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APAC Talent Market Update
population, employment, wage and labour legislation
trends in five key countries in the Asia-Pacific region:
Australia, China, India, Japan and New Zealand
2012/2013
workforce Trends in APAC
Training, Mobility                                                 wage growth forecast – 2012 estimate                                                   Median Age
                                                                   With a projected region-wide unemployment level of just 7% by 2013,
and Flexibility                                                    the labour market outlook has shown resilience to global upheaval.
APAC’s ongoing prosperity and
development will depend somewhat                             12%
on specific and deliberate responses
                                                                                                                                                           45               38               37          36               26
                                                                                                                                                           Japan            Australia        new         china            india
to growing demand for skills,                                                                                                                              Average age is                    zealand     The median       Approximately
experience and flexible labour across                                                                                                                      the second                                    age is above     one-third is
the region. As with other markets                                                                                                                          oldest in                                     the world        below the age
                                                                                                                                                           the world.                                    average of 28,   of 15 and only
around the world, the focus must                                                                                                                                                                         with declines    5% are over 65.
be on equipping the workforce with                                                                                                                                                                       in the working
                                                       10%
                                                                                                                                                                                                         age population
the right skills, and this presents
                                                                                                                                                                                                         expected
significant challenges for developing                                                                                                                                                                    by 2016.
countries with large populations.


                                                                                                                                                          4.2 billion people live
                                        8%                                                                                                                in the apac region,
                                                                                                                                                          more than half of the world’s
                                                                                                                                                          estimated 6.9 billion people.




                                 6%




                  4%
                                                                                                                                 By 2014, it’s                                                              The Australian
                                                                                                                             estimated China’s                                                         Government is seeking
                                                                                                                           surplus labour supply                                                          a 60% increase in
                                                                                                                           will dry up, prompting                                                        skilled immigrants
                                                                                                                           hikes in wages, costs                                                         under the Regional
                                                                                                                                 and inflation.                          India represents               Sponsored Migration
                                                                                                                                                                        the single largest                     Scheme.
                                                                                                                                              Together, India             pool of young,
     2%                                                                                                                                     and China represent        potentially skilled
                                                                        e




                                                                                                                                                40%
                                                                     ea




                                                                     ag




                                                                                                                                                                      labour in the world.
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                                                                                                                                                 population.
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                                                       APAC
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APAC Talent Market Update




     contents



		       4	Introduction

		 5	APAC Economic Outlook
			    Growth, recovery and ongoing pressures

		 7	Population, labour market and wage trends
			   It’s the world’s most populous region
			   Employment holds steady in the face of numerous challenges
			   High employment will compound skills shortages
			   All eyes turn to China and India
			   APAC workers can expect higher salaries

		   13	      industry outlook
		     	      Biotech, Contruction and Energy among the growth industries

		 15	Growth industries by country
			    Australia / China / Hong Kong / India / Japan / New Zealand

		 21	Legislative update
			    Governments take steps to combat talent shortages

		 23	Country summaries
			    Australia / China / Hong Kong / India / Indonesia / Japan / Malaysia / New Zealand / Singapore

		   29	      conclusion

		   30	      about us


		
     3
APAC Talent Market Update / Introduction




                                                                                                                                                   Introduction

                                                                                                                                                   APAC Economic
                                                                                                                                                   Outlook
what can we expect from APAC in 2013?
                                                                                                                                                   population,
                                                                                                                                                   labour &
                                                                                                                                                   wage trends

                                                                                                                                                   industry outlook

Emerging markets are playing an increasingly important role in the global economy.
                                                                                                                                                   growth
As the world’s most populous region, Asia-Pacific is central to this shift.                                                                        industries by
                                                                                                                                                   country

                                                                                                                                                   legislative update
Economic uncertainty is            India may still have one         to skilled migration, as         on major legislative changes,
having its impact here, as it is   of the highest official          well as supporting growth        population and demographic                    Country
                                                                                                                                                   summaries
everywhere, yet the business       unemployment rates in            industries and shoring up        profiles, as well as our          Dhirendra
                                                                                                                                       Shantilal
and labour market outlook          the region, but it also          consumer and business            insights into the overall                     conclusion
for Asia is now the exception      presents one of the biggest      confidence. Cash reserves        labour market.
                                                                                                                                                   about us
to a seemingly global rule.        opportunities for the            are relatively high and
                                                                                                     All eyes are on what happens
                                   region, with a young and         debt is moderate by world
Some industries in the                                                                               next in Asia. In this report,
                                   well-positioned workforce.       standards, so the region
region’s developed                                                                                   we hope to give you a small
                                   China continues to dominate      overall occupies an
economies (particularly                                                                              insight into just what that
                                   the economic landscape,          enviable position to absorb
manufacturing and other                                                                              might look like.
                                   yet the impact of growth is      further instability.
primary industries) are
                                   now being felt much further
seeing long-term declines.                                          In this report, we examine
                                   afield, and investments in
Yet, the over-riding theme                                          the trends and indicators that   Dhirendra Shantilal
                                   education across Asia are
is one of growing demand                                            are shaping the economic         SVP Kelly Services Asia Pacific
                                   reaping rewards.
for technical skills, and a                                         and labour market outlook
higher proportion of skilled       Legislative trends continue      for the Asia-Pacific region
employees across the Asian         to focus on up-skilling labour   over the next two to three
working population.                forces and reducing barriers     years. We provide updates




4
APAC Talent Market Update / APAC Economic Outlook




                                                    Introduction

                                                    APAC Economic
                                                    Outlook
                                                     Growth, recovery
                                                     and ongoing
                                                     pressures

                                                    population,
                                                    labour &
                                                    wage trends

                                                    industry outlook

                                                    growth
                                                    industries by




APAC Economic Outlook
                                                    country

                                                    legislative update

                                                    Country
                                                    summaries

                                                    conclusion

                                                    about us




5
APAC Talent Market Update / APAC Economic Outlook




                                                                                                                                                                 Introduction

                                                                                                                                                                 APAC Economic
                                                                                                                                                                 Outlook
Growth, recovery and ongoing pressures                                                                                                                            Growth, recovery
                                                                                                                                                                  and ongoing
                                                                                                                                                                  pressures

                                                                                                                                                                 population,
                                                                                                                                                                 labour &
                                                                                                                                                                 wage trends
Despite Northern Asia’s
current economic dominance         Growth & recovery                                               Pressures                                                     industry outlook
in APAC, Southern Asia’s           Å With a projected region-    Å Despite an ageing               Å It is estimated that around   Å Global financial
                                                                                                                                                                 growth
more favourable demographic        wide unemployment level       working population across         half of the region’s workers    uncertainty could continue    industries by
                                                                                                                                                                 country
profile offers a clear long-term   of just 7% by 2013, the       the region, India presents        (50.8 %) are in ‘vulnerable     to negatively impact
economic opportunity within        labour market outlook has     the single largest pool           employment’. Although           recruitment.                  legislative update
the region.                        shown resilience to global    of young, potentially             employment statistics have
                                                                                                                                                                 Country
                                                                                                                                   Å Japan’s average age is
                                   upheaval. Several countries   skilled labour in the world.      held steady throughout                                        summaries
With wage growth and skilled                                                                                                       now approaching 45 (the
                                   saw their unemployment        Approximately one-third of        global recession fears, it                                    conclusion
labour shortages in some                                                                                                           second oldest in the world)
                                   peak earlier, and at lower    India’s population are below      is likely that many workers
markets, growth will depend                                                                                                        and China’s population        about us
                                   levels, than expected.        the age of 15 and only 5%         affected by the crisis have
upon flexibility and mobility                                                                                                      policies have pushed the
                                                                 are over 65, implying a falling   sought alternate forms of
of workforces, as well as the                                                                                                      median age above the world
                                                                 dependency ratio and a            employment, perhaps in the
timely action of governments                                                                                                       average, with declines in
                                                                 significant increase in the       informal economy.
and corporates to stem                                                                                                             the working age population
                                                                 working population.
productivity constraints.                                                                                                          expected by 2016.




