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  • 1. europe, middle east and africa (emea) 2011Talent Market Update
  • 2. y 400 million peopleYounger, skilled workers from the east 0.7% The largest emergingare gaining access to the traditionally uK/ireland are markets in EMEA: projected to haveprotected labor markets in the west. population growth rates russia + turKey + egyptCommon fair pay and employment that are among the south africa + uKraine strongest in Europe aspractices for temporary and migrant immigration increases.workers across the Eurozone, via theAWD, are making it easier than ever for 29 yearsworkers to move freely across borders. and youngerDespite economic uncertainty, many The age of two-thirdscountries are feeling the pinch of labor of the population in middle east +force shortages. Governments are taking north africameasures to attract skilled migrantsback to home soil and encourageworkforce participation. FRANCE: BELGIUM: ITALY: GERMANY: UK: CZECH REPUBLIC: RUSSIA: Restrictions on Work permits for Tax incentives Workers from The ‘Get Britain Unemployment Employment barriers for skilled EU citizens selected workforce are being offered eight Eastern Working’ program benefit eligibility is retirees reentering the entering the labor groups have been for highly skilled Europe countries provides unemployed being tightened. workforce have been eased. market are being relaxed. expats to return can now work 18–21 year olds repealed. to Italy. without a permit. eight weeks work experience without losing benefits.
  • 3. EMEA Talent Market UpdateCoNTENTS 4 introduction 5 emea economic outlooK Growth, recovery and ongoing pressures An uneven outlook for the region Emerging markets are gaining ground 9 demographics & population trends Population peaks and troughs Focus on Africa and the East12 Wages and the labor marKet Employment remains steady The uneven labor market Hiring activity remains fragile Wage trends uneven17 legislative update More protection for agency workers New focus to attract and retain workers20 conclusion21 references22 about usThe analysis focuses on 20 EMEA countries. The 20 countries have been grouped into the following five sub-regions:Western Europe, Central/Eastern Europe, Nordics, UK/Ireland and the Middle East & Africa.3
  • 4. EMEA Talent Market UpdateWhat can We expect from emea in 2013? introduction emea economic outlooK demographics & populationas we consider the future for business across europe, the middle east and africa, we see trendsreflections of the same broad changes that are happening the world over. Wages and the labor marKetMature, traditional economic labor trends will hold, while Switzerland, it’s clear that even legislative updatestrongholds are being others will not. while Western Europe maintains conclusionchallenged by new, emerging its economic dominance for Throughout this new report, now, emerging markets will playeconomies. Younger, skilled leif agnéus referencesworkforces from the east we examine the trends and an increasingly important role about usare finally gaining access to indicators that are shaping the in EMEA’s economy in 2013protected labor markets in the economic and labor market and beyond.west. Governments are taking outlook for the EMEA region over the next two to three Whether you’re operating in allaction to maximize workforce of these markets, or just one,participation and it’s easier than years. We provide updates this report might just show youever for workers to move freely on major legislative changes, another side of the region youacross borders. population and demographic think you already know. profiles, as well as our insightsNew and growing opportunities into the overall labor market.exist, but global economicuncertainty is having its impact As the economic contributions leif agnéushere, as it is everywhere. Results coming from Russia, Turkey and Senior Vice President,are uneven and the outlook for Poland get set to surpass that General Manager,2013 shows that some current of Italy, the Netherlands and Europe, Middle East and Africa4
  • 5. EMEA Talent Market Update introduction emea economic outlooK Growth, recovery and ongoing pressures An uneven outlook for the region Emerging markets are gaining ground demographics & population trendsEMEA Economic Outlook Wages and the labor marKet legislative update conclusion references about us5
