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Q1 2013 Global Talent Market Quarterly

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This quarterly report from workforce solution provider Kelly Services delivers valuable insights about global labor market trends.

This quarterly report from workforce solution provider Kelly Services delivers valuable insights about global labor market trends.

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  • 1. Global Talent Market Quarterly FIRST QUARTER l 2013
  • 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 • Building a Pipeline of Skilled Workers • The Highly Virtual Workplace • Kelly Knowledge
  • 3. Global Economic Situation FIRST QUARTER l 2013
  • 4. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  ECONOMIC  BRIEFING     The  global  economy  slowed  in  2012,  as  ongoing  fiscal  tensions  in  Europe  and  the  U.S.  and  soSening  in  key  Asian  markets  kept  business   and  consumer  ac>vity  muted.  Confidence  is  star>ng  to  rebound  in  many  parts  of  the  world,  albeit  unevenly,  as  2013  begins.   AMERICAS   EMEA   APAC   Economic  growth  across  the  region  is  >ed  to    A  s>ll-­‐weak  economic  climate  in  the  Eurozone   While  strong  compared  to  other  economies,   U.S.  and  global  performance,  with  tepid   is  dampening  the  regional  outlook  for  2013.   APAC  economic  growth  was  rela>vely  soS  in   growth  in  2012  expected  to  con>nue  in  2013.   2012.  Improvement  is  expected  in  2013  in   Eurozone   some  key  markets  including  China  and  India.   Canada   The  Eurozone  recession  may  have  boVomed  out   Economic  growth  in  Canada  mirrored  that  of   in  late  2012,  helped  by  policy  developments  that   Japan   the  U.S.  in  2012,  with  a  strong  beginning  to  the   brought  some  easing  to  the  debt  crisis.  S:ll,  the   Japan’s  economic  performance  declined  in  late   year  tapering  off  by  year’s  end.  The  outlook  for   region  will  struggle  in  2013,  as  rela:vely  stronger   2012,  as  a  poli:cal  feud  with  China  dampened   2013  is  slightly  weaker,  as  external  risks  may   countries  such  as  Germany  will  be  dragged  down   exports  and  a  slowdown  in  government   weigh  on  the  economy’s  performance.     by  troubled  markets  including  Italy  and  Spain.   s:mulus  muted  domes:c  spending.  Growth  is   expected  to  rebound  by  the  end  of  2013.   U.S.   U.K.   The  U.S.  economy  maintained  moderate   Economic  growth  was  essen:ally  flat  in  2012,   China   growth  in  2012,  boosted  by  strength  in  the   and  the  outlook  for  2013  is  only  slightly  beVer.   The  economy  is  expected  to  con:nue  to   private  sector  and  indica:ons  of    recovery  in   Growth  will  be  constrained  by  extended  :ght   accelerate  in  2013,  aYer  2012  growth  of  under   the  housing  market.  Public  sector  finances,   domes:c  fiscal  policy,  ongoing  Eurozone   8%—the  lowest  China  has  seen  since  1999.     however,  remain  a  key  ques:on  and  may   problems,  and  the  soY  global  economic  climate.   India   compromise  growth  in  2013.   Growth  in  2012  was  es:mated  at  just  over  5%.   Central  and  Eastern  Europe   La>n  America   The  cooler  external  economic  environment  kept   While  high  by  global  standards,  this  was  the   The  region’s  economies  are  healthy  but  most   growth  muted  in  2012.  A  slight  accelera:on  is   country’s  slowest  growth  in  a  decade  and  is   are  not  forecast  to  see  significant    GDP   expected  for  the  broader  CEE  region  in  2013;   expected  to  pick  up  only  modestly  in  2013.   accelera:on  in  2013  as  trade  demand  remains   Russian  GDP  growth  will  remain  around  3.5%.   Australia   low.  The  excep:on  is  Brazil,  which  is  expected   The  mining  sector,  which  has  been  Australia’s   Middle  East  and  North  Africa   to  rebound  from  a    very  weak  performance  in   growth  engine  in  recent  years,  has  seen  some   Many  MENA  economies  are  facing  challenging   2012  to  achieve  3%  growth  in  2013.       weakening.  This  slowdown,  along  with  ongoing   growth  prospects  in  2013  due  to  ongoing     poli:cal  unrest  and  social  turmoil,  and  the  cool   government  austerity  programs,  is  expected  to     global  economic  climate.   usher  in  lower  economic  performance  in  2013.      4   Sources:  IHS  Global  Insight  reports  (January  2013);  D&B’s  Global  Economic  Outlook  2012-­‐2013;  Oxford  Economics;  US  BEA,  12.20.12;  Wall  Street  Journal,  12.10.12  and  01.21.13  