6
APAC Talent Market Update / Population, Labour & Wage Trends




                                                               Introduction

                                                               APAC Economic
                                                               Outlook

                                                               population,
                                                               labour &
                                                               wage trends
                                                                World’s most
                                                                populous region
                                                                Employment
                                                                holds steady
                                                                Skills shortages




Population, Labour
                                                                China and India
                                                                Higher salaries

                                                               industry outlook




& Wage Trends
                                                               growth
                                                               industries by
                                                               country

                                                               legislative update

                                                               Country
                                                               summaries

                                                               conclusion

                                                               about us




7
APAC Talent Market Update / Population, Labour & Wage Trends




                                                                                                                                             Introduction

                                                                                                                                             APAC Economic
                                                                                                                                             Outlook
It’s the world’s most populous region
                                                                                                                                             population,
                                                                                                                                             labour &
                                                                                                                                             wage trends
                                                                                                                                              World’s most
                                                                                                                                              populous region
The APAC region is home                 the age of 15 and only 5%        median age by country: 2011                                          Employment
                                                                                                                                              holds steady
to more than 4.2 billion                are over 65, implying a
                                                                         50                                                                   Skills shortages
people. It accounts for more            steady rise in the working-
                                                                                                                                              China and India
than half of the world’s                age population and a falling
                                                                                                                                              Higher salaries
estimated 6.9 billion people,
                    EMEA                dependency ratio (proportion     40
                                                      1.4%

including 6 of the 10 highest           of non-working population to                                                                         industry outlook

population countries: China, EUROPE
                    CENTRAL/EASTERN     working population).
                                                                         30                                                                  growth
                      0.2%
India, Indonesia, Pakistan,                                                                                                                  industries by
                    WESTERN EUROPE      In contrast, Japan’s average                                                                         country
Bangladesh, and Japan.0.2%
                                        age is now approaching 45        20                                                                  legislative update
                    NORDICS
China and India together   0.4%
                                        (the second oldest in the
                                                                                                                                             Country
represent almost 40% of the
                    IRELAND/UK
                                        world) and China’s policies to                                                                       summaries
                                                                         10
world’s population, more than control population growth in
                                     0.7%

                                                                                                                                             conclusion
the population of the next 20 the 1970s have pushed the
                    MIDDLE EAST & AFRICA



largest countries combined.             median age above the world        0                                                                  about us
                                                                                Japan      Australia   New Zealand   China   World   India
                                        average, with declines in
Approximately one-third of              the working age population
India’s population are below            expected by 2016.




8
6%
APAC Talent Market Update / Population, Labour & Wage Trends
                                              4%


                                              2%

                                                                                                                                                                                                             Introduction
                                              0%
                                                    China   Hong Kong     Japan   South Korea       India       Indonesia   Malaysia    Philippines    Singapore   Thailand    New Zealand       Australia
                                                                                                                                                                                                             APAC Economic
                                                                                                                                                                                                             Outlook
Employment holds steady in the face of numerous challenges
                                                                                                                                                                                                             population,
                                                                                                                                                                                                             labour &
                                                                                                                                                                                                             wage trends
                                                                                                                                                                                                              World’s most
                                                                                                                                                                                                              populous region
Labour markets are clearly                    unemployment rate: 2009–2013                                                                                                                                    Employment
                                                                                                                                                                                                              holds steady
on the mend, and in several
                                              10%                                                                                                                                                             Skills shortages
countries unemployment
                                                                                                                                                                                                      2009
                                                                                                                                                                                                              China and India
has peaked earlier and at                     8%                                                                                                                                                      2011
                                                                                                                                                                                                              Higher salaries
lower levels than predicted.                                                                                                                                                                          2013
Unemployment across APAC                      6%                                                                                                                                                             industry outlook
is forecast to continue its
                                              4%                                                                                                                                                             growth
gradual downward trend,                                                                                                                                                                                      industries by
                                                                                                                                                                                                             country
approaching 7% by 2013.                       2%
                                                                                                                                                                                                             legislative update
                                              0%
                                                            Asia Pacific                         Northern Asia                          Southern Asia                          Pacific (Oceania)               Country
                                                                                                                                                                                                             summaries

                                               10                                                                                                                                                            conclusion
                                                                                                                                                                                                      2009
                                              estimated unemployment rate: 2012
                                                8                                                                                                                                                            about us
                                                                                                                                                                                                      2011
                                              10%                                                                                                                                                     2013
                                                6

                                              8%
                                               4

                                              6%
                                               2

                                              4%
                                               0
                                                            Asia Pacific                         Northern Asia                          Southern Asia                          Pacific (Oceania)
                                              2%

Sources: Global Insight; Forbes.com; Xinhau
News Agency; China’s Big Unemployment         0%
Problem—Marketplace From American                   China   Hong Kong     Japan   South Korea       India       Indonesia   Malaysia     Philippines   Singapore   Thailand     New Zealand      Australia
Public Media


9
APAC Talent Market Update / Population, Labour & Wage Trends




                                                                                                                                                                       Introduction

                                                                                                                                                                       APAC Economic
                                                                                                                                                                       Outlook
High employment will compound skills shortages
                                                                                                                                                                       population,
                                                                                                                                                                       labour &
                                                                                                                                                                       wage trends
                                                                                                                                                                        World’s most
                                                                                                                                                                        populous region
Å China created 12                 Å India’s unemployment         Å In Australia, forward-         Å Japan’s disasters caused         Å New Zealand’s                   Employment
                                                                                                                                                                        holds steady
million new jobs in 2011,          rates remain relatively high   looking indicators point to      unemployment to spike              employment growth will be
                                                                                                                                                                        Skills shortages
and maintained its 4.1%            due in part to their highly    a softening in the labour        above 5% in early 2011,            significantly limited by skill
                                                                                                                                                                        China and India
unemployment rate, yet this        restrictive labour laws,       market, with unemployment        then level off at 4.6 per          shortages in the construction
                                                                                                                                                                        Higher salaries
rate reflects urban registered     but the strong economic        inching back up to 5.2% in       cent. As the recovery effort       and engineering sectors
workers only and does              outlook is forecast to push    early 2012, but expected to      accelerates, the lag between       where labour demand              industry outlook

not take into account the          unemployment rate below        fall to just 4.5% by 2016 as     growth and hiring means that       has skyrocketed due to           growth
large numbers of migrant           9% by 2016, its lowest level   demand for skilled workers       the jobless rate will see little   earthquakes in Christchurch.     industries by
                                                                                                                                                                       country
workers. The government            in more than a decade.         remains strong. Rebuilding       improvement until late 2012/       Employment growth for 2011
plans to include migrant           A growing number of            efforts following the            early 2013. Sectors such as        was a weak 1.1 per cent.         legislative update

workers in their statistics this   private employers believe      Queensland flooding and a        construction and healthcare                                         Country
year, hence an increase is         the lack of skilled talent     booming mining sector are        are showing the greatest job                                        summaries

likely. The quality of China’s     will limit their growth        contributing to Australia’s      gains, while manufacturing                                          conclusion
higher education system            performance this year, but     current skills shortages.        employment continues
                                                                                                                                                                       about us
remains a challenge as an          are cautiously optimistic      Employment growth was            to drop. The forecast for
estimated 30% of this year’s       in their hiring plans.         reported at 0.9% over 2011,      2012 shows the strongest
6 million college graduates                                       but is forecast to be stronger   hiring plans since the third
have failed to find work.                                         (2%+) through 2012.              quarter of 2008. However,
                                                                                                   Japanese companies are
                                                                                                   also reporting the greatest
                                                                                                   global hiring challenges,
                                                                                                   with 4 out of 5 employers
                                                                                                   finding it difficult to hire
                                                                                                   workers with the right skills.