  • 6. EMEA Talent Market UpdategroWth, recovery and ongoing pressures introduction emea economic outlooK Growth, recovery and ongoing pressuresdespite the fatigue many of us now feel regarding global economic uncertainty, business An uneven outlookconfidence has yet to rebound strongly enough to put it behind us. for the region Emerging markets are gaining groundAusterity measures and political groWth & recovery pressurestensions continue to impact demographics • Germany will continue to • Eurozone inflation will average & populationacross the region, ensuring trends lead the recovery in Western 2.5% in 2011 but governmentgrowth remains modest through Europe. The UK, Ireland, austerity measures should Wages and theto 2013. Temporary inflation labor marKet Italy, Spain and Portugal help reduce it in 2012.spikes driven by commodity will constrain regional legislative updateprice increases will be curbed • The temporary spike in performance due to conclusionby still elevated unemployment inflation in the Middle East will fiscal tightening.rates, coupled with modest moderate, but remain among referencespopulation growth and • Growth in Central/Eastern the highest in EMEA. about usconstrained GDP growth in Europe, led by Russia andthe Eurozone. • EU labor demand is rising, but Poland, will outpace much the number of unemployed of EMEA.The developing markets of workers remains 40% aboveAfrica, the Middle East and parts • Economic output in the pre-recession levels.of Central and Eastern Europe Middle East and Africawill buck this trend, albeit with • Economic output in Western has already surpassedsome considerable constraints. Europe is not expected to fully pre-recession levels. recover until 2013.6
  • 7. EMEA Talent Market Updatean uneven outlooK for the region introduction emea economic outlooK Growth, recovery and ongoing pressuresMany near-term economic indicators are trending positively across the region, but the outlook remains An uneven outlookmodest and uneven, with stark differences between individual countries. The developing markets of for the regionCentral and Eastern Europe, as well as the Middle East and Africa, are forecast to outpace the rest Emerging markets are gaining groundof Europe from an economic growth perspective. However, these markets are constrained by higherinflation and unemployment—trends that will continue for the foreseeable future. demographics & population trends demographics by region Wages and the labor marKet country/region real gdp nominal inflation population population unemployment growth gdp 2011 rate (2011 millions) growth rate legislative update (2011) ($b usd) (2011) (3 yr avg.) (2011) conclusion emea 2.6% $25,429 4.0% 2,147.9 1.4% 11.5% references Western europe 1.9% $12,712 2.1% 320.5 0.2% 10.0% about us nordics 3.0% $1,544 2.1% 25.1 0.4% 6.8% uK/ireland 1.4% $2,666 3.6% 67.3 0.7% 8.6% central/eastern europe 4.0% $4,535 6.9% 478.6 0.2% 8.4% middle east & africa 5.2% $3,972 7.6% 1,256.4 2.2% 13.3%7 Source: IHS Global Insight
  • 8. EMEA Talent Market Updateemerging marKets are gaining ground introduction emea economic outlooK Growth, recovery and ongoing pressuresWestern europe will maintain its economic dominance, but emerging markets will play an An uneven outlookincreasingly important role in emea’s economy. for the region Emerging markets are gaining groundRussia displaced Spain as the emea—2009 emea—2013 (est.)region’s 5th largest economy % of nominal gdp by sub-region % of nominal gdp by sub-region demographics & populationlast year and is forecast to move trendspast 4th ranked Italy by 2013. 6% 6% Wages and theBy 2013, Turkey is forecast to 10% 11% labor marKetmove past the Netherlands to legislative updatebecome the 7th largest regionaleconomy and Poland will conclusion 14% 54% 17% 47%surpass 9th ranked Switzerland. referencesThe UK and Nordics will about usremain a stable source of 16% 19%economic output, with theircombined output remainingjust under 20%. 54% Western europe 47% Western europe 16% central/eastern europe 19% central/eastern europe 14% Middle east & africa 17% Middle east & africa 10% ireland/uK 11% ireland/uK 6% nordics 6% nordics8 Source: IHS Global Insight
  • 9. EMEA Talent Market Update introduction emea economic outlooK demographics & population trends Population peaks and troughs Focus on emerging markets Wages and theDemographic & labor marKet legislative update conclusionpopulation trends references about us9
  • 10. EMEA Talent Market Updatepopulation peaKs and troughs introduction emea economic outlooK demographics & populationWhile Western europe will remain the dominant economic force in the region for the forseeable future, trendspopulation growth trends present a long-term challenge. the clear and striking population trends in Population peaks and troughsemerging markets are the single most powerful indicator of the shift that’s occurring in the region. Focus on emerging marketsWith around 2.2 billion people, Central/Eastern Europe and Population growth will be Wages and the labor marKetEMEA’s population is forecast to the Middle East & Africa limited in Central/Easterngrow at an average rate of 1.4% represent more than 80% Europe as Hungary, Poland, legislative updatethrough 2013. The strongest of EMEA’s population. and Russia are all expecting conclusiongrowth will come from the population declines through UK and Ireland are projected to referencesMiddle East and Africa. to 2013. have population growth rates about us that are among the strongest in Europe as immigration supports average growth rates of 0.7% through 2013.10