  • 5. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS *0121B"0&1(%@11W& " 345674&D8595:;8&78>H;<M&;L&DTED8<DF&<5&788D4DA7<D&NA7F=744M&<OA5=NO5=<&,-./Q&FDED9FD9<&=E59&859>9=DF&D8595:;8&DTE79L;59&;9& D:DAN;9N&:7ACD<L&79F&EA5NADLL&;9&ADL54H;9N&8A;>874&E54;>874&79F&RL874&;LL=DL&;9&<OD&(G$G&79F&*=A5V59DG&)&L<A59NDA&AD65=9F&;L&K5AD87L<&K5A& ,-.ZQ&I;<O&I5A4FI;FD&D8595:;8&NA5I<O&598D&7N7;9&7EEA578O;9N&;<L&459NU<DA:&<AD9F&A7<D&5K&/G[G& #D74&3]X&3A5I<O&#7<DL&^&0O79ND_& #D74&3]X&3A5I<O&#7<DL&^&0O79ND_&$D4D8<&B7ACD<L&& [)?4%="2@"KL!Pd7e"8&1J59" 05=9<AM`&#DN;59& ,-.,&^D_& ,-./&^E_& ,-.Z&^E_& 0O;97&& )B*#"0)$& PA7V;4& !BLU" PBLU" iBjU" "9F;7&& 0797F7& KBLU" !B_U" KBkU" #=LL;7&& (G$G& KBPU" !BjU" KBjU" @7>9&):DA;87& KBkU" PBPU" iBiU" PA7V;4&& *B*)& )=L<A74;7&& !A798D& LB!U" hLB!U" LBU" 3DA:79M& !BLU" LBaU" !B!U" 0797F7&& /012)0"/A-"/&1J59" dKL!P"7ec"KBkU" "<74M& hKBLU" h!B!U" hLBPU" (G$G&& #=LL;7& PBkU" PBiU" iB!U" (GWG& LBLU" LBaU" !BiU" (GWG&& *=A5V59D& hLBiU" hLBKU" LBiU" 3DA:79M&& )X)0& KL!K"d%e"" )=L<A74;7& PBkU" KBiU" KB_U" Y7E79&& 0O;97& jBjU" _BLU" _BPU" KL!P"d7e"" "9F;7& B!U" B_U" kBaU" !A798D&& KL!i"d7e" Y7E79& !BjU" LBPU" !B_U" "<74M&& )X)0& iB_U" iBU" BU" J1#@]& KBU" KBkU" PBiU" U/& U,& U.& -& .& ,& /& Z& [& ?& a& b& c& .-& 61>&(%c"WG6"/012)0"W?*895"&%71&5*"d^)?>)&@"KL!Pe""
  • 6. Global Labor Market Update FIRST QUARTER l 2013
  • 7. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS     Job  crea>on  is  expected  to  maintain  a  solid  pace  across  much  of  the  Americas  region  in  2013,  despite  the  forecast  for  somewhat  sluggish   economic  condi>ons.  The  steady  hiring  momentum  should  begin  to  spur  more  significant  declines  in  unemployment  in  2014.   UNITED  STATES   BRAZIL   CANADA   MEXICO   Monthly  employment  gains     Despite  sluggish  economic   Canada’s  labor  market  finished   A  solid  economy  will  con:nue  to   averaged  just  150,000  in  both   growth,  the  Brazilian  economy   2012  on  a  high  note,  with  nearly   create  demand  for  workers  in  the   2011  and  2012.  AYer  two  years   con:nued  to  create  jobs  in  2012,   100,000  jobs  added  in  the  last   formal  labor  market  and  lower  the   of  mediocre  hiring,  the  U.S.  labor   with  unemployment  falling  to   two  months  and  unemployment   official  unemployment  rate.  Formal   market  is  expected  to  pick  up  the   near  record  lows.  Hiring  is   falling  to  a  four-­‐year  low.  Slower   employment  only  accounts  for   pace  and  add  over  two  million   expected  to  con:nue  as  the   economic  growth  may  temper   around  a  third  of  the  labor  force  in   jobs  in  2013.   economy  strengthens  in  2013.   employment  gains  in  2013.   Mexico,  however.       Average  Annual  Unemployment  Rate   10%   8%   8.1%   7.7%   2012  (e)   6%   7.3%   7.3%   7.3%   7.0%   5.6%   5.5%   5.3%   2013  (p)   4%   4.8%   4.6%   4.3%   2014  (p)   2%   0%   U.S.   Brazil   Canada   Mexico   Sources:  IHS  Global  Insight  reports  (January  2013);    Reuters,  12.21.12;  Globe  and  Mail,  01.04.13  7  
