2. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
Source: IHS Global Insight (October 2016). Annual average estimated/projected growth in real GDP and annual average estimated/projected unemployment rates.2
India
Australia
China
Japan
France
Germany
Russia UK
Brazil
Canada
US
Mexico
WORLD
0%
2%
4%
6%
8%
10%
12%
0% 2% 4% 6% 8%
UnemploymentRate(2017p)
GDP Growth (2017p)
As 2016 draws to a close, global economic growth is projected to come in at a subdued 2.4% for the year, the fifth consecutive year below 3%.
A slight acceleration to 2.8% is predicted for 2017 as growth in North America continues, South America and Russia see some recovery activity,
and APAC markets remain relatively strong. A positive outlook for global labor markets is also forecast, with unemployment continuing to
decrease as economic activity improves. Despite this rosy outlook, significant risks exist including the implications of new government
administrations in several countries (particularly the US), the onset of the Brexit process, and financial market volatility.
Q 4 ‘ 1 6
G L O B A L E C O N O M I C &
L A B O R M A R K E T S N A P S H O T
0% 1% 2% 3% 4% 5% 6%
2019p
2018p
2017p
2016e
G D P G r o w t h
WORLD
AMER
EMEA
APAC
0% 2% 4% 6% 8% 10% 12%
2019p
2018p
2017p
2016e
U n e m p l o y m e n t R a t e
WORLD
AMER
EMEA
APAC
3. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
Sources: IHS Global Insight (November 2016); SIA North America Legal Update, Q3 2016; SIA Daily News, 09.06.16, 11.23.163
Consumer and business sentiment appear to be improving
somewhat, but Brazil’s recession continues. Recovery is
expected to be slow, as high inflation curbs spending and
there is little room for fiscal intervention. Conditions in
the labor market are expected to remain difficult.
1.2%
2.0% 2.2% 2.2%
7.0% 6.9% 6.6% 6.4%
2016 2017 2018 2019
GDP Growth Unemployment
As oil prices are expected to strengthen, so should the
Canadian economy and labor market. Employment growth,
which has been below 1% for the past three years, is
forecast to accelerate, driving down unemployment.
Modest gains in wages are also expected.
The US economy and labor market are entering 2017 in
good shape, but the implications of a new presidential
administration are yet to be determined. There will likely
be some major policy changes, and expectations are that
interest rates and inflation will rise in the short term.
Although the solid outlook for the US economy is a positive
factor for Mexico, negative sentiments towards the
country voiced by president-elect Trump have dampened
the forecast for the Mexican economy. The unemployment
rate may rise slightly as job creation cools.
A M E R
-3.3%
0.5%
2.1% 3.4%
10.5%
9.5% 9.4% 9.2%
2016 2017 2018 2019
GDP Growth Unemployment
In the wake of the US election, some uncertainties have been solved but many still remain as it is unclear what policies president-elect Trump will
pursue. Despite this lingering unpredictability, the economic and labor market outlooks for North American markets are positive for 2017. South
American economies are also forecast to see an upturn in 2017, although Brazil and Venezuela will struggle to climb out of deep recessions.
BRAZIL
CANADA
1.5%
2.2% 2.2% 2.2%
4.9% 4.7% 4.6% 4.6%
2016 2017 2018 2019
GDP Growth Unemployment
US
2.1% 2.1% 2.9% 3.2%
4.0% 4.1% 4.0% 3.9%
2016 2017 2018 2019
GDP Growth Unemployment
MEXICO
L E G I S L A T I V E
H I G H L I G H T S
U N I T E D S T A T E S
A federal judge temporarily blocked
the new overtime exempt rule that
was scheduled to become effective
on December 1, 2016. Under the
new rule, the minimum salary for an
employee to be exempt from
overtime pay was set to increase
from $23,660 to $47,476.