  • 11. EMEA Talent Market Updatefocus on emerging marKets introduction emea economic outlooK demographics & populationThe focus of the future labor population groWth, 2011–2013 trendsmarket is shifting towards Population peaks EMEA and troughsemerging markets. These 1.4% Focus onlarge markets are growing and emerging marketsgaining greater mobility, and Wages and thethe population is young – a stark CENTRAL/EASTERN EUROPE labor marKetcontrast to the flat and ageing 0.2% legislative updatepopulation of Western Europe. WESTERN EUROPE conclusion 0.2%With a combined population referencesof nearly 400 million, Russia, NORDICSEgypt, Turkey, South Africa and about us 0.4%the Ukraine represent some ofthe largest emerging markets IRELAND/UKin EMEA. In the Middle East & 0.7%North Africa, an incredible MIDDLE EAST & AFRICAtwo-thirds of the population is 2.2%aged 29 years or younger.11 Source: IHS Global Insight, European Commission Employment Situation and Social Outlook, Eurostat, Education for Employment – Realizing Arab Youth Potential
  • 12. EMEA Talent Market Update introduction emea economic outlooK demographics & population trends Wages and the labor marKet Employment remains steady The uneven labor market Hiring activityWages and the labor market remains fragile Wage trends uneven legislative update conclusion references about us12
  • 13. EMEA Talent Market Updateemployment remains steady introduction emea economic outlooK demographics & populationGenerally, the outlook for unemployment rate*, 2009–2013 trendsemployment through 2013 2013 Wages and the 13.5remains steady. A decline in labor marKet 12.2 12.9 2011 11.5 Employmentunemployment across Europe is 10.9 11 10 2009 2009 remains steadyexpected, with significant falls in 9.2 9.5 9.2 The uneven 8.4 8.6 8.3central and eastern Europe and 7.5 2011 labor market 7.2 6.8 6.8 6.7a smaller decrease in the west. 2013 Hiring activity remains fragileThere are some exceptions Wage trendsthat will experience modest unevenincreases in unemployment legislative updateby 2013, including the UK and NORDICS CENTRAL/ IRELAND/UK WESTERN EUROPE MIDDLE EAST EMEA EASTERN EUROPE & AFRICAIreland, as well as the Middle conclusionEast and Africa. references about us * Unemployment rates reflect a weighted average based on country/regional population contributions.13 Sources: IHS Global Insight, European Commission Employment Situation and Social Outlook; Eurostat, Education for Employment – Realizing Arab Youth Potential
  • 14. EMEA Talent Market Updatethe uneven labor marKet introduction emea economic outlooK demographics & populationfrom Q2 2010 to Q1 2011 quarterly job growth in the eu has been mostly flat. there has been trendsuneven labor market performance across emea, with strength in germany, central/eastern europe Wages and theand the middle east, while Western europe remains sluggish. labor marKet Employment remains steady• Germany is expecting to reach • South African employment • April and May surveys are The uneven labor market its highest employment level levels stabilized in 2010, and now available and show Hiring activity since reunification by the end declines usually seen in the easing employment remains fragile of 2011, and full employment first quarter did not materialize expectations in every sector, Wage trends uneven (5%) by 2015. in 2011. including sluggishness in the service sector. legislative update• Job vacancies in Europe • Unemployment in Central/ continue to increase in 2011, Eastern Europe will • Gulf region employment is conclusion led by Germany and the decline steadily as Russia’s expected to grow moderately, references Nordic countries. unemployment falls to an led by Qatar and Saudi about us estimated 5.4% by 2013. Arabia. Some 61% of firms were expected to increase headcount in 2011, and just 9% were to cut staff.14 Sources: IHS Global Insight, European Commission Employment Situation and Social Outlook; Eurostat, Education for Employment – Realizing Arab Youth Potential