10
APAC Talent Market Update / Population, Labour & Wage Trends




                                                                                                                                                                                                              Introduction

                                                                                                                                                                                                              APAC Economic
                                                                                                                                                                                                              Outlook
All eyes turn to China and India
                                                                                                                                                                                                              population,
                                                                                                                                                                                                              labour &
                                                                                                                                                                                                              wage trends
                                                                                                                                                                                                               World’s most
                                                                                                                                                                                                               populous region
With many markets                Å India’s economy remains       difficulty filling jobs by country (% of employers)                                                                                           Employment
                                                                                                                                                                                                               holds steady
experiencing labour              driven by the service
                                                                 100%                                                                                                                                          Skills shortages
shortages, the growth            sector, but investments                                                                                                                                           2011
                                                                                                                                                                                                               China and India
and economic expansion           in infrastructure and                                                                                                                                             2010
                                                                 80%                                                                                                                                           Higher salaries
in both China and India          agriculture productivity
are being watched with           systems are expected to                                                                                                                                                      industry outlook
particular interest.             lift the country’s share of     60%
                                                                                                                                                                                                              growth
                                 manufacturing output over                                                                                                                                                    industries by
The way in which both of                                                                                                                                                                                      country
                                 the coming decade.              40%
these economies overcome                                                                                                                                                                                      legislative update
productivity constraints, such   Å China’s five-year plan        20%
                                                                                                                                                                                                              Country
as education and training        includes investments to help                                                                                                                                                 summaries
requirements, remain major       the service sector surpass        0%
                                                                                                                                                                                                              conclusion
issues for the region.           the industry sector as the                Japan           India        Australia       APAC       New Zealand     Singapore      Hong Kong        World          China

                                 largest contributor to GDP                                                                                                                                                   about us
The future labour forces of
                                 by 2015 as it strives to move
the world’s most populous
                                 up the economic value-
countries will likely
                                 chain. The government will
include a more balanced
                                 continue proactive policies
make-up of industry and
                                 to boost employment in
                                        100%
service-based sectors.                                                                                                                                                                            2011
                                 2012; jobs for new college       Sources: IHS Global Insight; Global Employment Trends, ILO, (1/11); ANZ Australian Economic Toolbox (11/10); Manpower Employment
                                                                                                                                                                                                    2010
                                                                  Outlook Survey (6/11); Manpower Talent Shortage Survey (5/11) India Ministry and Labour & Employment (9/10); Japan Statistics Bureau
                                 graduates and encouraging
                                         80%                      (4/11); India needs more reforms to attain balanced growth: economist—China Economic.net (5/11); China may develop service economy
                                                                  in 5 years—People’s Daily (10/10); Talent Shortage Adds to Growth Strains—Financial Times (5/11); Quake Exposes Skill Shortages—stuff.
                                 small business creation          co.nz (3/11); New Zealand Faces Crisis in Skills Shortage—Scoop News (4/11); Australian Mining Sector Struggles with Skills Shortage– The
                                                                  Emigration Group Ltd. (5/11); ManpowerGroup’s Global Hiring Confidence Index for Q1 2012 Reveals Employers in 30 of 41 Countries and
                                 are key60%
                                          priorities.             Territories Surveyed Set to Slow Hiring from Fourth Quarter 2011. (12/11)



                                        40%

11
APAC Talent Market Update / Population, Labour & Wage Trends




                                                                                                                                                                                            Introduction

                                                                                                                                                                                            APAC Economic
                                                                                                                                                                                            Outlook
APAC workers can expect higher salaries
                                                                                                                                                                                            population,
                                                                                                                                                                                            labour &
                                                                                                                                                                                            wage trends
                                                                                                                                                                                             World’s most
                                                                                                                                                                                             populous region
Continued strong demand          Å Dong Tao, an economist        wage growth 2011-2012                                                                                                       Employment
                                                                                                                                                                                             holds steady
for talent drove employee        with Credit Suisse, believes
                                                                 16%                                                                                                                         Skills shortages
turnover rates up to 14.1%       China will reach the                                                                                                                                                     2011Ac
                                                                                                                                                                          2011 Actual        China and India
across APAC in 2011. Wage        “Lewisian turning point” by                                                                                                              2012 Estimate
                                                                                                                                                                                             Higher salaries
growth over the past year        2014, a critical moment in a    12%
was a full 6% within the         developing economy when                                                                                                                                    industry outlook
region—and this will be          its surplus labour supply                                                                                                                                  growth
                                                                  8%
repeated in 2012 with India,     dries up, prompting hikes in                                                                                                                               industries by
                                                                                                                                                                                            country
Indonesia and China leading      wages, prices, and inflation.
the growth trend.                                                 4%
                                                                                                                                                                                            legislative update
                                 Å Given current skill
                                                                                                                                                                                            Country
Å Analysts predict 12-15%        shortages in Singapore,                                                                                                                                    summaries
annual wage growth over          employers are placing            0%
                                                                                                                                                                                            conclusion
the next five years in India.    more emphasis on financial            Australia   China   Hong   India   Indonesia   Japan   Malaysia Philippines Singapore   South   Thailand    APAC
                                                                                           Kong                                                                Korea              average
Engineering, auto, and           rewards. Average salary                                                                                                                                    about us
energy sectors expect to see     increases for existing
the strongest wage hikes.        employees will be around
                                 4% (higher for business-
Å In 2011, 90% of employers
                                 critical skills), and 15–20%
in China increased salaries—
                                 for new hires.
one-fifth did so by more
than 10 per cent. In 2012,       Å Wage growth in the
84% intend to increase           mature Japanese and
salaries—and this time           Australian markets will
one-third will do so by more     lag the region.
than 10 per cent.

12
APAC Talent Market Update / Industry Outlook




                                               Introduction

                                               APAC Economic
                                               Outlook

                                               population,
                                               labour & wage
                                               trends

                                               industry outlook
                                                Biotech,
                                                construction
                                                & energy

                                               growth
                                               industries by
                                               country




Industry Outlook
                                               legislative update

                                               Country
                                               summaries

                                               conclusion

                                               about us




13
APAC Talent Market Update / Industry Outlook




                                                                                                                                                                                     Introduction

                                                                                                                                                                                     APAC Economic
                                                                                                                                                                                     Outlook
Biotech, construction and energy among the growth industries
                                                                                                                                                                                     population,
                                                                                                                                                                                     labour & wage
                                                                                                                                                                                     trends

                                                                                                                                                                                     industry outlook

Å Finance is projected to        Å ICT is growing across            Industry Growth Projections for 2012   Australia       China          India         Japan          New Zealand
                                                                                                                                                                                      Biotech,
                                                                                                                                                                                      construction
grow across the region, with     APAC, but is continuing            Agriculture
                                                                                                                                                                                      & energy
                                                                                                                          X 2.7%         X 3.6%                          X 1.6%
China expected to see more       to boom in India. China is
                                                                    Auto/ Auto Parts Manufacturing                                                                                   growth
than 8% growth. Forecasters      also expected to perform                                                  X 14.3%                       X 20%                                       industries by
                                                                    Biotechnology                                                                                                    country
predict a 6-8% increase in       well in this sector, as newly-                                            X10.3%
regional sector employment       educated IT professionals          Construction                            X 5.1%        X 9.4%                        X 9.0%                       legislative update

