Report with latest workforce and labor market trends in EMEA

1. europe, middle east and africa (emea) 2011
Talent Market Update

2. y
400
million
people
Younger, skilled workers from the east 0.7% The largest emerging
are gaining access to the traditionally uK/ireland are markets in EMEA:
projected to have
protected labor markets in the west. population growth rates
russia + turKey + egypt
Common fair pay and employment that are among the south africa + uKraine
strongest in Europe as
practices for temporary and migrant
immigration increases.
workers across the Eurozone, via the
AWD, are making it easier than ever for 29 years
workers to move freely across borders. and
younger
Despite economic uncertainty, many The age of two-thirds
countries are feeling the pinch of labor of the population in
middle east +
force shortages. Governments are taking
north africa
measures to attract skilled migrants
back to home soil and encourage
workforce 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repealed.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 Update
CoNTENTS
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 East
12 Wages and the labor marKet
Employment remains steady
The uneven labor market
Hiring activity remains fragile
Wage trends uneven
17 legislative update
More protection for agency workers
New focus to attract and retain workers
20 conclusion
21 references
22 about us
The 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 Update
What can We expect from emea in 2013? introduction
emea economic
outlooK
demographics
& population
as we consider the future for business across europe, the middle east and africa, we see trends
reflections of the same broad changes that are happening the world over. Wages and the
labor marKet
Mature, traditional economic labor trends will hold, while Switzerland, it’s clear that even legislative update
strongholds are being others will not. while Western Europe maintains
conclusion
challenged by new, emerging its economic dominance for
Throughout this new report, now, emerging markets will play
economies. Younger, skilled leif agnéus
references
workforces from the east we examine the trends and an increasingly important role about us
are finally gaining access to indicators that are shaping the in EMEA’s economy in 2013
protected 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 all
action to maximize workforce
of these markets, or just one,
participation and it’s easier than years. We provide updates
this report might just show you
ever for workers to move freely on major legislative changes,
another side of the region you
across borders. population and demographic
think you already know.
profiles, as well as our insights
New and growing opportunities into the overall labor market.
exist, but global economic
uncertainty is having its impact As the economic contributions leif agnéus
here, 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 Africa
4

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
trends
EMEA Economic Outlook
Wages and the
labor marKet
legislative update
conclusion
references
about us
5

6. EMEA Talent Market Update
groWth, recovery and ongoing pressures introduction
emea economic
outlooK
Growth, recovery
and ongoing
pressures
despite the fatigue many of us now feel regarding global economic uncertainty, business
An uneven outlook
confidence has yet to rebound strongly enough to put it behind us. for the region
Emerging markets
are gaining ground
Austerity measures and political groWth & recovery pressures
tensions continue to impact demographics
• Germany will continue to • Eurozone inflation will average & population
across the region, ensuring trends
lead the recovery in Western 2.5% in 2011 but government
growth remains modest through
Europe. The UK, Ireland, austerity measures should Wages and the
to 2013. Temporary inflation labor marKet
Italy, Spain and Portugal help reduce it in 2012.
spikes driven by commodity
will constrain regional legislative update
price increases will be curbed • The temporary spike in
performance due to conclusion
by still elevated unemployment inflation in the Middle East will
fiscal tightening.
rates, coupled with modest moderate, but remain among references
population growth and • Growth in Central/Eastern the highest in EMEA. about us
constrained GDP growth in Europe, led by Russia and
the Eurozone. • EU labor demand is rising, but
Poland, will outpace much
the number of unemployed
of EMEA.
The developing markets of workers remains 40% above
Africa, the Middle East and parts • Economic output in the pre-recession levels.
of Central and Eastern Europe Middle East and Africa
will buck this trend, albeit with • Economic output in Western
has already surpassed
some considerable constraints. Europe is not expected to fully
pre-recession levels.
recover until 2013.
6