  • 8. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  EMEA     Job  prospects  in  the  Eurozone  remain  very  weak  as  employers  con>nue  to  trim  payrolls  as  a  result  of  diminished  demand.  Labor  markets  in   some  countries,  including  Germany,  Russia,  and  the  U.K,  have  shown  surprisingly  ligle  nega>ve  effects  from  the  downturn.   GERMANY   FRANCE   UNITED  KINGDOM   RUSSIA   Hiring  was  up  slightly  in  2012  as   Unemployment  accelerated  in   The  U.K.  labor  market  con:nues   Russia  achieved  record-­‐low   the  labor  market  remained   France  in  2012  and  is  expected  to   to  perform  beVer  than  expected   unemployment  levels  in  2012,  a   rela:vely  resilient  despite  the   con:nue  to  intensify  as  business   in  light  of  the  economic  situa:on.   trend  that  is  expected  to  persist   region’s  economic  woes.  Ongoing   condi:ons  remain  weak.  Although   Unemployment  is  forecast  to  edge   along  with  moderate  economic   effects  from  the  crisis  are  expected   the  government  has  pledged  to   up  in  2013  as  private  hiring  is  not   growth  through  2014.     to  nudge  the  unemployment  rate   make  jobs  its  key  priority,  liVle   likely  to  offset  ongoing  public   ITALY   up  in  2013,  however.     recovery  is  seen  un:l  late  2014.   sector  job  cuts.   Hiring  demand  is  expected  to   con:nue  to  weaken  and   unemployment  will  accelerate   throughout  2013  as  the  country   Average  Annual  Unemployment  Rate   struggles  through  recession.   12%   10%   10.9%  10.7%   10.7%   11.4%  11.3%   10.3%   8%   2012  (e)   8.0%   8.1%   8.2%   6%   2013  (p)   6.8%   7.0%   6.8%   5.7%   5.4%   2014  (p)   4%   5.2%   2%   0%   Germany   France   U.K.   Russia   Italy   Sources:  IHS  Global  Insight  reports  (January  2013);    dw.de,  01.03.13;  Wall  Street  Journal,  01.11.13  and  12.12.12  8  
  • 9. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  UPDATE:  APAC     Regional  labor  markets  weakened  in  2012  as  the  uncertain  global  economy  constrained  business  ac>vity  and  dampened  demand  for   exports.  Hiring  in  APAC  countries  will  remain  subdued  in  2013,  with  improvements  seen  in  2014  as  economic  growth  rebounds.     JAPAN   CHINA   INDIA   AUSTRALIA   The  Japanese  labor  market  held  up   China’s  ci:es  created  around  12  million   Youth  unemployment  and   The  labor  market  showed  signs  of   reasonably  well  in  2012  despite  a   jobs  in  2012,  and  economic  growth   underemployment  remain  a   weakness  to  close  2012,  with  a  rise   weakening  economy,  as  declines  in   should  sustain  hiring  in  2013.  Despite   significant  issue  in  India,  but   in  unemployment  and  a  net  job   manufacturing  jobs  were  offset  by   ongoing  rural  immigra:on,  aging   opportuni:es  in  professional   loss  in  December.  Sluggishness  is   gains  in  the  construc:on  and   combined  with  the  one-­‐child  policy   careers  are  growing  for  young   expected  to  persist  in  2013  as   healthcare  areas.  The  outlook  for   caused  China’s  labor  force    to  shrink  in   Indian  workers.   demand  levels  remain  low.   2013  is  not  as  favorable.   2012.  This  trend  is  expected  to   intensify  skills  shortages  in  the  future.     Average  Annual  Unemployment  Rate   10%   9.3%   9.4%   9.1%   8%   2012  (e)   6%   2013  (p)   5.3%   5.4%   5.2%   4%   4.4%   4.9%   4.9%   2014  (p)   4.1%   4.1%   4.0%   2%   0%   Japan   China   India   Australia   Sources:  IHS  Global  Insight  reports  (January  2013);  Reuters,  01.16.13  and  01.24.13;  Financial  Times,  01.18.13;  Kashmir  Images,  10.25.12  9  9
  • 10. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LABOR  MARKET  SPOTLIGHT:  2013  HIRING  FORECAST     PLANS  FOR  HIRING  IN  2013  VARY  WIDELY  BY  REGION   EMPLOYERS  WHO  ARE  IN  A  BETTER  FINANCIAL  POSITION  THAN   The  hiring  outlook  is  brightest  in  the  BRIC  countries  (Brazil,   THIS  TIME  LAST  YEAR   Russia,  India,  China),  where  employers  feel  most  confident  about   their  financial  posi:ons,  according  to  CareerBuilder’s    2013   81%   80%   Global  Job  Forecast.     67%   63%   62%   50%   45%   European  countries,  con:nuing  to  baVle  the  recession,  are  less   38%   34%   op:mis:c  about  hiring  condi:ons  for  2013.  One  third  of   25%   employers  in  Italy  and  nearly  a  quarter  of  French  companies  say   they  plan  to  downsize  their  workforces  in  2013.   U.S.  companies  are  cau:ously  op:mis:c  when  it  comes  to  their   India   Brazil   China   Russia   U.S.   U.K.   