by 2030, with the exception      enter the workforce.               Creative Industries / Gaming                                                        Y 8.0%             X         Country
of Australia, which will see                                                                                                                                                         summaries
                                 Å Japan’s nuclear incident         Finance*                                X 5.1%        X 8.2%         X 7.0%         X 1.5%           X 4.1%
significant industry growth                                                                                                                                                          conclusion
                                 is part of an overall gear         Healthcare                              X 4.1%                       X 7.5%           X
without a corresponding
                                 shift for the Energy sector.                                                                                                                        about us
growth in employment.                                               Information/Communication Technology                     X          X 10.3%        X 2.86%
                                 Uninterruptable Power
                                                                    Iron and/or Steel Manufacturing        Y 14.9%        X 8.1%
Å Construction is up in          Supplies is projected to
response to natural disasters    grow 20% throughout the            Manufacturing*                                           Y              X
across the region.               region, as businesses and          Mining                                 X 36.7%                                        X
                                 governments seek to avoid          Online Education
Å China and India are                                                                                      X 10.6%
                                 supply-chain breakdown.
two of the so-called                                                Online Shopping                        X 10.2%
“Pharmerging” markets, or        Å Manufacturing has                Pharmaceuticals*                                      X 20%         X 10-20%                           X
emerging economies where         a mixed outlook. India             Trade (Retail)                          X 2.5%        X 7.0%         X 7.5%         X 2.0%
pharmaceutical giants are        is anticipating its most
                                                                    Transportation & Utilities*             X 4.1%                       X 8.3%
planning expansion.              significant growth to come
                                 in this sector, while China        Uninterruptable Power Supplies                     20% in all Asia. Growth drivers: China, India
                                                                  *Outlined cells indicate sector hubs.
                                 expects to see its overall
                                 manufacturing decrease.


14
APAC Talent Market Update / Growth Industries by Country




                                                           Introduction

                                                           APAC Economic
                                                           Outlook

                                                           population,
                                                           labour & wage
                                                           trends

                                                           industry outlook

                                                           growth
                                                           industries by
                                                           country
                                                            Australia
                                                            China




Growth Industries by Country
                                                            Hong Kong
                                                            India
                                                            Japan
                                                            New Zealand

                                                           legislative update

                                                           Country
                                                           summaries

                                                           conclusion

                                                           about us




15
APAC Talent Market Update / Growth Industries by Country




                                                                                         Introduction

                                                                                         APAC Economic
                                                                                         Outlook
Australia
                                                                                         population,
                                                                                         labour & wage
                                                                                         trends

                                                                                         industry outlook

growth industries                                                                        growth
                                                                                         industries by
40%                                                                                      country
                                                                                          Australia
                                                                                          China

30%                                                                                       Hong Kong
                                                                                          India
                                                                                          Japan

20%                                                                                       New Zealand

                                                                                         legislative update

                                                                                         Country
10%                                                                                      summaries

                                                                                         conclusion

 0%                                                                                      about us
        Diamond and     Motor vehicle    Online        Biotechnology   Online shopping
      gemstone mining   manufacturing   education




16
APAC Talent Market Update / Growth Industries by Country




                                                                                                                                   Introduction

                                                                                                                                   APAC Economic
                                                                                                                                   Outlook
China
                                                                                                                                   population,
                                                                                                                                   labour & wage
                                                                                                                                   trends

                                                                                                                                   industry outlook
Chemicals and                     Energy	                         Motor vehicle                  Manufacturing	
                                                                                                                                   growth
refining                                                          manufacturing                                                    industries by
                                  Huge contracts have been                                       Both light and heavy
                                                                                                                                   country
Refining industries are           generated from the project      China is rapidly developing    manufacturing continue to          Australia
booming, principally along        to build a pipeline network     a reputation for high-tech     boom. Cheap labour, a skilled      China
the eastern seaboard from         across China linking the        industries. The capital,       workforce, and large markets       Hong Kong
where products can either         energy fields in central Asia   Beijing, is usually regarded   have been the principal            India
be shipped within China           with the east coast, the        as the nation’s high-tech      attractions for investments        Japan
to the booming coastal            development of fuel retail      hub, although other regions,   in virtually every sector, from    New Zealand
industrial areas or abroad.       networks, and the emergence     such as Shanghai, are also     paper to chemicals or from
Cheap labour, a skilled                                           heavily involved.                                                legislative update
                                  of a market for liquefied                                      machinery manufacturing
workforce, and large markets      natural gas in China.                                          to semiconductors.                Country
                                                                                                                                   summaries
nearby have been the
principal attractions.                                                                                                             conclusion

                                                                                                                                   about us




17
APAC Talent Market Update / Growth Industries by Country




                                                                                                                               Introduction

                                                                                                                               APAC Economic
                                                                                                                               Outlook

Hong Kong                                                                                                                      population,
                                                                                                                               labour & wage
                                                                                                                               trends

                                                                                                                               industry outlook
Banking and Finance               Logistics and Transport        Producer and                 Tourism
                                                                                                                               growth
                                                                 Professional Services                                         industries by
At the end of 2010, the           Hong Kong has long served                                   Tourism remains one of Hong
                                                                                                                               country
Hong Kong Exchanges               as Asia’s transport and        The presence of producer     Kong’s pillar sectors, boosted    Australia
and Clearing Limited              logistics hub and has the      and professional services    by Beijing’s Individual Visit     China
was the third largest in          world’s third-busiest          has shaped Hong Kong’s       Scheme, which has relaxed         Hong Kong
Asia, after Tokyo Stock           container port.                transformation from a        restrictions on travel to Hong    India
Exchange Group, Inc. and                                         manufacturing center into    Kong by mainlanders since
                                  The Hong Kong International                                                                   Japan
Shanghai Stock Exchange.                                         a regional services hub.     2003; the opening of Hong
                                  Airport ranked the world’s                                                                    New Zealand
Hong Kong is Asia’s leading       fourth-busiest international   Producer services include    Kong Disneyland in 2005;
                                                                                                                               legislative update
financial services center.        passenger airport and had      import and export,           and the opening of Hong
Foreign investment into the       one of the most active air     freight transport, trade     Kong Wetland Park and            Country
                                                                                                                               summaries
sector remains strong, with       cargo operations worldwide.    financing, and insurance     ”Ngong Ping 360” in 2006.
many companies seeing                                            services on goods.                                            conclusion

Hong Kong as a useful launch                                     Professional services                                         about us
pad for Chinese operations.                                      cover legal, accounting,
                                                                 auditing, architecture and
                                                                 engineering activities,
                                                                 scientific research and
                                                                 development, management
                                                                 consultancy activities,
                                                                 information technology
                                                                 related services, etc.




18
APAC Talent Market Update / Growth Industries by Country




                                                                                                                                                                   Introduction

                                                                                                                                                                   APAC Economic
                                                                                                                                                                   Outlook

India                                                                                                                                                              population,
                                                                                                                                                                   labour & wage
                                                                                                                                                                   trends

                                                                                                                                                                   industry outlook
Automotive                        Energy                          Financial services              IT                              Pharma/Biotech/ R&D
                                                                                                                                                                   growth
By 2016 the size of the           India’s emerging green jobs     The Indian banking industry     The Indian market for IT        The Pharmaceuticals industry     industries by
                                                                                                                                                                   country
Indian automobile industry is     sector holds out the promise    is poised to mark USD 28.5      products and services is        is projected to grow at a         Australia
expected to grow by 13%, to       of 10.5 million jobs by 2020    billion by 2025 from the        expected to consolidate its     CAGR of 10 to 20% to reach        China
reach USD 120-159 billion.        as investments in energy        asset size of USD 1.4 billion   growth achieved in 2010         a value between USD 50            Hong Kong
Passenger vehicle sales and       efficiency and renewable        in 2010. Banks are venturing    and increase from USD           and 74 billion by 2020 from       India
production is expected to         energy technologies soar.       into new avenues such as        19.7 billion in 2010 to USD     the 2009 levels of USD 12.6       Japan
grow by 14 to 16% over 2011       The wind sector in India is     wealth management, private      41.2 billion by 2015. India     billion. The Indian diagnostic    New Zealand
to 2021, reaching over 9 to       predicted to be worth           banking, doorstep banking,      is poised to become the         market is projected to grow
                                                                                                                                                                   legislative update
10 million units annually. The    USD 13.1 billion in 2020        credit cards, investment        hub for Engineering Process     at a CAGR of more than 22%
auto component industry has       and could create between        advisory services and           Outsourcing (EPO), with its     between 2010 and 2012. It        Country
                                                                                                                                                                   summaries
shown a consistent growth         150,000 to 250,000 jobs.        various financial products.     market size estimated to        has been estimated that the
rate of about 20% since 2000      The solar industry, predicted   India’s insurance industry      touch USD 30 billion annually   biotech industry is poised to    conclusion

