06.20.12  and  07.06.12    7  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  EMEA     Weakness  stemming  from  the  European  fiscal  crisis  is  keeping  worker  demand  low  and  unemployment  high  across  much  of  the  region,  with   significant  improvements  not  expected  un?l  2014.  Despite  the  uncertain  economic  situa?on,  labor  markets  con?nue  to  perform  well  in   some  countries,  including  Germany,  Russia,  and  the  U.K.     GERMANY   FRANCE   UNITED  KINGDOM   RUSSIA   Job  growth  in  Germany  remains   The  labor  market  con:nues  to   Despite  the  economic  climate,   Unemployment  in  Russia   rela:vely  healthy  in  the  face  of   deteriorate,  with  unemployment   unemployment  has  remained  in   con:nues  to  steadily  decline  as   soZer  economic  condi:ons.  The   in  mid-­‐2012  at  its  highest  level  in   check  in  2012  due  to  increases  in   the  economy  remains  resilient.   country’s  steady  decline  in   more  than  a  decade.  The  new   self-­‐employment  and  part-­‐:me   The  lowest  unemployment  rates   unemployment  has  lost  some   government  is  considering   work,  and  job  crea:on  driven  by   are  seen  in  the  regions  around   momentum  in  2012,  but  is   stricter  legisla:on  surrounding   the  Olympics.  Real  improvements   Moscow  and  St.  Petersburg.       expected  to  resume  its   layoffs  to  help  curb  the  rising   in  the  labor  market  are  not     downward  trend  in  2013.   joblessness.   expected  un:l  2014.   ITALY   Demand  for  workers  is  expected   to  remain  weak  throughout  2012   Average  Annual  Unemployment  Rate   and  2013.  Austerity  plans  have   cut  employment  in  the  public   sector,  and  private  employers   10%   are  hesitant  to  add  jobs  in  the   9.8%   9.8%   10.0%   9.7%   9.9%   9.3%   midst  of  a  declining  economy.   8%   8.5%   8.7%   8.4%   2012  (p)   6%   6.8%   6.6%   6.2%   5.7%   5.4%   2013  (p)   5.2%   4%   2014  (p)   2%   0%   Germany   France   U.K.   Russia   Italy   Sources:  IHS  Global  Insight  reports  (July  2012);  Reuters,  06.28.12;  Reuters,  06.07.12;  BusinessWeek,  07.18.12;  Moscow  Times,  07.23.12;  Agence  France  Presse,  07.02.12    8  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  APAC     Many  APAC  labor  markets  are  showing  some  signs  of  soSness  in  2012,  par?cularly  in  manufacturing  sectors  as  the  region  grapples  with   slowing  export  demand.  However,  healthy  domes?c  demand  and  ongoing  recovery  efforts  are  helping  to  boost  employment  levels  across   the  region,  and  the  labor  market  outlook  for  2013  and  2014  is  posi?ve.       JAPAN   CHINA   INDIA   AUSTRALIA   Employment  growth  and  job   The  labor  market  in  China  is   Employment  growth  in  India  has   Labor  market  performance  is   crea:on  trends  are  posi:ve,  as  the   showing  some  signs  of  weakness.   moderated  somewhat  due  to     healthy  but  uneven  as  global   economy  con:nues  to  recover   Indicators  suggest  that  hiring  is   soZer  economic  condi:ons  both   uncertainty  and  the  strong   following  the  2011  natural   slowing,  and  job  cuts  may  be   at  home  and  globally.  Hiring   currency  constrain  employers’   disasters  and  ongoing  rebuilding   spreading  in  manufacturing  and   inten:ons  are  strongest  in  the   hiring  sen:ments.  The  market  is   efforts  encourage  employers  to   heavy  industry,  amid  more   construc:on  industry  and  the   expected  to  con:nue  along  an   take  on  more  workers.     modest  demand  trends  and  a   service  sector,  par:cularly  retail,   unsteady  path,  with  modest   cooling  economic  climate.     