Germany   France   Japan   Italy   hiring  plans  for  2013.  More  than  a  quarter  (26%)  of    U.S.   employers  say  that  they  plan  to  increase  their  full  :me   headcount  in  2013,  and  more  than  60%  of  companies  say  that   EMPLOYERS  WHO  PLAN  TO  INCREASE  OR  DECREASE  FULL-­‐TIME     their  company  is  in  a  beVer  financial  posi:on  than  a  year  ago.   EMPLOYEES  IN  2013   Increase   HOT  HIRING  AREAS  INCLUDE  TECH,  SALES  &  PRODUCTION   5%   Decrease   13%   Across  the  world’s  largest  economies,  employers  say  they  plan   27%   15%   to  focus  hiring  in  areas  that  generate  revenue  and  extend  their   21%   71%   67%   15%   9%   24%   19%   33%   reach  such  as  sales/marke:ng  and  customer  service.  Employers   52%   48%   are  also  looking  for  IT  workers  to  help  navigate  the  changing   30%   29%   26%   24%   22%   19%   technology  landscape,  as  well  as  skilled  produc:on  workers.   Brazil   India   China   Russia   U.K.   Germany   U.S.   France   Japan   Italy     TOP  AREAS  FOR  RECRUITMENT  2013:  BY  COUNTRY     Remaining  %  is  no  change/undecided   U.S.   Brazil   China   India     Japan   Sales   Customer  Service   Sales   IT   IT   IT   IT   R&D   Marke:ng   Engineering   Customer  Service   Administra:ve   Produc:on   Customer  Service   Customer  Service   France   Germany   Italy   Russia   U.K.   Produc:on   IT   Produc:on   Produc:on   Sales   Sales   Sales     Sales   Customer  Service   Administra:ve   IT/Customer  Svc  (:e)   Produc:on   Administra:ve   Engineering   Customer  Service   Source:  CareerBuilder  2013  Global  Job  Forecast  10  
  • 11. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL  LEGISLATIVE  UPDATE     The  challenging  global  economic  situa>on  con>nues  to  lead  countries  such  as  the  U.K.  and  France  to  consider  loosening  their  labor   laws  to  encourage  more  flexibility.  And  as  flexible  work  models  become  more  ingrained  into  the  modern  workplace,  legisla>on  that   seeks  to  frame  and  define  temporary  work  constructs  also  is  becoming  more  prevalent.   FINLAND   Temporary  work  contracts  will  become  more  transparent,   CANADA   as  employers  will  be  required  to  provide  informa:on  on   Changes  to  the  Labour   reasons  for  using  temporary  employees  and  the  length  of   Code  simplify  the  method   their  assignments  in  early  2013.   INDONESIA   for  calcula:ng  holiday   Widespread  labor  protests  have   pay  and  create  a  deadline   prompted  Indonesia’s  Manpower   U.K.   FRANCE   by  which  employers  must   Ministry  to  issue  a  decree  which   A  new  reform  reduces  the   A  new  agreement  designed  to   pay  vaca:on  pay.   minimum  consulta:on   would  restrict  the  use  of   encourage  labor  market   period  required  before   flexibility  has  been  approved   temporary  and  contract  workers.     companies  can  make  large   by  unions  and  employers.  The   scale  redundancies.   agreement  paves  the  way  for   U.S.   labor  reform  legisla:on,  which   States  con:nue  to  implement  rules   could  come  into  effect  by  the   AUSTRALIA   regarding  E-­‐Verify,  an  internet-­‐based   middle  of  2013.   The  new  Workforce  Gender   program  that  confirms  that   employees  are  authorized  to  work  in   Equality  Act  focuses  on  fostering   the  country.  As  of  January  2013,  four   gender  equality  in  the  workplace   VIETNAM   by  promo:ng  equal  pay  between   more  states  now  require  employers   to  use  E-­‐Verify.   The  new  Labor  Code,  which  will  take  effect   women  and  men,  and  helping   in  May  2013,  will  legalize  the  prac:ce  of  sub-­‐ eliminate  discrimina:on  on  the   leasing  workers—a  hybrid  of  temporary   basis  of  family  and  caring   staffing  and  labor  outsourcing—and  add   responsibili:es.   protec:ons  for  the  sub-­‐leased  workers.   Sources:  www.arnnet.com.au;  Staffing  Industry  Analysts  11.19.12  and  10.12.12;  IHS  Global  Insight,  12.19.12;  SIA  Legs  and  Regs  Advisor,  November/December  2012;  www.esrcheck.com;  JPMorgan,  01.14.13;   IHS  Global  Insight,  01.14.13;  Mondaq  Business  Briefing  11  