and the rate is expected to       to be worth USD 7.0 billion,    is projected to reach USD       by 2015. The number of tech     target a total turnover of USD   about us
remain consistent until 2015.     could generate between          350-400 billion in terms of     jobs continues to soar, with    8.6 billion by the end of 2015
The Indian auto industry is       117,000 to 235,000 jobs         premium income by 2020.         the three largest IT services   (from USD 2.9 in 2010) which
projected to be short 300,000      by 2020 and small hydro                                        companies planning to add       would be possible if there
                                                                  Healthcare
skilled personnel by 2020         and biomass sectors are                                         thousands of workers. The       will be a growth rate of about
                                                                  The Indian healthcare sector
across functions including        expected to be worth                                            Indian Staffing Federation’s    30% year-on-year.
                                                                  is expected to reach USD 75
R&D and manufacturing.            USD 5.9 billion and USD 7.0                                     eight key members predicted
                                                                  billion in 2012 and USD 238.8                                   India is expected to be a top
According to industry             billion respectively in 2020.                                   that the demand for contract
                                                                  billion by 2020.                                                10 global pharmaceuticals
experts, India is poised to                                                                       staffing by tech providers
                                                                                                                                  market in terms of sales
become the third largest                                                                          will increase by up to 45%
                                                                                                                                  by 2020.
car market by 2020 after the                                                                      between 2012 and 2014.
US and China.

19
APAC Talent Market Update / Growth Industries by Country




                                                                                                                                                                     Introduction

                                                                                                                                                                     APAC Economic
                                                                                                                                                                     Outlook
Japan
                                                                                                                                                                     population,
                                                                                                                                                                     labour & wage
                                                                                                                                                                     trends

                                                                                                                                                                     industry outlook
Manufacturing                                                     Automotive                     Technology                         Tourism	
                                                                                                                                                                     growth
Heavy manufacturing,                                              Analysts say that car sales    Product vendors have               Part of Japan’s growth           industries by
                                  Å	 Hydroelectric and biomass                                                                                                       country
led by the motor vehicles            power will also benefit      momentum at the end            recently been showing              strategy is to increase           Australia
sector, posted better than           from these subsidies.        of 2011 is likely to carry     interest in green IT relating to   tourism from less than            China
expected growth in Q3                                             over into 2012 following a     the healthcare industry. HIT       10 million annual visitors        Hong Kong
2011, reports the Tankan          Å	 The government’s focus       government extension of        software licensing is expected     now to 25 million by 2020         India
economicsurvey. The disaster         on “green innovation”        tax incentives for purchases   to increase 2.86% CAGR             — in part by easing visa          Japan
recovery effort has also             is estimated to create       of fuel-efficient cars and a   through 2016.                      regulations for Chinese           New Zealand
spurred growth in the steel          1.5 million jobs.            new scheme to subsidize the                                       tourists and by increasing
                                                                                                 Rapid growth of smartphone                                          legislative update
manufacturing industry.           Construction                    purchase of clean vehicles.                                       ‘medical tourism. This is
                                                                                                 sales are driving demand for
                                  As projects to rebuild ports,   JAMA forecasts that the                                           expected to boost Japan and      Country
Energy	 Power shortages are                                                                      NAND, image sensors, LCD                                            summaries
                                  repair roads and construct      total market for vehicles in                                      many of its regions, creating
spurring efforts to:                                                                             panels and other components
                                  new housing proceed at          Japan in 2012 will increase                                       more than half a million jobs.   conclusion
Å	 use energy more efficiently                                                                   this year.
                                  breakneck pace, major           19% from 2011.                                                                                     about us
Å	 introduce energy-saving
   technology; and                construction companies
Å	 make greater use of            have been working on plans
   renewables                     to expand the number of
                                  employees they have in
Recent legislation secured        the Tohoku region by 10%
purchase of power generated       to 20%. The impact of
by solar panels, which is         reconstruction spending will
expected to support a rapid       nevertheless be temporary.
expansion of industry-use and
utility-use solar systems.


20
APAC Talent Market Update / Growth Industries by Country




                                                                                                                                                                  Introduction

                                                                                                                                                                  APAC Economic
                                                                                                                                                                  Outlook
New Zealand
                                                                                                                                                                  population,
                                                                                                                                                                  labour & wage
                                                                                                                                                                  trends

                                                                                                                                                                  industry outlook
Biotechnology/                    Light manufacturing           Tourism                         Agriculture
                                                                                                                                                                  growth
agricultural research
                                  Although the overall          The country’s tourism sector    Agriculture will continue to     outlet of global size. Second,   industries by
                                                                                                                                                                  country
New Zealand’s business            manufacturing base remains    accounts for 8-9% of GDP        play a crucial role for the      the expansion into areas
                                                                                                                                                                   Australia
promotion authority               weak, some small New          annually, and is a crucial      economy with the country,        such as wine production has       China
estimates that the country’s      Zealand companies have        foreign-exchange earner.        accounting for one-third of      added high-value products         Hong Kong
biotech industry contributes      been very successful with     New Zealand’s diverse           world trade in dairy products    to New Zealand’s export list.     India
around USD 237-316M per           niche hi-tech products in     landscapes continue to          as it exports 90% of annual      Output from New Zealand’s         Japan
year to the economy primarily     areas such as electronics,    appeal strongly to adventure    dairy production. Two            wine industry has exploded        New Zealand
through agricultural research.    “green” technologies,         and eco-tourists. The global    developments have improved       in 11 years with wine exports
New Zealand’s biotechnology                                                                                                                                       legislative update
                                  aviation and boat building.   success of The Lord of the      New Zealand’s position.          reaching USD 751.2 in
industry specialises in                                         Rings epic and anticipated      First, the creation of the       2010 compared with just          Country
                                                                                                                                                                  summaries
fruit, forestry, forage, and                                    success of the pending          Fonterra cooperative, which      USD 66.3 in 1999. The
large animal research. The                                      Hobbit films, all filmed in     merged the consolidated          potential for organic            conclusion
industry also participates in                                   New Zealand, will continue      dairy-processing industry with   agricultural production and      about us
research of human healthcare                                    to boost the sector. Weighing   the export marketing agency      exports is also high.
technologies such as drug                                       on the industry will be the     has given dairy producers an
discoveries and natural                                         Christchurch earthquakes, as
remedies from the country’s                                     it takes a significant amount
extensive base of exotic                                        of time to lure tourists back
flora and fauna.                                                after major disasters.