7. EMEA Talent Market Update
an uneven outlooK for the region introduction
emea economic
outlooK
Growth, recovery
and ongoing
pressures
Many near-term economic indicators are trending positively across the region, but the outlook remains
An uneven outlook
modest and uneven, with stark differences between individual countries. The developing markets of for the region
Central and Eastern Europe, as well as the Middle East and Africa, are forecast to outpace the rest Emerging markets
are gaining ground
of Europe from an economic growth perspective. However, these markets are constrained by higher
inflation 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 Update
emerging marKets are gaining ground introduction
emea economic
outlooK
Growth, recovery
and ongoing
pressures
Western europe will maintain its economic dominance, but emerging markets will play an
An uneven outlook
increasingly important role in emea’s economy. for the region
Emerging markets
are gaining ground
Russia 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
& population
last year and is forecast to move trends
past 4th ranked Italy by 2013. 6% 6% Wages and the
By 2013, Turkey is forecast to 10% 11% labor marKet
move past the Netherlands to
legislative update
become the 7th largest regional
economy and Poland will conclusion
14% 54% 17% 47%
surpass 9th ranked Switzerland. references
The UK and Nordics will about us
remain a stable source of 16%
19%
economic output, with their
combined output remaining
just 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% nordics
8 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 the
Demographic &
labor marKet
legislative update
conclusion
population trends
references
about us
9

10. EMEA Talent Market Update
population peaKs and troughs introduction
emea economic
outlooK
demographics
& population
While Western europe will remain the dominant economic force in the region for the forseeable future, trends
population growth trends present a long-term challenge. the clear and striking population trends in Population peaks
and troughs
emerging markets are the single most powerful indicator of the shift that’s occurring in the region.
Focus on
emerging markets
With around 2.2 billion people, Central/Eastern Europe and Population growth will be Wages and the
labor marKet
EMEA’s population is forecast to the Middle East & Africa limited in Central/Eastern
grow at an average rate of 1.4% represent more than 80% Europe as Hungary, Poland, legislative update
through 2013. The strongest of EMEA’s population. and Russia are all expecting
conclusion
growth will come from the population declines through
UK and Ireland are projected to references
Middle 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 Update
focus on emerging marKets introduction
emea economic
outlooK
demographics
& population
The focus of the future labor population groWth, 2011–2013 trends
market is shifting towards Population peaks
EMEA and troughs
emerging markets. These 1.4% Focus on
large markets are growing and emerging markets
gaining greater mobility, and Wages and the
the population is young – a stark CENTRAL/EASTERN EUROPE labor marKet
contrast to the flat and ageing 0.2%
legislative update
population of Western Europe.
WESTERN EUROPE
conclusion
0.2%
With a combined population
references
of nearly 400 million, Russia, NORDICS
Egypt, Turkey, South Africa and about us
0.4%
the Ukraine represent some of
the largest emerging markets IRELAND/UK
in EMEA. In the Middle East & 0.7%
North Africa, an incredible
MIDDLE EAST & AFRICA
two-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 activity
Wages and the labor market
remains fragile
Wage trends
uneven
legislative update
conclusion
references
about us
12

13. EMEA Talent Market Update
employment remains steady introduction
emea economic
outlooK
demographics
& population
Generally, the outlook for unemployment rate*, 2009–2013 trends
employment through 2013 2013
Wages and the
13.5
remains steady. A decline in labor marKet
12.2
12.9
2011
11.5 Employment
unemployment across Europe is 10.9 11
10 2009 2009 remains steady
expected, with significant falls in 9.2 9.5 9.2 The uneven
8.4 8.6 8.3
central and eastern Europe and 7.5
2011 labor market
7.2
6.8 6.8 6.7
a smaller decrease in the west. 2013 Hiring activity
remains fragile
There are some exceptions
Wage trends
that will experience modest uneven
increases in unemployment
legislative update
by 2013, including the UK and NORDICS CENTRAL/ IRELAND/UK WESTERN EUROPE MIDDLE EAST EMEA
EASTERN EUROPE & AFRICA
Ireland, as well as the Middle conclusion
East 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 Update
the uneven labor marKet introduction
emea economic
outlooK
demographics
& population
from Q2 2010 to Q1 2011 quarterly job growth in the eu has been mostly flat. there has been trends
uneven labor market performance across emea, with strength in germany, central/eastern europe Wages and the
and 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
Q2'08 0.1 1.2
Q3'08 -0.1 0.7
Q4'08 -0.3 0.2
Q1'09 -0.7 -1.1%
Q2'09 -0.7 -1.8
Q3'09 -0.4 -2.2
Q4'09 -0.2 -2.1
Q1'10 -0.2 -1.5
hiring activity remains fragile Q2'10
Q3'10
0.2
0.1
-0.6
-0.1
introduction
Q4'10 0 0.2
emea economic
outlooK
demographics
& population
EU unemployment rates have Around two-thirds of the eu: employment groWth rates (Q2 2008—Q4 2010) trends
fallen slightly over the past population in the Middle East 1.2 Wages and the
Quarter-over-Quarter labor marKet
year, but the number of & North Africa is aged under
unemployed workers is still 29 years, raising prospects of year-over-year Employment
0.7 remains steady
40% above pre-recession levels. continued high unemployment The uneven
QUARTER-O
While there is clearly plenty in the region. 0.2 0.2 0.2
labor market
0.1 0.1
of good news across the 0 Hiring activity
YEAR-OVER-
Spanish unemployment will remains fragile
region, the pace of hiring is -0.1 -0.1
remain above 17% through -0.2 -0.2 Wage trends
yet to materialize into large- -0.3
-0.4
uneven
2014. Unemployment in
scale gains. -0.6
Portugal and Ireland are -0.7 -0.7 legislative update
By the end of 2010, EU forecast to remain above conclusion
-1.1
employment had stabilized 10% through 2014.
references
at 221 million, representing -1.5
UK unemployment claims
a year-on-year growth rate -1.8
about us
increased in July 2011 at
of just 0.2%. -2.1
the sharpest pace in more than -2.2
two years as the public sector Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10
sheds jobs.
15 Source: Eurostat