  • 12. U.S. Labor Market Overview FIRST QUARTER l 2013
  • 13. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  EMPLOYMENT  CONDITIONS     STEADY  PACE  OF  HIRING   U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE   The  U.S.  labor  market  has  maintained  a  solid   pace  since  mid-­‐2012.  The  economy  added  an   Unemployment  Rate  (%)   300   10.0   Employment  (000s)   average  of  nearly  160,000  jobs  per  month  in   250   9.0   the  last  half  of  the  year,  and  unemployment   200   con:nued  to  edge  down  as  U.S  employers   8.0   150   cau:ously  added  to  their  payrolls.     100   7.0   Overall,  the  labor  market’s  performance  in   50   6.0   2012  very  closely  mirrored  that  of  2011,  with   0   5.0   Jun-­‐11   Jul-­‐11   Aug-­‐11   Aug-­‐12   Jan-­‐11   Oct-­‐11   Jun-­‐12   Jul-­‐12   Oct-­‐12   Nov-­‐11   Jan-­‐12   Nov-­‐12   Dec-­‐10   May-­‐11   May-­‐12   Dec-­‐11   Dec-­‐12   Feb-­‐11   Sep-­‐11   Feb-­‐12   Sep-­‐12   Apr-­‐11   Apr-­‐12   Mar-­‐11   Mar-­‐12   both  years’  monthly  employment  gains   averaging  153,000  and  a  total  of  around  1.8   million  jobs  added  in  each  year.     Total  non-­‐farm  employment  growth   Unemployment  rate   UNEMPLOYMENT  INCHING  DOWN   The  unemployment  rate  fell  below  8%  in   September  2012—a  three-­‐year  low—and  has   EMPLOYMENT  OVERVIEW   remained  fairly  constant  since  then.  While  s:ll   high  by  historical  standards,  it  is  well  below  the   DEC   NOV   OCT   SEPT   AUG   10%  peak  reached  in  2009.     Long-­‐term  unemployment,  which  skyrocketed   Total  non-­‐farm  employment  growth   155K   161K   137K   132K   192K   during  the  recession,  has  also  begun  to  ease.     The  number  of  long-­‐term  unemployed  workers   Private  sector  employment  growth   168K   171K   203K   122K   134K   (those  jobless  for  27  weeks  or  more)  fell  by   Unemployment  rate   7.8%   7.8%   7.9%   7.8%   8.1%   nearly  15%  in  2012  and  is  down  more  than   25%  since  December  2010.      OUTLOOK  FOR  2013  IS  FAVORABLE   The  steady  pace  of  hiring  in  late  2012  reflects  a  show  of  confidence  among  U.S.  businesses,  as  they  took  on  more  workers  despite  ongoing  uncertain:es   including  fiscal  cliff  nego:a:ons.  While  the  solid  rate  of  job  crea:on  and  the  steady  drop  in  unemployment  are  encouraging,  there  are  s:ll  4  million   fewer  jobs  now  in  the  U.S.  than  before  the  recession  began,  and  unemployment,  while  improving,  is  stubbornly  high.  Although  the  U.S.  labor  market  has   favorable  growth  prospects  for  2013,  reaching  pre-­‐recession  employment  levels  will  depend  on  healthy  and  sustained  economic  expansion.   Source:  U.S  Bureau  of  Labor  Sta:s:cs  13  
  • 14. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S.  LABOR  MARKET  -­‐  SUPPLY  AND  DEMAND     DEMAND  FOR  WORKERS  ENDS  2012  ON  A  HIGH  NOTE   U.S.  MARKET  -­‐  MONTHLY  LABOR  DEMAND  VS.  LABOR  SUPPLY   Online  job  demand  rose  in  December  2012,  boosted  by   an  increased  need  for  workers  in  the  Northeast  in  the   aYermath  of  Hurricane  Sandy.  Despite  December’s   16,000   10,000   substan:al  gains,  job  demand  has  been  rela:vely  flat   in  the  second  half  of  2012  aYer  a  strong  first  six   9,000   14,000   months.  The  average  monthly  growth  in  job  ads  was   around  50,000  per  month  for  the  year,  matching  the   8,000   Unemployed  Workers   rate  seen  in  2011.   12,000   Online  Job  Ads     The  supply/demand  rate  con:nues  to  edge  down,  and   7,000   (in  000s)   (in  000s)   currently  stands  near  2.5,  signifying  that  there  are  s:ll   10,000   more  than  two  and  a  half  :mes  as  many  unemployed   6,000   workers  as  adver:sed  vacancies.    