B R A Z I L
The new government of Michel
Temer has pledged to introduce an
overhaul of the country’s
outsourcing legislation. Currently,
outsourcing is only permitted for
“non-essential” jobs, but there is
considerable uncertainty around
what is considered “non-essential.”
C A N A D A
The Canadian government released a
review of the Temporary Foreign
Worker Program in September 2016.
The review, which is facing criticism
for both its brevity and its content,
provides recommendations on
easing limitations on temporary
foreign worker hiring.
4. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
4
Economic growth is expected to be subdued in 2017 as
uncertainty from the external European environment as
well as the upcoming spring election weighs on activity.
Although recent reforms will introduce some flexibility in
the labor market, the employment situation remains fragile.
1.8% 1.7% 1.7% 1.6%
6.1% 6.1% 6.2% 6.2%
2016 2017 2018 2019
GDP Growth Unemployment
Germany’s economy is forecast to remain on a solid
growth path, buoyed by consumer spending and
increasingly by investment. The unemployment rate
remains at historically low levels, although the influx of
refugees may raise rates slightly in the near term.
The official EU exit process is expected to begin by the end
of March 2017, ushering in uncertainty in the economy. The
labor market, which had shown some resilience in the
aftermath of the Brexit vote, is also expected to lose some
momentum as business confidence falters.
As oil prices recover, so too will the Russian economy;
however, growth is still expected to come in below 1% for
2017. Despite reports of job losses in both services and
manufacturing, the unemployment rate remains relatively
low, suggesting some level of underemployment.
E M E A
1.2% 0.9% 1.3% 1.2%
10.0% 9.8% 9.6% 9.6%
2016 2017 2018 2019
GDP Growth Unemployment
FRANCE
GERMANY
2.1%
1.2% 1.2% 1.5%
5.0% 5.3% 5.8% 6.1%
2016 2017 2018 2019
GDP Growth Unemployment
UK
-0.6%
0.8%
1.6% 2.1%
5.7% 5.7% 5.1% 4.9%
2016 2017 2018 2019
GDP Growth Unemployment
RUSSIA
L E G I S L A T I V E
H I G H L I G H T S
U K
Prime Minister Theresa May has
ordered a review of the country’s
labor laws. The emphasis will be on
examining job security, pay, and the
rights of workers, particularly for self-
employed, temporary, and zero hours
contract workers.
G E R M A N Y
Amendments to the Labor and Social
Affairs Employment Act (AUG) were
approved by the German government.
The new regulations stipulate that
temporary workers may only be used
for 18 months (unless a collective
agreement governs a longer duration),
and that temporary workers should
also receive the same wages as the
permanent staff after nine months.
The proposed changes will come into
effect on April 1, 2017, as opposed to
the previous date of January 1, 2017.
Labor markets continue to improve across western Europe, but many still face challenges including high youth unemployment. Uncertainty
stemming from the start of the Brexit process and elections upcoming in 2017 is weighing on economic forecasts for many European markets.
Rising oil prices should help Russia and many Middle Eastern economies, but geopolitical, fiscal, and structural challenges remain.
Sources: IHS Global Insight (November 2016); SIA EMEA Legal Update, Q3 2016; SIA Daily News, 10.24.16, 10.12.16
F R A N C E
France’s parliament adopted
controversial labor law reforms that
are aimed at making layoffs easier, in
effect from August 2016.
5. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
5
Continued healthy expansion is predicted for the Australian
economy, driven in part by several new liquefied natural gas
projects in the coming years. The increased investment is
expected to help boost job creation, but higher labor force
participation may moderate large gains in unemployment.
7.1% 7.5% 7.5% 7.8%
8.6%
7.9%
7.5% 7.4%
2016 2017 2018 2019
GDP Growth Unemployment
China’s gradual economic slowdown is expected to persist
in 2017. The subdued economy, along with record numbers
of university graduates, is leading to "slow employment“
among young people, who are pursuing further studies,
entrepreneurship or taking a gap year rather than working.