  • 15. EMEA Talent Market Update QUARTER-OVER-QUARTER YEAR-OVER-YEAR Q208 0.1 1.2 Q308 -0.1 0.7 Q408 -0.3 0.2 Q109 -0.7 -1.1% Q209 -0.7 -1.8 Q309 -0.4 -2.2 Q409 -0.2 -2.1 Q110 -0.2 -1.5hiring activity remains fragile Q210 Q310 0.2 0.1 -0.6 -0.1 introduction Q410 0 0.2 emea economic outlooK demographics & populationEU unemployment rates have Around two-thirds of the eu: employment groWth rates (Q2 2008—Q4 2010) trendsfallen slightly over the past population in the Middle East 1.2 Wages and the Quarter-over-Quarter labor marKetyear, but the number of & North Africa is aged underunemployed workers is still 29 years, raising prospects of year-over-year Employment 0.7 remains steady40% above pre-recession levels. continued high unemployment The uneven QUARTER-OWhile there is clearly plenty in the region. 0.2 0.2 0.2 labor market 0.1 0.1of good news across the 0 Hiring activity YEAR-OVER- Spanish unemployment will remains fragileregion, the pace of hiring is -0.1 -0.1 remain above 17% through -0.2 -0.2 Wage trendsyet to materialize into large- -0.3 -0.4 uneven 2014. Unemployment inscale gains. -0.6 Portugal and Ireland are -0.7 -0.7 legislative updateBy the end of 2010, EU forecast to remain above conclusion -1.1employment had stabilized 10% through 2014. referencesat 221 million, representing -1.5 UK unemployment claimsa year-on-year growth rate -1.8 about us increased in July 2011 atof just 0.2%. -2.1 the sharpest pace in more than -2.2 two years as the public sector Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 sheds jobs.15 Source: Eurostat
  • 16. EMEA Talent Market UpdateWage trends uneven introduction emea economic outlooK demographics & populationWage growth trends differ trends belgium: Failure to negotiate hungary & poland: Thesignificantly across the region. Wages and the an agreement has led to minimum wages were labor marKet limited salary increases increased 4.5% and 5.2% EmploymentRecent wage growth has been through to 2012. respectively in 2011. remains steadymuted across the EU— average The unevenhourly wages grew just 1.9% labor marketthroughout 2010, compared to Hiring activity remains fragile3 to 4% prior to the recession. Wage trendsHigher inflation is causing wages unevento grow faster across Central/ legislative updateEastern Europe, while marketsstruggling to recover from the conclusion germany: Wage growth isdebt crisis (Greece, Ireland) currently flat, but will accelerate referencesare seeing wages fall with as the labor market approaches about usausterity measures. full employment. uae: Legislation to reduce late and non-payment of wages means gulf region: Salaries are companies must expected to grow 6.6% now pay wages in 2011 (up from 6.1% in through a central 2010) with Qatar and Saudi authority. Growth Arabia likely to see the in average earnings biggest increases, (7.2% is expected to be and 7.0% respectively). 6.3% in 2011.16 Sources: Eurostat, IHS Global Insight, and GulfTalent.com
  • 17. EMEA Talent Market Update introduction emea economic outlooK demographics & population trends Wages and the labor marKet legislative update More protection for agency workers New focus toLegislative Update attract and retain workers conclusion references about us17
  • 18. EMEA Talent Market Updatemore protection for agency WorKers introduction emea economic outlooK demographics & populationGovernments in both mature uK: Steps to make the trends denmark: Talks to clarifyand developing economies employment tribunal system Wages and the liability for agency worker labor marKetare establishing common fair more ‘employer/recruiter- claims continue.pay and employment practices friendly’ are being taken. legislative updateunder the EU Agency Workers More protection for agency workersDirective (AWD). This will see New focus toa more level playing field for attract andagency workers, and could retain workersdrive increases in this conclusionemployment market. references germany: An Act toIn addition to implementing safeguard temporary about usthe AWD by the end of employees is being2011, further protections belgium: Clarified the introduced.for temporary workers are obligations of temporarybeing considered in various staffing agencies andcountries, including: clients regarding the health and safety of temporary workers, and confirmed that companies engaged eu agency WorKers directive: in leasing/ payrolling Temporary agency workers are to receive the employees must be same basic pay and working conditions as if recognized as temporary employed directly by the hirer. The UK, Ireland employment agencies. and Hungary are the last member states to implement pay parity. Governments must review legislation pertaining to temporary agency work, and remove or justify restrictions.18