S:ll,  this  represents  a   8,000   significant  and  con:nued  improvement  over  2011  and   5,000   2010,  when  the  supply/demand  rates  were  3.2  and  4.1   respec:vely.   6,000   4,000   The  labor  market  con:nues  to  be  :ght  for  professional   workers,  with  five  occupa:onal  groups—business  and   4,000   3,000   financial  opera:ons;  computer  and  mathema:cal   science;  architecture  and  engineering;  life,  physical   2,000   2,000   Apr  09   Apr  10   Apr  11   Apr  12   Oct  09   Oct  10   Oct  11   Oct  12   and  social  science;  and  healthcare  prac::oners—   Jul  09   Jul  10   Jul  11   Jul  12   Jan  09   Jan  10   Jan  11   Jan  12   showing  greater  demand  than  available  workers   (supply/  demand  ra:os  below  1.0).     #  of  unemployed  workers   #  of  online  ads         “Labor  demand  rose  across  the  na:on  in  December,  with  the  largest  gain  in  the  Northeast.  All  in  all,  2012     and  2011  ended  with  the  same  monthly  average  gain  of  about  50,000.”         —    June  Shelp,  Vice  President,  The  Conference  Board,  January  3,  2013     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:  2013  COMPENSATION  FORECAST     COMPENSATION  SET  TO  RISE…..  BUT  NOT  BY  MUCH   Compensa>on   Employee  Reten>on     As  the  compe::on  for  top  talent  con:nues  to  heat  up,   Skills  Shortages   issues  such  as  skills  shortages  and  reten:on  of  key    Compe>>veness   employees  are  growing  in  importance.  Nearly  a  third  of  U.S.   companies  now  say  they  are  very  concerned  about   19%   31%   15%   24%   employee  reten:on,  up  from  less  than  20%  last  year,  and  the   11%   19%   percentage  of  employers  who  are  very  concerned  over  skills   shortages  has  nearly  doubled.     42%   38%   44%   38%   36%   34%   Employers  are  increasingly  becoming  more  willing  to  raise   pay  rates  in  order  to  address  some  of  those  concerns.  Nearly   2011   2012   2011   2012   2011   2012   three  quarters  of  U.S.  companies  plan  to  provide  higher   compensa:on  for  exis:ng  employees  in  2013,  and  almost   Concerned   Very  Concerned   half  will  bump  up  salary  offers  for  new  employees,  according   to  CareerBuilder  research.   AVERAGE  INCREASE  IN  SALARIES  IN  2013   Nearly  a  quarter  of  companies  say  that  the  average  pay  raise   for  current  employees  will  be  greater  than  4%.  But  most   salary  increases  will  be  at  the  low  end  of  the  scale,  between   1%-­‐3%   4%-­‐5%   6%-­‐10%   11%+   No  increase   Decrease   1%  and  3%,  for  both  new  and  exis:ng  employees.     Exis>ng  Employees   New  Employees   3%   4%   PLANNING  TO  INCREASE  PAY   50%   28%   26%   2013   72%   2012   62%   47%   2%   41%   32%   50%   7%   11%   Exis>ng  Employees   New  Employees   13%   2%   6%   Sources:    CareerBuilder  2013  U.S.  Job  Forecast;  Empsight  Interna:onal  Policies,  Prac:ces  &  Merit  Survey  15  
  • 16. Workforce Solutions Industry Insight FIRST QUARTER l 2013
  • 17. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS BUILDING  A  PIPELINE  OF  SKILLED  WORKERS     Despite  persistently  high  unemployment  rates  in  many  parts  of  the  globe,  companies  s>ll  report  an  inability  to  find  the  qualified  talent   that  they  need  to  grow  their  business.  According  to  McKinsey  and  The  Conference  Board,  demographic  shiSs,  skills  mismatches,  training   deficiencies,  and  high  growth  in  emerging  markets  are  among  the  forces  that  are  combining  to  intensify  the  shortage  of  skilled  workers.   GLOBAL  AND  REGIONAL  SHORTAGES   23%   Nearly  9  in  10  companies  are  experiencing  a  talent  shortage,  according   to  research  by  McKinsey,  with  significant  consequences  for  business   IN  WHAT  REGION  IS  EACH  TALENT  ISSUE  MOST  PRONOUNCED?   opera:ons.  Three  quarters  say  that  the  inability  to  find  skilled  workers   2%   con:nues  to  have  a  nega:ve  effect  on  their  business.     The  limited  availability  of   qualified  talent  for  open   24%   29%   31%   8%   Talent  shortages  are  evident  across  the  globe,  and  most  significant  in   posi:ons   Asia  and  North  America.  