21
APAC Talent Market Update / Legislative Update




                                                 Introduction

                                                 APAC Economic
                                                 Outlook

                                                 population,
                                                 labour & wage
                                                 trends

                                                 industry outlook

                                                 growth
                                                 industries by
                                                 country

                                                 legislative update
                                                  Governments take




Legislative Update
                                                  steps to combat
                                                  talent shortages

                                                 Country
                                                 summaries

                                                 conclusion

                                                 about us




22
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012
Asian Talent Market Update 2012

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Asian Talent Market Update 2012

  • 1. APAC Talent Market Update population, employment, wage and labour legislation trends in five key countries in the Asia-Pacific region: Australia, China, India, Japan and New Zealand 2012/2013
  • 2. workforce Trends in APAC Training, Mobility wage growth forecast – 2012 estimate Median Age With a projected region-wide unemployment level of just 7% by 2013, and Flexibility the labour market outlook has shown resilience to global upheaval. APAC’s ongoing prosperity and development will depend somewhat 12% on specific and deliberate responses 45 38 37 36 26 Japan Australia new china india to growing demand for skills, Average age is zealand The median Approximately experience and flexible labour across the second age is above one-third is the region. As with other markets oldest in the world below the age the world. average of 28, of 15 and only around the world, the focus must with declines 5% are over 65. be on equipping the workforce with in the working 10% age population the right skills, and this presents expected significant challenges for developing by 2016. countries with large populations. 4.2 billion people live 8% in the apac region, more than half of the world’s estimated 6.9 billion people. 6% 4% By 2014, it’s The Australian estimated China’s Government is seeking surplus labour supply a 60% increase in will dry up, prompting skilled immigrants hikes in wages, costs under the Regional and inflation. India represents Sponsored Migration the single largest Scheme. Together, India pool of young, 2% and China represent potentially skilled e 40% ea ag labour in the world. ng es or re ia er lia d ia Ko pin es po hk an av of the world’s ys ra on n ina ng ga ilip population. la ia ail ut APAC st pa Ind Ind ma sin Ho Au Ch so Ph th ja
  • 3. APAC Talent Market Update contents 4 Introduction 5 APAC Economic Outlook Growth, recovery and ongoing pressures 7 Population, labour market and wage trends It’s the world’s most populous region Employment holds steady in the face of numerous challenges High employment will compound skills shortages All eyes turn to China and India APAC workers can expect higher salaries 13 industry outlook Biotech, Contruction and Energy among the growth industries 15 Growth industries by country Australia / China / Hong Kong / India / Japan / New Zealand 21 Legislative update Governments take steps to combat talent shortages 23 Country summaries Australia / China / Hong Kong / India / Indonesia / Japan / Malaysia / New Zealand / Singapore 29 conclusion 30 about us 3
  • 4. APAC Talent Market Update / Introduction Introduction APAC Economic Outlook what can we expect from APAC in 2013? population, labour & wage trends industry outlook Emerging markets are playing an increasingly important role in the global economy. growth As the world’s most populous region, Asia-Pacific is central to this shift. industries by country legislative update Economic uncertainty is India may still have one to skilled migration, as on major legislative changes, having its impact here, as it is of the highest official well as supporting growth population and demographic Country summaries everywhere, yet the business unemployment rates in industries and shoring up profiles, as well as our Dhirendra Shantilal and labour market outlook the region, but it also consumer and business insights into the overall conclusion for Asia is now the exception presents one of the biggest confidence. Cash reserves labour market. about us to a seemingly global rule. opportunities for the are relatively high and All eyes are on what happens region, with a young and debt is moderate by world Some industries in the next in Asia. In this report, well-positioned workforce. standards, so the region region’s developed we hope to give you a small China continues to dominate overall occupies an economies (particularly insight into just what that the economic landscape, enviable position to absorb manufacturing and other might look like. yet the impact of growth is further instability. primary industries) are now being felt much further seeing long-term declines. In this report, we examine afield, and investments in Yet, the over-riding theme the trends and indicators that Dhirendra Shantilal education across Asia are is one of growing demand are shaping the economic SVP Kelly Services Asia Pacific reaping rewards. for technical skills, and a and labour market outlook higher proportion of skilled Legislative trends continue for the Asia-Pacific region employees across the Asian to focus on up-skilling labour over the next two to three working population. forces and reducing barriers years. We provide updates 4
  • 5. APAC Talent Market Update / APAC Economic Outlook Introduction APAC Economic Outlook Growth, recovery and ongoing pressures population, labour & wage trends industry outlook growth industries by APAC Economic Outlook country legislative update Country summaries conclusion about us 5
  • 6. APAC Talent Market Update / APAC Economic Outlook Introduction APAC Economic Outlook Growth, recovery and ongoing pressures Growth, recovery and ongoing pressures population, labour & wage trends Despite Northern Asia’s current economic dominance Growth & recovery Pressures industry outlook in APAC, Southern Asia’s Å With a projected region- Å Despite an ageing Å It is estimated that around Å Global financial growth more favourable demographic wide unemployment level working population across half of the region’s workers uncertainty could continue industries by country profile offers a clear long-term of just 7% by 2013, the the region, India presents (50.8 %) are in ‘vulnerable to negatively impact economic opportunity within labour market outlook has the single largest pool employment’. Although recruitment. legislative update the region. shown resilience to global of young, potentially employment statistics have Country Å Japan’s average age is upheaval. Several countries skilled labour in the world. held steady throughout summaries With wage growth and skilled now approaching 45 (the saw their unemployment Approximately one-third of global recession fears, it conclusion labour shortages in some second oldest in the world) peak earlier, and at lower India’s population are below is likely that many workers markets, growth will depend and China’s population about us levels, than expected. the age of 15 and only 5% affected by the crisis have upon flexibility and mobility policies have pushed the are over 65, implying a falling sought alternate forms of of workforces, as well as the median age above the world dependency ratio and a employment, perhaps in the timely action of governments average, with declines in significant increase in the informal economy. and corporates to stem the working age population working population. productivity constraints. expected by 2016. 6
  • 7. APAC Talent Market Update / Population, Labour & Wage Trends Introduction APAC Economic Outlook population, labour & wage trends World’s most populous region Employment holds steady Skills shortages Population, Labour China and India Higher salaries industry outlook & Wage Trends growth industries by country legislative update Country summaries conclusion about us 7
  • 8. APAC Talent Market Update / Population, Labour & Wage Trends Introduction APAC Economic Outlook It’s the world’s most populous region population, labour & wage trends World’s most populous region The APAC region is home the age of 15 and only 5% median age by country: 2011 Employment holds steady to more than 4.2 billion are over 65, implying a 50 Skills shortages people. It accounts for more steady rise in the working- China and India than half of the world’s age population and a falling Higher salaries estimated 6.9 billion people, EMEA dependency ratio (proportion 40 1.4% including 6 of the 10 highest of non-working population to industry outlook population countries: China, EUROPE CENTRAL/EASTERN working population). 30 growth 0.2% India, Indonesia, Pakistan, industries by WESTERN EUROPE In contrast, Japan’s average country Bangladesh, and Japan.0.2% age is now approaching 45 20 legislative update NORDICS China and India together 0.4% (the second oldest in the Country represent almost 40% of the IRELAND/UK world) and China’s policies to summaries 10 world’s population, more than control population growth in 0.7% conclusion the population of the next 20 the 1970s have pushed the MIDDLE EAST & AFRICA largest countries combined. median age above the world 0 about us Japan Australia New Zealand China World India average, with declines in Approximately one-third of the working age population India’s population are below expected by 2016. 8