sales  and  healthcare.     employment  gains  offset  by   higher  labor  force  par:cipa:on.   Average  Annual  Unemployment  Rate   10%   9.3%   9.1%   8%   9.0%   2012  (p)   6%   2013  (p)   5.2%   5.1%   4%   4.8%   4.7%   4.6%   4.7%   2014  (p)   4.2%   4.1%   4.0%   2%   0%   Japan   China   India   Australia   Sources:  IHS  Global  Insight  reports  (July  2012);  HSBC  06.07.12  and  07.12.12;  India  Times,  07.23.12;  Indian  Express,  07.23.12;  Financial  Times,  07.11.12;  Reuters,  05.28.12  and  06.28.12  9  9
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  SPOTLIGHT:    AGING  WORKFORCE     organiza?ons  try  to  envision  and  plan  for  the  labor  market  of  the  future,  aging  workforces  are  a  key  considera?on  in  many  countries.  An   As   increasingly  older  labor  force  will  bring  unique  challenges,  including  filling  skills  gaps  and  addressing  re?rement  issues.     NEARLY  A  QUARTER  OF  GLOBAL  WORKERS  WILL  BE  AGE  55+  BY  2030     The  aging  trend  will  be  most  acutely  felt  in  the  advanced  economies  and  China.  In  the   Net  New  Re?rees  per  New  Worker,  2010-­‐2030E*     advanced  economies,  the  share  of  older  workers  in  the  labor  force  will  grow  from  18%  in   2010  to  27%  in  2030.    In  the  most  rapidly  aging  advanced  economies  such  as  Japan  and   2   Germany,  more  than  30%  of  the  labor  force  will  be  55+  in  2030.  In  China,  the  propor:on  of   older  workers  is  expected  to  more  than  double  in  the  next  two  decades.  Even  in  La:n   1.5   America,  which  has  a  rela:vely  young  popula:on,  aging  will  slow  labor  force  growth.   AGING  TREND  WILL  CAUSE  FUTURE  LABOR  FORCE  CHALLENGES   1   The  number  of  re:rees  in  the  world  is  expected  to  grow  by  2.3%  per  year  over  the  next  two   0.5   decades,  more  than  twice  the  annual  labor  force  growth  rate,  leading  to  a  number  of  issues.   Skills  shortages  are  expected  to  intensify  as  educated  workers  re:re.  The  growing  number  of   0   re:rees  will  lead  to  greater  demand  for  social  and  healthcare  services.  And  economies  will   Advanced   China   Other   India   need  to  boost  produc:vity  in  order  to  sustain  growth  rates  with  smaller  labor  forces.  Boos:ng   Economies   Emerging   labor  force  par:cipa:on  rates  of  older  workers  is  one  way  to  help  solve  these  challenges.   Markets   Labor    Force  %   GLOBAL   ADVANCED  ECONOMIES   CHINA   by  Age   10%   14%   8%   22%   13%   18%   15%   27%   Older  (55+)   31%   Prime  (25-­‐54)   Young  (15-­‐24)   60%   62%   65%   69%   70%   64%   72%   68%   62%   28%   22%   32%   16%   12%   10%   13%   11%   6%   1980   2010   2030E   1980   2010   2030E   1980   2010   2030E   Source:  :  The  World  at  Work:  Jobs,  Pay,  and  Skills  for  3.5  Billion  People,  McKinsey  Global  Ins:tute,  2012   *Re:rees  are  defined  as  workers  between  55-­‐70  years  old  who  are  not  likely  to  be  in  the  labor  force  in  2030.  Advanced  Economies  are  those  with  10   GDP  Per  Capita  above  $20,000  (USD  at  2005  PPP).  Other  Emerging  Markets  are  those  with  GDP  Per  Capita  between  $3,000  and  $20,000  including   na:ons  in  Asia  (Philippines,  Indonesia,  Thailand,  Malaysia,  etc.),  La:n  America  (Brazil,  Mexico,  Argen:na,  Peru,  etc.),  the  Middle  East  and  Africa.  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LEGISLATIVE  UPDATE     Several  countries  have  implemented  or  are  considering  changes  to  their  regula?ons  on  temporary  and  contract  workers,  including   Norway,  which  will  bring  its  prac?ces  in  line  with  the  EU’s  Agency  Worker  Direc?ve.  