More  than  3  in  10  respondents  to  a  McKinsey   survey  said  that  the  limited  availability  of  talent  for  open  posi:ons  is   most  pronounced  in  Asia;  just  slightly  fewer  said  that  North  America  is   2%   seeing  the  greatest  scarcity  of  talent  overall.   The  scarcity  of  available  technical   28%   31%   24%   7%   workers  or  STEM  candidates   Of  par:cular  concern  is  the  lack  of  qualified  technical  talent  and  STEM   (science,  technology,  engineering  and  mathema:cal)  workers.  This   shortage  is  also  a  global  issue,  most  evident  in  Asia  and  North  America.   5%   4%   The  heightened  concern   Another  key  concern  is  building  a  talent  pool  of  future  leaders:  nearly   regarding  the  impact  of  delayed   23%   51%   11%   half  of  respondents  say  that  an  inadequate  supply  of  senior  managers  is   Baby  Boomer  re:rements   a  cri:cal  issue  on  a  global  scale.     2%   6%   87%     OF  COMPANIES  SAY  THAT  THEY  ARE   EXPERIENCING  A  TALENT  SHORTAGE   The  shrinking  talent  pipeline  for   senior  management  roles     48%   23%   17%   75%     SAY  THE  TALENT  SHORTAGE  CONTINUES  TO   NEGATIVELY  AFFECT  THEIR  BUSINESS   Globally   North  America   Europe   Asia   La:n  America/Caribbean   Source:  The  State  of  Human  Capital  2012,  McKinsey  &  Company  and  The  Conference  Board,  October  2012  17  
  • 18. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS BUILDING  A  PIPELINE  OF  SKILLED  WORKERS   As  the  war  for  skilled  talent  con>nues  to  ramp  up,  employers  are  seeking  innova>ve  ways  to  acquire  and  develop  workforces  that  will   deliver  superior  business  results.  Companies  need  to  understand  their  internal  needs  and  competencies  as  well  as  the  external  business   environment,  as  they  work  towards  a  fundamental  goal  of  building  and  managing  a  robust,  reliable  pipeline  of  qualified  workers.   23%   SOLUTIONS  TO  BRIDGE  THE  TALENT  GAP   Companies  are  looking  to  solve  the  talent  shortage  by  expanding  and   ACTIONS  TO  ADDRESS  THE  GLOBAL  TALENT  SHORTAGE   strengthening  their  internal  talent  pools,  and  at  the  same  :me,  increasing   engagement  with  outside  par:es  to  develop  a  broader  base  of  poten:al  workers.   Already  doing  this    A  high  priority   Many  companies  are  partnering  with  educa:onal  ins:tu:ons  and  governments  in   order  to  help  develop  workers  with  the  capabili:es  that  they  need.  These  types  of   Increase  use  of  mobility  programs   33%   24%   external  talent  strategies  are  more  common  in  emerging  markets,  including  La:n   across  the  company   America,  Africa,  and  the  Middle  East.   Develop/  broaden  rela:onships  with   43%   12%   Others  are  looking  to  more  effec:vely  leverage  the  workers  that  they  already   con:ngent  workforce  suppliers   have,  including  increasing  mobility  programs  and  recrui:ng  more  non-­‐tradi:onal   Increase  use  of  temporary/  con:ngent   workers,  such  as  re:rees,  for  part-­‐:me  or  project-­‐based  roles.   45%   8%   workers   More  than  four  in  ten  companies  say  that  they  are  increasing  use  of  temporary   Invest  in  external  educa:onal  systems   and  con:ngent  workers,  and  broadening  rela:onships  with  con:ngent  workforce   to  improve  workforce  readiness   42%   10%   suppliers,  in  order  to  improve  their  access  to  skilled  talent.     Partner  with  local  educa:onal   39%   13%   ins:tu:ons  to  shape  curricula   CURRENTLY  PURSUING  TALENT  STRATEGIES  WITH  EXTERNAL  PARTNERS*   Expand  talent  pools  by  recrui:ng  non-­‐ 27%   14%   tradi:onal  workers  (e.g.  re:rees)   53%   55%   45%   Engage  government  to  work  on   40%   13%   9%   32%   regulatory  barriers  to  impor:ng  talent   Promote  industry-­‐wide  coopera:on  to   9%   12%   North  America   APAC   Europe   La:n  America   Middle  East/   develop  talent   Africa   *External  partners  include  educa:onal  ins:tu:ons,  government,  and  other  industry  par:cipants.   Source:  The  State  of  Human  Capital  2012,  McKinsey  &  Company  and  The  Conference  Board,  October  2012  18  