Steady and modest growth for the Japanese economy will
be underpinned by government stimulus. The labor market
remains very tight with steady employment demand and
historically low unemployment levels; however, lower
corporate profits are limiting wage growth.
The Indian government's sudden recall of the two largest
denomination currency notes is expected to curb growth
prospects in the short term, as liquidity issues may disrupt
household and business spending. The move was
intended to help reduce India's black-market economy.
A P A C
2.8% 2.5% 2.7% 2.9%
5.7% 5.6% 5.5% 5.5%
2016 2017 2018 2019
GDP Growth Unemployment
Despite some tempering of economic activity in the major growth engines of China and India, APAC is still expected to outpace all other regions.
The labor market outlook for APAC is similarly healthy as job creation continues and unemployment is on a downward trend.
AUSTRALIAINDIA
0.6% 0.7% 1.0% 0.6%
3.1% 3.2% 3.2% 3.3%
2016 2017 2018 2019
GDP Growth Unemployment
JAPAN
6.7% 6.4% 6.4% 6.4%
4.1% 4.1% 4.1% 4.0%
2016 2017 2018 2019
GDP Growth Unemployment
CHINA
L E G I S L A T I V E
H I G H L I G H T S
I N D I A
The recent session of parliament saw
reform activity on several labor laws.
One bill seeks to extend and
enhance maternity leave provisions,
while another aims to increase the
compensation amount provided to
workers in the case of industrial
accidents. The Child Labor law was
also amended to ban employment of
children under 14 across all sectors,
prohibits the employment of those
aged 14-18 years in hazardous
occupations, and introduces more
stringent punishments for offenders.
S I N G A P O R E
An employment pass or permanent
resident status is required for all
foreign professionals, managers, and
executives who work in Singapore.
As of January 1, 2017, the qualifying
salary for Singapore Employment
Pass applications will increase from
$3,300 to $3,600 per month.
Sources: IHS Global Insight (November 2016); SIA APAC Legal Update, Q3 2016; Straits Times, 11.24.16
6. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
8.4%
6.4%
5.0%
2.8% 2.5% 2.3% 1.6% 1.1%
Italy Spain Mexico France US UK Canada Australia
6
W O R L D
G L O B A L TA L E N T S P O T L I G H T :
Y O U T H W O R K F O R C E
T A P P I N G T H E V A S T P O T E N T I A L O F Y O U N G W O R K E R S
Young workers are a strategic asset for countries, representing the future of their labor force –
but new research from PwC shows that while some countries are succeeding in developing their
young labor force, others are losing out on opportunities.
PwC developed the Young Workers Index, which measures how well OECD countries are
developing the economic potential of their younger workers over time. The index is a weighted
average of several indicators that reflect the labor market impact and educational participation
of people from ages 15 to 24.
Which countries perform best at developing young talent? Core European and Nordic countries
lead the list, comprising the top seven spots, with Switzerland and Germany at the top. Germany
in particular has seen significant improvement in the outlook for young workers over the past
decade, boosted by a strong vocational training framework and reforms that have increased
labor market flexibility. Many Southern European countries, on the other hand, are still struggling
to recover from the harsh impact the economic recession had on the young workforce.
PwC estimates that the economic potential that is being lost by countries that are not taking full
advantage of their young workforce may be tremendous. Combined, OECD countries could add
over $1 trillion to their total GDP over the long term if laggard countries matched the level of
young worker engagement seen in Germany.