  • 9. 6% APAC Talent Market Update / Population, Labour & Wage Trends 4% 2% Introduction 0% China Hong Kong Japan South Korea India Indonesia Malaysia Philippines Singapore Thailand New Zealand Australia APAC Economic Outlook Employment holds steady in the face of numerous challenges population, labour & wage trends World’s most populous region Labour markets are clearly unemployment rate: 2009–2013 Employment holds steady on the mend, and in several 10% Skills shortages countries unemployment 2009 China and India has peaked earlier and at 8% 2011 Higher salaries lower levels than predicted. 2013 Unemployment across APAC 6% industry outlook is forecast to continue its 4% growth gradual downward trend, industries by country approaching 7% by 2013. 2% legislative update 0% Asia Pacific Northern Asia Southern Asia Pacific (Oceania) Country summaries 10 conclusion 2009 estimated unemployment rate: 2012 8 about us 2011 10% 2013 6 8% 4 6% 2 4% 0 Asia Pacific Northern Asia Southern Asia Pacific (Oceania) 2% Sources: Global Insight; Forbes.com; Xinhau News Agency; China’s Big Unemployment 0% Problem—Marketplace From American China Hong Kong Japan South Korea India Indonesia Malaysia Philippines Singapore Thailand New Zealand Australia Public Media 9
  • 10. APAC Talent Market Update / Population, Labour & Wage Trends Introduction APAC Economic Outlook High employment will compound skills shortages population, labour & wage trends World’s most populous region Å China created 12 Å India’s unemployment Å In Australia, forward- Å Japan’s disasters caused Å New Zealand’s Employment holds steady million new jobs in 2011, rates remain relatively high looking indicators point to unemployment to spike employment growth will be Skills shortages and maintained its 4.1% due in part to their highly a softening in the labour above 5% in early 2011, significantly limited by skill China and India unemployment rate, yet this restrictive labour laws, market, with unemployment then level off at 4.6 per shortages in the construction Higher salaries rate reflects urban registered but the strong economic inching back up to 5.2% in cent. As the recovery effort and engineering sectors workers only and does outlook is forecast to push early 2012, but expected to accelerates, the lag between where labour demand industry outlook not take into account the unemployment rate below fall to just 4.5% by 2016 as growth and hiring means that has skyrocketed due to growth large numbers of migrant 9% by 2016, its lowest level demand for skilled workers the jobless rate will see little earthquakes in Christchurch. industries by country workers. The government in more than a decade. remains strong. Rebuilding improvement until late 2012/ Employment growth for 2011 plans to include migrant A growing number of efforts following the early 2013. Sectors such as was a weak 1.1 per cent. legislative update workers in their statistics this private employers believe Queensland flooding and a construction and healthcare Country year, hence an increase is the lack of skilled talent booming mining sector are are showing the greatest job summaries likely. The quality of China’s will limit their growth contributing to Australia’s gains, while manufacturing conclusion higher education system performance this year, but current skills shortages. employment continues about us remains a challenge as an are cautiously optimistic Employment growth was to drop. The forecast for estimated 30% of this year’s in their hiring plans. reported at 0.9% over 2011, 2012 shows the strongest 6 million college graduates but is forecast to be stronger hiring plans since the third have failed to find work. (2%+) through 2012. quarter of 2008. However, Japanese companies are also reporting the greatest global hiring challenges, with 4 out of 5 employers finding it difficult to hire workers with the right skills. 10
  • 11. APAC Talent Market Update / Population, Labour & Wage Trends Introduction APAC Economic Outlook All eyes turn to China and India population, labour & wage trends World’s most populous region With many markets Å India’s economy remains difficulty filling jobs by country (% of employers) Employment holds steady experiencing labour driven by the service 100% Skills shortages shortages, the growth sector, but investments 2011 China and India and economic expansion in infrastructure and 2010 80% Higher salaries in both China and India agriculture productivity are being watched with systems are expected to industry outlook particular interest. lift the country’s share of 60% growth manufacturing output over industries by The way in which both of country the coming decade. 40% these economies overcome legislative update productivity constraints, such Å China’s five-year plan 20% Country as education and training includes investments to help summaries requirements, remain major the service sector surpass 0% conclusion issues for the region. the industry sector as the Japan India Australia APAC New Zealand Singapore Hong Kong World China largest contributor to GDP about us The future labour forces of by 2015 as it strives to move the world’s most populous up the economic value- countries will likely chain. The government will include a more balanced continue proactive policies make-up of industry and to boost employment in 100% service-based sectors. 2011 2012; jobs for new college Sources: IHS Global Insight; Global Employment Trends, ILO, (1/11); ANZ Australian Economic Toolbox (11/10); Manpower Employment 2010 Outlook Survey (6/11); Manpower Talent Shortage Survey (5/11) India Ministry and Labour & Employment (9/10); Japan Statistics Bureau graduates and encouraging 80% (4/11); India needs more reforms to attain balanced growth: economist—China Economic.net (5/11); China may develop service economy in 5 years—People’s Daily (10/10); Talent Shortage Adds to Growth Strains—Financial Times (5/11); Quake Exposes Skill Shortages—stuff. small business creation co.nz (3/11); New Zealand Faces Crisis in Skills Shortage—Scoop News (4/11); Australian Mining Sector Struggles with Skills Shortage– The Emigration Group Ltd. (5/11); ManpowerGroup’s Global Hiring Confidence Index for Q1 2012 Reveals Employers in 30 of 41 Countries and are key60% priorities. Territories Surveyed Set to Slow Hiring from Fourth Quarter 2011. (12/11) 40% 11
  • 12. APAC Talent Market Update / Population, Labour & Wage Trends Introduction APAC Economic Outlook APAC workers can expect higher salaries population, labour & wage trends World’s most populous region Continued strong demand Å Dong Tao, an economist wage growth 2011-2012 Employment holds steady for talent drove employee with Credit Suisse, believes 16% Skills shortages turnover rates up to 14.1% China will reach the 2011Ac 2011 Actual China and India across APAC in 2011. Wage “Lewisian turning point” by 2012 Estimate Higher salaries growth over the past year 2014, a critical moment in a 12% was a full 6% within the developing economy when industry outlook region—and this will be its surplus labour supply growth 8% repeated in 2012 with India, dries up, prompting hikes in industries by country Indonesia and China leading wages, prices, and inflation. the growth trend. 4% legislative update Å Given current skill Country Å Analysts predict 12-15% shortages in Singapore, summaries annual wage growth over employers are placing 0% conclusion the next five years in India. more emphasis on financial Australia China Hong India Indonesia Japan Malaysia Philippines Singapore South Thailand APAC Kong Korea average Engineering, auto, and rewards. Average salary about us energy sectors expect to see increases for existing the strongest wage hikes. employees will be around 4% (higher for business- Å In 2011, 90% of employers critical skills), and 15–20% in China increased salaries— for new hires. one-fifth did so by more than 10 per cent. In 2012, Å Wage growth in the 84% intend to increase mature Japanese and salaries—and this time Australian markets will one-third will do so by more lag the region. than 10 per cent. 12
  • 13. APAC Talent Market Update / Industry Outlook Introduction APAC Economic Outlook population, labour & wage trends industry outlook Biotech, construction & energy growth industries by country Industry Outlook legislative update Country summaries conclusion about us 13
  • 14. APAC Talent Market Update / Industry Outlook Introduction APAC Economic Outlook Biotech, construction and energy among the growth industries population, labour & wage trends industry outlook Å Finance is projected to Å ICT is growing across Industry Growth Projections for 2012 Australia China India Japan New Zealand Biotech, construction grow across the region, with APAC, but is continuing Agriculture & energy X 2.7% X 3.6% X 1.6% China expected to see more to boom in India. China is Auto/ Auto Parts Manufacturing growth than 8% growth. Forecasters also expected to perform X 14.3% X 20% industries by Biotechnology country predict a 6-8% increase in well in this sector, as newly- X10.3% regional sector employment educated IT professionals Construction X 5.1% X 9.4% X 9.0% legislative update by 2030, with the exception enter the workforce. Creative Industries / Gaming Y 8.0% X Country of Australia, which will see summaries Å Japan’s nuclear incident Finance* X 5.1% X 8.2% X 7.0% X 1.5% X 4.1% significant industry growth conclusion is part of an overall gear Healthcare X 4.1% X 7.5% X without a corresponding shift for the Energy sector. about us growth in employment. Information/Communication Technology X X 10.3% X 2.86% Uninterruptable Power Iron and/or Steel Manufacturing Y 14.9% X 8.1% Å Construction is up in Supplies is projected to response to natural disasters grow 20% throughout the Manufacturing* Y X across the region. region, as businesses and Mining X 36.7% X governments seek to avoid Online Education Å China and India are X 10.6% supply-chain breakdown. two of the so-called Online Shopping X 10.2% “Pharmerging” markets, or Å Manufacturing has Pharmaceuticals* X 20% X 10-20% X emerging economies where a mixed outlook. India Trade (Retail) X 2.5% X 7.0% X 7.5% X 2.0% pharmaceutical giants are is anticipating its most Transportation & Utilities* X 4.1% X 8.3% planning expansion. significant growth to come in this sector, while China Uninterruptable Power Supplies 20% in all Asia. Growth drivers: China, India *Outlined cells indicate sector hubs. expects to see its overall manufacturing decrease. 14