  • 19. EMEA Talent Market UpdateneW focus to attract and retain WorKers introduction emea economic outlooK demographics & populationJob creation remains a uK: The ‘Get Britain germany: Workers from trendslegislative priority in several Working’ program provides eight Eastern European Wages and themarkets, but many countries countries can now work labor marKet unemployed 18-21 year-oldsare now feeling the pinch of eight weeks’ work experience without a permit. legislative updatelabor force shortages and without losing benefits. More protection for agency workersare turning their focus to The default retirement age New focus toattracting and retaining of 65 is repealed on attract andskilled talent. Measures to 1 October 2011. retain workersattract skilled migrants back conclusionto home soil and encourage referencesworkforce participation aregaining popularity. about us belgium: Work permits for select workforce groups have been relaxed. russia: Employment barriers for retired citizens seeking to re- enter the workforce have been eased. france: Restrictions on italy: Tax incentives are czech republic: Eligibility skilled Eastern European EU being offered for highly for unemployment benefits citizens entering the labor skilled expatriates to is expected to be tightened. market are being repealed. return to Italy. There are new incentives to promote the hiring of older/ youth workers, and quotas on the gender make-up of boards of directors to boost opportunities for women.19
  • 20. EMEA Talent Market Updateconclusion introduction emea economic outlooK demographics & populationnew fronts in economic, population and labor market strength are taking shape across emea. trendsover the coming years, we will see significant changes as emerging markets begin to exert Wages and thegreater influence in the global labor market, and the economy overall. labor marKet legislative update• uch of Western Europe M conclusion is focusing on attracting in light of these trends, hoW should references expatriates and increasing the your WorKforce strategy respond? workforce participation about us • mobility: Labor shortages and wage pressures will be of older workers and concentrated in particular markets. New strategies to attract the unemployed. skilled workers from other regions will be needed, particularly on• s the population in A a temporary basis. Western Europe flattens or • retention: New labor pools are opening up in EMEA, but these decreases, organizations and will have a shortage of skilled and experienced workers. Finding governments will be looking ways to engage and retain workers for longer will become a increasingly at innovative higher priority. approaches to maximize dwindling labor pools and to • flexibility: Skilled and experienced workers look for flexibility attract talent. in their employment—how organizations provide this is key to attracting and retaining sought-after talent.• reater protections for G temporary workers and migrant workers across the Eurozone is making talent mobility easier and more attractive.• age growth is significant in W the Middle East and Asia, yet is flat across much of Europe.20
  • 21. EMEA Talent Market Updatereferences introduction emea economic outlooK demographics & populationthe information contained in this report was gathered from numerous sources, including: trends Wages and the• HS Global Insight: country intelligence reports (Feb-May 2011) I labor marKet legislative update• uropean Commission Employment Situation and Social Outlook E conclusion• urostat, Education for Employment – Realizing Arab Youth Potential E references• U Employment Social Situation, European Commission, March-April 2011 E about us• mployment and Salary Trends in the Gulf 2010-2011 E• uarterly Labor Force Survey, Statistics South Africa Q1’11 Q• ulftalent.com G• ewitt Associates Global Legislative Developments (Feburary/April 2011); H• taffing Industry Analysts Legislative & Regulatory Advisor (Jan-April 2011) S• lobal Employment Law Web Portal G21
  • 22. ABoUT KELLY SERvICES®Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforcesolutions. Kelly® offers a comprehensive array of outsourcing and consulting servicesas well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis.Serving clients around the globe, Kelly provides employment to more than 530,000employees annually. Revenue in 2010 was $5 billion. visit www.kellyservices.com andconnect with us on Facebook®, LinkedIn®, and Twitter®.Kelly Services EMEA is the second largest region of Kelly Services, Inc. operating in18 countries across Europe, the Middle East, and Africa. The European Headquarteris based in Neuchatel, Switzerland.A KELLY SERvICES REPoRTAll trademarks are property of their respective owners. An Equal opportunity Employer © 2011 Kelly Services, Inc.kellyservices.com