16. EMEA Talent Market Update
Wage trends uneven introduction
emea economic
outlooK
demographics
& population
Wage growth trends differ trends
belgium: Failure to negotiate hungary & poland: The
significantly 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% Employment
Recent wage growth has been
through to 2012. respectively in 2011. remains steady
muted across the EU— average The uneven
hourly wages grew just 1.9% labor market
throughout 2010, compared to Hiring activity
remains fragile
3 to 4% prior to the recession.
Wage trends
Higher inflation is causing wages uneven
to grow faster across Central/
legislative update
Eastern Europe, while markets
struggling to recover from the conclusion
germany: Wage growth is
debt crisis (Greece, Ireland) currently flat, but will accelerate references
are seeing wages fall with as the labor market approaches
about us
austerity 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 to
Legislative Update
attract and
retain workers
conclusion
references
about us
17

18. EMEA Talent Market Update
more protection for agency WorKers introduction
emea economic
outlooK
demographics
& population
Governments in both mature uK: Steps to make the trends
denmark: Talks to clarify
and developing economies employment tribunal system Wages and the
liability for agency worker labor marKet
are establishing common fair more ‘employer/recruiter-
claims continue.
pay and employment practices friendly’ are being taken. legislative update
under the EU Agency Workers More protection
for agency workers
Directive (AWD). This will see
New focus to
a more level playing field for attract and
agency workers, and could retain workers
drive increases in this conclusion
employment market.
references
germany: An Act to
In addition to implementing safeguard temporary about us
the AWD by the end of employees is being
2011, further protections belgium: Clarified the
introduced.
for temporary workers are obligations of temporary
being considered in various staffing agencies and
countries, 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 Update
neW focus to attract and retain WorKers introduction
emea economic
outlooK
demographics
& population
Job creation remains a uK: The ‘Get Britain germany: Workers from trends
legislative priority in several Working’ program provides eight Eastern European Wages and the
markets, but many countries countries can now work labor marKet
unemployed 18-21 year-olds
are now feeling the pinch of eight weeks’ work experience without a permit. legislative update
labor force shortages and without losing benefits. More protection
for agency workers
are turning their focus to The default retirement age
New focus to
attracting and retaining of 65 is repealed on attract and
skilled talent. Measures to 1 October 2011. retain workers
attract skilled migrants back conclusion
to home soil and encourage
references
workforce participation are
gaining 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 Update
conclusion introduction
emea economic
outlooK
demographics
& population
new fronts in economic, population and labor market strength are taking shape across emea. trends
over the coming years, we will see significant changes as emerging markets begin to exert Wages and the
greater 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 Update
references introduction
emea economic
outlooK
demographics
& population
the 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
G
21

22. ABoUT KELLY SERvICES®
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