New  and  pending  labor  legisla?on  in  Venezuela,   Saudi  Arabia,  and  Canada  aims  to  increase  labor  force  par?cipa?on,  while  the  new  lower  re?rement  age  in  France  defies  that  trend.   NORWAY   CANADA   Although  not  a  member  of  the   New  regula:ons  expected  to  take  effect   AUSTRIA,  BELGIUM   European  Union,  Norway  will   in  early  2013  will  require  workers   New  legisla:on  requires  employers  to  ensure   implement  the  EU’s  Agency  Worker   equal  treatment  of  temporary  workers.  In   receiving  unemployment  benefits  to  be   Direc:ve  in  2013,  ensuring  the   willing  to  accept  available  jobs  that  are   Belgium,  liZing  restric:ons  on  the  use  of   equal  protec:on  and  treatment  of   lower  paying,  outside  their  field,  or  are   temporary  workers,  par:cularly  in  the  public   temporary  workers.   located  farther  away.   sector,  is  being  reviewed.   FRANCE   SINGAPORE   The  new  French  government  lowered  the   The  Employment  Act  will  be   U.S.   re:rement  age  from  62  to  60  for  workers  with  more   reviewed  in  the  second  half  of   The  Supreme  Court  upheld  the  health   than  40  years  of  social  security  contribu:ons.  The   2012,  with  expected  revisions  to   care  reform  act,  paving  the  way  for  the   move  is  contrary  to  many  other  developed  countries   address  working  condi:ons  and   implementa:on  of  both  the  individual   that  are  increasing  re:rement  ages  in  the  face  of   pay  for  low  wage  employees  and   and  employer  mandates  for  health  care   demographic  and  fiscal  challenges.   contract  workers.   insurance  provision  in  2014.   SAUDI  ARABIA   MALAYSIA   VENEZUELA   Pending  legisla:on  would   A  minimum  wage  law  will  take   The  country’s  new  labor  law  includes   shorten  the  workweek  in   effect  in  Malaysia  for  the  first   provisions  to  eliminate  the  prac:ce  of   the  private  sector  in  order   :me  as  of  January  2013,  and  will   outsourcing,  reduce  working  hours  from  44   to  force  companies  to   likely  be  phased  in  over  the  next   to  40  hours  a  week,  lengthen  maternity   expand  their  workforces.   two  years.  The  minimum  wage   leaves,  and  make  layoffs  more  difficult.   level  is  expected  to  be  modest   and  vary  across  the  country.   Sources:  Global  Insight  06.14.12,  06.07.12;  Reuters,  05.24.12;  SIA  Daily  News,  05.30.12,  06.28.12,  07.17.12;  HRM  Asia  05.28.12;  VenezuelaAnalysis,  05.01.12;  Global  Market  Brief  &  Labor  Risk  Index  Q3  2012,  KellyOCG/Eurasia;  SIA   Legs  and  Regs  Advisor,  April  2012    11  
  • U.S. Labor Market Overview THIRD QUARTER l 2012
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  EMPLOYMENT  CONDITIONS     SECOND  QUARTER  HIRING  DECELERATES   U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE   The  U.S.  job  market  hit  a  soZ  patch  in  the   Unemployment  Rate  (%)   second  quarter  of  2012,  adding  to  concerns  that   Employment  (000’s)   600   11   the  broader  economic  slowdown  has  now   300   10   started  to  affect  U.S.  hiring.  Employment  gains   9   averaged  only  75,000  a  month  in  the  second   0   8   quarter,  three  :mes  slower  than  the  rate  of  job   -­‐300   7   crea:on  in  the  first  three  months  of  the  year.     -­‐600   6   UNEMPLOYMENT  RATE  STAGNANT   -­‐900   5   Jun-­‐09   Mar-­‐10   Jun-­‐10   Mar-­‐11   Jun-­‐11   Mar-­‐12   Jun-­‐12   Dec-­‐09   Dec-­‐10   Dec-­‐11   Sep-­‐09   Sep-­‐10   Sep-­‐11   The  unemployment  rate  remained  at  8.2%  in   June  2012.  