Source: PWC Young Workers Index 2016
P O T E N T I A L L O N G T E R M B O O S T T O G D P
F R O M D E V E L O P I N G Y O U N G T A L E N T
Y O U N G W O R K E R S I N D E X :
S E L E C T E D O E C D C O U N T R I E S
0 20 40 60 80
Italy
Greece
Spain
Portugal
Turkey
Mexico
Ireland
Belgium
France
UK
Korea
OECD AVERAGE
Finland
New Zealand
Sweden
Japan
Australia
Israel
US
Canada
Netherlands
Denmark
Norway
Iceland
Austria
Germany
Switzerland
2015
2006
*Total across 30 OECD countries:
$1.1 trillion
$1.1T represents only 30 of 35 OECD countries for which all data was available
YOUNG WORKERS INDEX
INDICATORS INCLUDE:
• NEET rates (young people
not in employment,
education, or training)
• Employment rates
• Unemployment rates
• School drop-out rates
• Educational enrollment
rates
7. G l o b a l T a l e n t M a r k e t Q u a r t e r l y
7
I N D U S T R Y
W O R K F O R C E S O L U T I O N S S P O T L I G H T :
H R T E C H N O L O G I E S
Sources: HR Technology Disruptions for 2017, Deloitte by Bersin 2016; HR Technology is Helping to Change the Entire Work Culture, TLNT 2016; Talent Tech Labs
T A L E N T R E L A T I O N S H I P & T E C H N O L O G Y D I S R U P T I O N S
With the talent industry poised at a shift in both management philosophies and
technologies, there is a great deal of opportunity for disruption: the marketplace is
shifting from tools that automate traditional HR practices to platforms and apps that make
life at work better. Driven by massive technological change—the shift from cloud to
mobile; the explosion in analytics and artificial intelligence; and the emergence of video,
social systems, and wearables—HR platforms are changing. And even more importantly,
the way we manage people has changed, making many of the traditional HR systems from
only a decade ago seem out of date.
When HR technology providers emerged in the 1990s and early 2000s, their primary
business objectives were to automate and integrate traditional human resources
processes such as hiring, payroll and training. More recently, the HR technology market
has consolidated, moving rapidly toward cloud-based solutions and introducing people
analytics, as organizations leverage data to help attract and retain top talent.
Now as we move toward 2017, new research by Deloitte finds that next generation HR
systems will be people- rather than process-focused, offering solutions that contribute to
employees’ work experience, engagement levels and work-life balance needs. Examples of
these next generation solutions include “always on” engagement and social recognition
tools, mobile learning apps, and enhanced gig worker platforms offering free agents and
organizations alike new tools and systems to help get work done. These, and other HR
technologies focused on enabling a more fluid, connected and self-directed workforce, will
not only improve the talent experience, but may lead to better business outcomes as well.
“Today, companies are far less focused on automating and integrating their talent
practices. Instead, they are worried about employee engagement, teamwork,
innovation, and collaboration. They want HR tech solutions that are engaging,
useful, and productivity-oriented. Integrated talent management is still important,
but it has become a “hygiene” problem. The real focus is on reinventing how people
work; creating team-based tools for goal alignment and coaching; putting in place
systems to provide feedback and measure engagement; and rethinking the way we
measure performance, manage careers, and enable individual learning.”
― HR Technology Disruptions for 2017, Deloitte by Bersin
2000 2016 & beyond
AUTOMATE
HR process
automation
INTEGRATE
Integrated
talent
management
ENGAGE
Cloud-based
and data
driven
EMPOWER
Apps that
make work
life better
progression over time
Benefits/
compensation
administration
HRIS
ATS
Sourcing/
recruiting
Learning
management
Integrated/ cloud-based
workforce management
Performance
management
Succession
management
Analytics
Social
integration
Real-time
engagement
Mobile, self-service
Culture & team
connection
Proactive
learning
Wellness
E V O L U T I O N O F
H R S Y S T E M S
Freelance
Marketplace/
Management
Employer
Reviews
Automated
Referrals
Crowdsourced
Recruitment
Candidate
Relationship
Management
Job
Marketing/
Distribution
Resume
Parsing
Talent
Matching
Systems
Job Boards
Skills/
Psychometric
Assessment
Recruitment
Marketplaces
Social Search
Social CV/
Resume
Building
Career
Advice/
Coaching
Video
Interviews
T A L E N T
T E C H
S E L E C T E D
A R E A S
O F
F O C U S