  • 19. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KGWI:  THE  HIGHLY  VIRTUAL  WORKPLACE     As  the  boundaries  between  work  >me  and  free  >me  become  more  blurred,  employers  and  workers  alike  need  to  manage  their  use  of   mobile  technologies  in  order  to  strike  the  right  balance.  The  2012  Kelly  Global  Workforce  Index  (KGWI)  sheds  some  light  on  the  benefits   and  challenges  that  stem  from  the  emerging  phenomenon  of  24/7  workplace  connec>vity.   23%   THE  AROUND-­‐THE-­‐CLOCK  WORKER   According  to  the  latest  findings  from  the  2012  Kelly  Global   TIME  SPENT  CONNECTED  TO  WORK   %  WHO  SPEND  NO  TIME   Workforce  Index,  more  than  three  quarters  of  employees   OUTSIDE  THE  TYPICAL  WORKWEEK     CONNECTED  TO  WORK  OUTSIDE   spend  at  least  some  :me  each  week  connected  to  their   THE  TYPICAL  WORKWEEK   workplace  outside  their  typical  working  hours,  and  16%  say   Global   they  spend  more  than  ten  hours  of  personal  :me  every  week   16%   23%   29%   26%   engaging  with  their  work  via  mobile  technologies.     None   12%   Workers  in  the  APAC  region  are  more  likely  to  spend  their   <  5  Hours   leisure  :me  connected  to  work:  only  around  one  in  ten  APAC   12%   6-­‐10  Hours   workers  say  they  spend  no  :me  connected  to  their  jobs,  less   than  half  the  rate  of  those  in  EMEA  or  the  Americas.   49%   >  10  Hours   Americas   APAC   EMEA   %  WHO  AGREE  THAT  THE  USE  OF  MOBILE  TECHNOLOGY   CONNECTIVITY:  BENEFIT  OR  CURSE?   HAS  IMPROVED/INCREASED:     The  poten:al  downsides  that  come  with  24/7  connec:vity  to  the   workplace—increased  workloads,  intrusion  on  free  :me,  and  pressure  to   Produc>vity   Work-­‐life  balance   Fa>gue/Burnout   stay  connected—may  contribute  to  job  dissa:sfac:on.  Nearly  a  third  of   KGWI  respondents  said  that  working  remotely  aYer  hours  has  made  them   feel  fa:gued  or  burned  out.   53%   32%   But  flexible  and  mobile  access  to  work  also  has  a  number  of  benefits  for   40%   both  workers  and  employers.  The  ability  to  redefine  working  hours  can   promote  greater  work/life  balance.  And  more  than  half  of  KGWI   respondents  say  that  using  remote  technologies  improves  produc:vity.     Source:  Kelly  Global  Workforce  Index  2012  19  
  • 20. 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   As  companies  con:nue  to  expand  their  use  of  third  party  labor   Mi>ga>ng  and   Eric  S.  Williams,  Senior  Director,   and  outsourced  services,  governments  across  the  globe  are   Managing  Risk  -­‐   Global  Services  Procurement   ramping  up  their  scru:ny  and  regula:on  of  these  types  of  work   Con>ngent  Labor   Solu:ons,  Kelly  Services   constructs.  This  whitepaper  outlines  some  of  the  areas  of  key   concern  and  provides  some  ini:al  steps  to  take  to  manage  risks.   Anthony  Raja  Devadoss,  Vice   The  greater  the  propor:on  of  your  staff  that  make  it  into  the   Four  Reasons  to   President,  APAC,  KellyOCG   ‘engaged’  category,  the  higher  your  performance  is  likely  to  be   Improve  Employee   Charles  Bedard,  Vice  President,   on  almost  every  count.  This  e-­‐book  gives  you  key  insights  into   Engagement   Global  Strategy,  BullsEye  Evalua:on   how  engaged  employees  can  elevate  your  business  results.   Lance  J.  Richards,  GPHR,  SPHR,  Vice   President,  Office  of  Innova:on,  Kelly   AVend  this  webcast  to  find  out  how  the  changing  dynamics  of   The  Autonomous,   Services   the  modern  workforce  are  giving  rise  to  special  challenges  for   Empowered,  and  Highly   both  employees  seeking  to  advance  their  careers  and  employers   Virtual  Workforce   Megan  RaYery,  Director,  Americas   wishing  to  retain  the  best  talent.   Marke:ng,  Kelly  Services   To  register  for  webcasts  or  for  more  informa:on,  visit  www.kellyocg.com  20  
  • 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 © 2013 Kelly Services, Inc. Y0146kellyservices.com