Although  lower  than  the  above-­‐9%   rates  seen  in  much  of  2011,    unemployment  has   shown    litle  improvement  since  the  first  of  the   Non-­‐Farm  Employment   Private-­‐Sector  Employment   Unemployment  Rate   year  and  remains  significantly  above  pre-­‐ recession  levels.     EMPLOYMENT  OVERVIEW   DEMAND  GROWS  AND  LAYOFFS  SLOW   The  number  of  job  openings  has  been   JUN   MAY   APR   MAR   FEB   increasing  steadily  since  the  recession  ended,   signaling  a  renewed  demand  trend.  The  pace  of   Total  non-­‐farm  employment  growth   80K   77K   68K   143K   259K   layoffs  has  also  slowed  and  is  now  back  to  its   long-­‐term  average  level.  But  these  encouraging   Private  employment  growth   84K   105K   85K   147K   254K   trends  have  not    yet  translated  into  significant   and  sustained  job  crea:on.     Unemployment  rate   8.2%   8.2%   8.1%   8.2%   8.3%   EMPLOYERS    REMAIN  CAUTIOUS   Some  employers  indicate  that  the  lack  of  hiring  stems  from  the  inability  to  find  skilled  workers,  but  many  simply  remain  hesitant    to  ramp  up  their  full-­‐ :me  workforces  in  the  midst  of  uncertain  economic  and  poli:cal  condi:ons.  The  ongoing  European  crisis,  slowdowns  in  emerging  economies,  and   concern  over  U.S.  policies  con:nue  to  weigh  heavily  on  employers’  minds  and  put  a  damper  on  hiring  plans.     Sources:  Bureau  of  Labor  Sta:s:cs  13  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  LABOR  MARKET  -­‐  SUPPLY  AND  DEMAND     JOB  DEMAND  ON  UPWARD  BUT  UNEVEN  TREND     U.S.  MARKET  -­‐  MONTHLY  LABOR  DEMAND  VS.  LABOR  SUPPLY   Employers  con:nue  to  look  for  more  workers,  as   online  adver:sed  job  vacancies  increased  at  an   average  rate  of  over  100,000  per  month  in  the  first   16,000   10,000   half  of  2012.  The  demand  momentum  remains  fihul,   however,  as  job  ads  were  up  sharply  in  June  but   14,000   9,000   declined  in  May  and  July.     8,000   No.  of    Online  Job  Ads     12,000   No.  of  Unemployed     DEMAND  SURPASSING  PRE-­‐RECESSION  LEVELS   Job  adver:sements  con:nue  to  grow,  with  around   7,000   two-­‐thirds  of  both  U.S.  states  and  metropolitan   (in  000s)   (in  000s)   10,000   areas  now  at  or  above  their  pre-­‐recession  levels  in   labor  demand.  Despite  the  posi:ve  trend,  some   6,000   metro  areas  s:ll  have  unfavorable  supply/demand   8,000   ra:os,  including  Riverside,  Los  Angeles,  and   5,000   Sacramento,  CA;  Las  Vegas;  and  Miami.   6,000   4,000   JOB  MARKET  TIGHTEST  FOR  STEM  OCCUPATIONS   STEM  (science,  technology,  math  and  engineering)   4,000   3,000   workers  con:nue  to  be  in  hot  demand.  Computer   and  mathema:cal  science,  healthcare  prac::oners,   and  architecture/  engineering  are  the  only  large   2,000   2,000   Mar  09   Mar  10   Mar  11   Mar  12   Jun  08   Sep  08   Jun  09   Sep  09   Jun  10   Sep  10   Jun  11   Jun  12   Sept  11   Dec  08   Dec  09   Dec  10   Dec  11   occupa:onal  categories  in  which  adver:sed  job   vacancies  outnumber  job  seekers.   #  of  unemployed  workers   #  of  online  ads           “As  of  June,  almost  half  of  the  occupa:onal  groups  have  Supply/Demand  rates  at  or  below  2.0.  Most  of  these     are  in  professional  categories,  such  as  business  and  finance,  healthcare  professionals,  and  management.”     —    June  Shelp,  Vice  President,  The  Conference  Board,  July  2,  2012   Sources:  Conference  Board  Help  Wanted  OnLine,  Bureau  of  Labor  Sta:s:cs  14  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  LABOR  MARKET  SPOTLIGHT:  BRIDGING  THE  TALENT  GAP     HELP  WANTED  SIGNS  ARE  STILL  UP   Plenty  of  U.S.  companies  are  looking  for  workers.   60%   Effects  of  Job  Vacancies  on  Current  Workers   According  to  a  recent  CareerBuilder  survey,  more  than   50%   one-­‐third  of  employers  say  they  currently  have  open   51%   40%   posi:ons  for  which  they  cannot  find  qualified  candidates.     30%   36%   34%   33%   OPEN  POSITIONS  TAKING  TOLL  ON  WORKERS,  FIRMS   20%   Ongoing  job  vacancies  are  affec:ng  current  workers’   23%   10%   axtudes  and  performances—and  companies’  botom   0%   lines.  Over  half  of  employers  say  that  current  employees   Longer  hours     Overworked/  no   Lower  quality  of   Lower  morale   Loss  in  revenue   are  working  longer  hours.  More  than  one-­‐third  of   work-­‐life  balance   work   employers  reported  that  job  vacancies  have  led  to   overworked  employees,  a  reduced  quality  of  work  and   lower  morale.  Nearly  one-­‐fourth  cited  a  loss  in  revenue   80%   Most  Difficult  Posi?ons  to  Fill   due  to  the  inability  to  fill  open  posi:ons.   60%   EMPLOYERS  NOT  ADDRESSING  SKILLS  GAPS   61%   58%   57%   Employers  report  that  the  most  difficult  posi:ons    to  fill   40%   54%   are  those  in  cri:cal  areas  such  as  C-­‐level  management,   48%   47%   business  development,  engineering,  and  IT.    But  despite   20%   the  shorhalls  in  such  high-­‐profile  areas,  less  than  half   (41%)  of  employers  surveyed  say  they  are  engaging   0%   workers  in  training  or  other  programs  to  help  alleviate  the   Engineering   C-­‐Level   Business   Crea:ve/   Management   IT   talent  crunch.     Development   Design   CANDIDATES  ARE  READY  TO  LEARN,  CHANGE   Job  seekers,  however,  say  that  they  are  more  than  willing   to  gain  the  addi:onal  skills  that  employers  are  looking  for.   Few  Employers  Have   But  Many  Candidates  are  Willing  to  Learn  New   Nearly  two-­‐thirds  of  candidates  (65%)  say  that  they  are   Programs  that  Fill  Skills  Gaps   Skills  and/or  Train  for  a  Job  in  a  Different  Field     extremely  or  very  willing  to  learn  new  skills,  and  more  than   three-­‐fourths  (77%)  say  they  would  be  willing  to  train  for  a   41%   65%   77%   job  in  a  different  field.   Source:  The  Talent  Crunch,  CareerBuilder,  June  2012  15  
  • Workforce Solutions Industry Insight THIRD QUARTER l 2012
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS THE  WORLD  AT  WORK:  GLOBAL  LABOR  SUPPLY  AND  DEMAND  FORECASTS     Labor  forces  around  the  globe  are  being  shaped  by  various  economic,  demographic,  and  cultural  changes  that  are  leading  to  mismatches   in  the  supply  and  demand  for  workers.  A  new  report  by  the  McKinsey  Global  Ins?tute  predicts  that  these  skills  imbalances  will  grow   stronger  in  the  decades  to  come,  unless  decisive  ac?on  is  taken  by  key  stakeholders,  including  policymakers  and  businesses.   23%   SKILLS  IMBALANCES  WILL  INTENSIFY   As  the  world  economy  shiZs  towards  knowledge-­‐  and  service-­‐ 21%   based  employment,  demand  for  trained  and  skilled  workers   21%   con:nues  to  grow.  Global  labor  markets  will  face  the  challenge  of   DEMAND/SUPPLY  GAPS  BY  SKILL  LEVEL,   Low-­‐Skill  Workers   having  too  few  high-­‐  and  medium-­‐skilled  workers,  and  too  many   2020(E)   16%   Total  Surplus     low-­‐skilled  workers  in  the  coming  years.     +89  to  94M   13%   The  shortage  of  high-­‐skilled  workers  will  be  most  severe  in   India   advanced  economies  and  in  China.  China,  despite  a  drama:c  rise   Advanced   -­‐13M   in  educa:onal  atainment,  is  expected  to  see  a  gap  of  23  million   Economies       college-­‐educated  workers  by  2020.     -­‐16  to  -­‐18M   Young   Developing   Industrializa:on  is  expected  to  raise  demand  for  medium-­‐skilled   China     Economies     workers  in  India  and  young  developing  economies,  but  a  shortage   -­‐23M   -­‐31M   of  these  workers  will  arise  due  to  low  rates  of  secondary  educa:on   enrollment  and  comple:on.   India    &  Young   Developing   A  poten:al  surplus  of  around  90  million  or  more  low-­‐skilled   Economies   workers  worldwide  is  projected  by  2020.  Advanced  economies  will   +58M   need  to  find  employment  for  more  than  30  million  low-­‐skilled   High-­‐Skill  Workers   Medium-­‐Skill  Workers   Total  Shortage     Total  Shortage     Advanced   workers,  but  nearly  two-­‐thirds  of  the  oversupply  will  be  in  India   Economies     and  other  young  developing  economies  in  Asia  and  Africa.   -­‐38  to  -­‐41M   -­‐45M   +32  to  +35M   Source:  The  World  at  Work:  Jobs,  Pay,  and  Skills  for  3.5Billion  People,  McKinsey  Global  Ins:tute,  2012  17   Young  Developing  Countries  are  in  Asia  (Bangladesh,  Pakistan)  and  Africa  (Nigeria,  Kenya,  etc.).      
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS THE  WORLD  AT  WORK:  GLOBAL  LABOR  SUPPLY  AND  DEMAND  FORECASTS     Future  imbalances  in  the  supply  and  demand  for  labor  have  the  poten?al  to  create  tremendous  challenges  for  workers,  businesses,  and   economies.  To  help  create  berer  outcomes,  McKinsey  suggests  that  leaders  across  the  globe  need  to  take  new  approaches  to  educa?on   and  training,  as  well  as  formulate  new  strategies  for  job  crea?on.   RAISING  SKILLS  THROUGH  EDUCATION  AND  TRAINING   DEMAND/SUPPLY  GAPS  BY  EDUCATION  LEVEL,  2020  (E)   In  both  developing  and  advanced  economies,  improving  training  and   23%   educa:on  opportuni:es  will  be  cri:cal  in  raising  skill  levels  in  order  to  bridge   Advanced  Economies   the  looming  talent  supply  gap.     +11%   Advanced  economies,  which  will  have  too  many  workers  with  a  high  school   educa:on  and  too  few  college  grads,  need  to  raise  college  gradua:on  rates   -­‐10%   and  direct  more  students  to  higher  skilled  fields.    China  will  also  need  to   con:nue  to  boost  college  enrollment  as  it  faces  a  large  deficit  of  highly   educated  workers.   College  Degree   High  School  or  Lower   India  could  encounter  a  unique  set  of  labor  imbalances,  with  surpluses  of     China     both  college-­‐educated  workers  and  workers  with  litle  educa:on,  but  a   +11%   shortage  of  workers  with  a  secondary  educa:on.  In  India,  more  high  school   and  voca:onal  educa:on  is  needed,  as  well  as  retraining  for  large  numbers  of   -­‐16%   unskilled  adults.       JOB  CREATION  FOR  ALL  TALENT  LEVELS   College  Degree   High  School  or  Lower   Training  and  educa:on  alone  will  not  solve  the  talent  mismatch.  Across  the   globe,  countries  and  businesses  also  need  to  sustain  demand  and  create  more   India     jobs  for  medium-­‐  and  lower-­‐  skilled  workers,  according  to  McKinsey.     Developing  higher  value-­‐added  manufacturing  and  services  is  one  way  for   +8%   +7%   emerging  markets  to  provide  more  employment  for  low-­‐skilled  workers.  And   -­‐10%   in  advanced  economies,  opportuni:es  exist  within  the  service  sectors,   par:cularly  in  the  healthcare  field,  to  create  quality  jobs  for  the  surplus  of   medium-­‐skilled  workers.     College  Degree   High  School   Primary  School  or   Lower   Source:  The  World  at  Work:  Jobs,  Pay,  and  Skills  for  3.5Billion  People,  McKinsey  Global  Ins:tute,  2012  18  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GROWING  PAINS:  TALENT  CHALLENGES  IN  RAPID-­‐GROWTH  MARKETS     Talent  management  has  become  increasingly  important  to  interna?onal  organiza?ons  as  they  seek  to  grow  and  execute  global  strategies.   But  for  companies  in  rapid-­‐growth  markets,  talent  management  strategies  oSen  lag  behind  the  widening  scope  of  their  opera?ons.  New   research  from  Ernst  &  Young  iden?fied  four  major  talent-­‐related  challenges  that  companies  in  rapid-­‐growth  markets  face,  and  suggested   ac?ons  to  take  in  order  to  tackle  these  challenges  successfully.   TALENT  MANAGEMENT  WITHOUT  BORDERS   KEY  TALENT  MANAGEMENT   BUSINESS  IMPLICATIONS   Mul:na:onal  companies  in  fast-­‐growing  markets  face  cri:cal  challenges   CHALLENGES     23%   RESPONSES   AND   as  they  seek  to  implement  global  talent  strategies.  Management  teams   struggle  with  cultural  differences,  conflic:ng  internal  views,  difficul:es  in   21%   balancing  global  and  local  talent,  and  unreliable  leadership  pipelines.   Top  management  teams  lack   21%   Integrate  talent  management   Organiza:ons  need  to  create  integrated  talent  management  strategies   interna:onal  experience   and  global  mobility  strategies   that  address  these  issues  and  help  them  succeed  beyond  their  borders.   16%   How  effec?ve  is  your  company  at  the  following  aspects  of   13%   talent  management?   Lack  of  internal  management   Iden:fy  talent  needs  across   Developing  an  internal  pipeline  of   27%   pipeline  forces  companies  to   markets  and  align  strategies   management  talent   recruit  from  rivals   with  individuals’  objec:ves   Recrui:ng  and  retaining  key  global   talent   23%   Evalua:ng  and  rewarding  high   performance  across  markets   20%   Companies  are  unable  to   Connect  short-­‐term   retain  and  reward  high   recruitment  strategies  with   Planning  for  future  talent  needs   across  markets   20%   performers  in  different   long-­‐term  workforce  planning   markets   efforts   Aligning  business  strategies  with   17%   individuals’  performance  objec:ves   Iden:fying  talent  gaps  and   17%   C-­‐suite  leaders  and  lower-­‐ Establish  uniform  metrics  for   responding  quickly  to  fill  them   level  managers  hold   manager  performance  and   Mo:va:ng  employees  from   conflic:ng  views  on  talent   create  an  inclusive  people   different  cultures   16%   management   culture   0%   10%   20%   30%   810  respondents;  %s  are  those  who  strongly  agree.   Source:  Growing  Pains:  Companies  in  Rapid-­‐Growth  Markets  Face  Talent  Challenges  as  They  Expand,  Ernst  &  Young,  2012  19  
  • Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KGWI:  SOCIAL  MEDIA—BUSINESS  OR  PLEASURE?     The  explosion  of  social  media  con?nues  to  transform  communica?on  and  open  up  new  ways  of  interac?on  –  but  it  also  brings  challenges,   par?cularly  in  a  work  sewng.  Findings  from  the  2012  Kelly  Global  Workforce  Index  (KGWI)  show  that  awtudes  towards  social  media  and   its  usage  in  the  workplace  are  far  from  consistent.     SOCIAL  MEDIA  ON  THE  JOB   A  large  share  of  workers  don’t  think  that  personal   social  media  has  a  place  in  the  workplace.  Only  30%  of   30%  of  employees  feel  it   employees  say  it’s  OK  to  use  social  media  for  personal   is  acceptable  to  use   Gen  Y   Gen  X   Baby  Boomer   36%   30%   19%     reasons  at  work,  and  43%  believe  that  social  media  use   social  media  for   at  work  adversely  affects  produc:vity.  Only  around   personal  use  at  work   one-­‐quarter  of  workers  think  that  sharing  opinions     about  their  work  on  social  media  is  acceptable.     But  axtudes  towards  social  media  use  in  the   APAC     Professional/   Non-­‐  P/T   Americas   EMEA   workplace  differ  greatly,  with  younger  workers,   Technical   31%   48%   24%     16%   professional  employees,  and  those  in  the  APAC  region   35%   consistently  taking  a  more  tolerant  and  open   approach.  Employers  may  want  to  consider  these   differences  among  key  workforce  segments  as  they   develop  social  media  strategies  and  policies.     43%  of     24%  of  employees  feel  it  is  acceptable  to  share   employees  say   Gen  Y   Gen  X   Baby  Boomer   their  opinions  about  work  on  social  media   that  the  use  of   40%   44%   49%     social  media  at   Gen  Y   Gen  X   Baby  Boomer   work   28%   22%   16%     nega?vely   impacts   produc?vity   Americas   EMEA   APAC     Americas   EMEA   APAC     53%   41%   34%   17%   22%   36%  20   Source:  Kelly  Global  Workforce  Index,  June  2012   Note:  Regional  differences  may  be  atributed  in  part  to  the  genera:onal  composi:on  of  the  survey  samples,  with  the  APAC  region  having  a  larger  propor:on  of  Gen  Y  respondents.  
  • 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   Todd  Wheatland,  VP,  Head  of   Thought  Leadership  &  Marke:ng,   This  webcast  on  September  12,  2012  presents  the  key  findings  of  the   Key  Findings,  KGWI:   Kelly  Services     2012  Kelly  Global  Workforce  Index  release  on  The  Rise  of  Social   The  Rise  of  Social   Media  for  Professional  and  Personal  Use.  Learn  more  about   Media  for  Personal  and   Megan  RaZery,  Sr.  Manager,   understanding  and  managing  the  unique  and  varied  workplace   Professional  Use   Workforce  Research  and   issues  associated  with  social  media.     Intelligence,  Kelly  Services       KellyOCG  and  the  Henley  Centre  for  Customer  Management   Forging  Successful   KellyOCG  and  the  Henley  Centre   conducted  a  year-­‐long  study  to  iden:fy  the  repeatable   Partnerships  with  an   for  Customer  Management  at   characteris:cs  of  successful  outsourcing  provider  partnerships.  The   Outsourcing  Provider   Henley  Business  School     findings  are  crystallized  in  a  15-­‐minute  primer  for  senior  execu:ves.   Anthony  Raja  Devadoss,  VP,  APAC,     KellyOCG   Labor  markets  vary  widely  across  the  Asia-­‐Pacific  region,  with  talent   Five  Ways  to  Improve   shortages  emerging.  Find  out  more  about  key  mo:vators  to   Your  Recruitment  in   Peter  Hamilton,  Director,  RPO  –   help  atract  and  retain  employees  in  the  Asia  Pacific  region  via  this   Asia-­‐Pacific   Australia  and  New  Zealand,  Kelly   webcast  and  whitepaper.   Services   To  register  for  webcasts  or  for  more  informa:on,  visit  www.kellyocg.com  21  
  • 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. Download The Talent Project, a free iPad app by Kelly Services..A Kelly Services ReportAll trademarks are property of their respective owners. An Equal Opportunity Employer © 2012 Kelly Services, Inc. X1414kellyservices.com