  • 15. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook population, labour & wage trends industry outlook growth industries by country Australia China Growth Industries by Country Hong Kong India Japan New Zealand legislative update Country summaries conclusion about us 15
  • 16. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook Australia population, labour & wage trends industry outlook growth industries growth industries by 40% country Australia China 30% Hong Kong India Japan 20% New Zealand legislative update Country 10% summaries conclusion 0% about us Diamond and Motor vehicle Online Biotechnology Online shopping gemstone mining manufacturing education 16
  • 17. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook China population, labour & wage trends industry outlook Chemicals and Energy Motor vehicle Manufacturing growth refining manufacturing industries by Huge contracts have been Both light and heavy country Refining industries are generated from the project China is rapidly developing manufacturing continue to Australia booming, principally along to build a pipeline network a reputation for high-tech boom. Cheap labour, a skilled China the eastern seaboard from across China linking the industries. The capital, workforce, and large markets Hong Kong where products can either energy fields in central Asia Beijing, is usually regarded have been the principal India be shipped within China with the east coast, the as the nation’s high-tech attractions for investments Japan to the booming coastal development of fuel retail hub, although other regions, in virtually every sector, from New Zealand industrial areas or abroad. networks, and the emergence such as Shanghai, are also paper to chemicals or from Cheap labour, a skilled heavily involved. legislative update of a market for liquefied machinery manufacturing workforce, and large markets natural gas in China. to semiconductors. Country summaries nearby have been the principal attractions. conclusion about us 17
  • 18. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook Hong Kong population, labour & wage trends industry outlook Banking and Finance Logistics and Transport Producer and Tourism growth Professional Services industries by At the end of 2010, the Hong Kong has long served Tourism remains one of Hong country Hong Kong Exchanges as Asia’s transport and The presence of producer Kong’s pillar sectors, boosted Australia and Clearing Limited logistics hub and has the and professional services by Beijing’s Individual Visit China was the third largest in world’s third-busiest has shaped Hong Kong’s Scheme, which has relaxed Hong Kong Asia, after Tokyo Stock container port. transformation from a restrictions on travel to Hong India Exchange Group, Inc. and manufacturing center into Kong by mainlanders since The Hong Kong International Japan Shanghai Stock Exchange. a regional services hub. 2003; the opening of Hong Airport ranked the world’s New Zealand Hong Kong is Asia’s leading fourth-busiest international Producer services include Kong Disneyland in 2005; legislative update financial services center. passenger airport and had import and export, and the opening of Hong Foreign investment into the one of the most active air freight transport, trade Kong Wetland Park and Country summaries sector remains strong, with cargo operations worldwide. financing, and insurance ”Ngong Ping 360” in 2006. many companies seeing services on goods. conclusion Hong Kong as a useful launch Professional services about us pad for Chinese operations. cover legal, accounting, auditing, architecture and engineering activities, scientific research and development, management consultancy activities, information technology related services, etc. 18
  • 19. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook India population, labour & wage trends industry outlook Automotive Energy Financial services IT Pharma/Biotech/ R&D growth By 2016 the size of the India’s emerging green jobs The Indian banking industry The Indian market for IT The Pharmaceuticals industry industries by country Indian automobile industry is sector holds out the promise is poised to mark USD 28.5 products and services is is projected to grow at a Australia expected to grow by 13%, to of 10.5 million jobs by 2020 billion by 2025 from the expected to consolidate its CAGR of 10 to 20% to reach China reach USD 120-159 billion. as investments in energy asset size of USD 1.4 billion growth achieved in 2010 a value between USD 50 Hong Kong Passenger vehicle sales and efficiency and renewable in 2010. Banks are venturing and increase from USD and 74 billion by 2020 from India production is expected to energy technologies soar. into new avenues such as 19.7 billion in 2010 to USD the 2009 levels of USD 12.6 Japan grow by 14 to 16% over 2011 The wind sector in India is wealth management, private 41.2 billion by 2015. India billion. The Indian diagnostic New Zealand to 2021, reaching over 9 to predicted to be worth banking, doorstep banking, is poised to become the market is projected to grow legislative update 10 million units annually. The USD 13.1 billion in 2020 credit cards, investment hub for Engineering Process at a CAGR of more than 22% auto component industry has and could create between advisory services and Outsourcing (EPO), with its between 2010 and 2012. It Country summaries shown a consistent growth 150,000 to 250,000 jobs. various financial products. market size estimated to has been estimated that the rate of about 20% since 2000 The solar industry, predicted India’s insurance industry touch USD 30 billion annually biotech industry is poised to conclusion and the rate is expected to to be worth USD 7.0 billion, is projected to reach USD by 2015. The number of tech target a total turnover of USD about us remain consistent until 2015. could generate between 350-400 billion in terms of jobs continues to soar, with 8.6 billion by the end of 2015 The Indian auto industry is 117,000 to 235,000 jobs premium income by 2020. the three largest IT services (from USD 2.9 in 2010) which projected to be short 300,000 by 2020 and small hydro companies planning to add would be possible if there Healthcare skilled personnel by 2020 and biomass sectors are thousands of workers. The will be a growth rate of about The Indian healthcare sector across functions including expected to be worth Indian Staffing Federation’s 30% year-on-year. is expected to reach USD 75 R&D and manufacturing. USD 5.9 billion and USD 7.0 eight key members predicted billion in 2012 and USD 238.8 India is expected to be a top According to industry billion respectively in 2020. that the demand for contract billion by 2020. 10 global pharmaceuticals experts, India is poised to staffing by tech providers market in terms of sales become the third largest will increase by up to 45% by 2020. car market by 2020 after the between 2012 and 2014. US and China. 19
  • 20. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook Japan population, labour & wage trends industry outlook Manufacturing Automotive Technology Tourism growth Heavy manufacturing, Analysts say that car sales Product vendors have Part of Japan’s growth industries by Å Hydroelectric and biomass country led by the motor vehicles power will also benefit momentum at the end recently been showing strategy is to increase Australia sector, posted better than from these subsidies. of 2011 is likely to carry interest in green IT relating to tourism from less than China expected growth in Q3 over into 2012 following a the healthcare industry. HIT 10 million annual visitors Hong Kong 2011, reports the Tankan Å The government’s focus government extension of software licensing is expected now to 25 million by 2020 India economicsurvey. The disaster on “green innovation” tax incentives for purchases to increase 2.86% CAGR — in part by easing visa Japan recovery effort has also is estimated to create of fuel-efficient cars and a through 2016. regulations for Chinese New Zealand spurred growth in the steel 1.5 million jobs. new scheme to subsidize the tourists and by increasing Rapid growth of smartphone legislative update manufacturing industry. Construction purchase of clean vehicles. ‘medical tourism. This is sales are driving demand for As projects to rebuild ports, JAMA forecasts that the expected to boost Japan and Country Energy Power shortages are NAND, image sensors, LCD summaries repair roads and construct total market for vehicles in many of its regions, creating spurring efforts to: panels and other components new housing proceed at Japan in 2012 will increase more than half a million jobs. conclusion Å use energy more efficiently this year. breakneck pace, major 19% from 2011. about us Å introduce energy-saving technology; and construction companies Å make greater use of have been working on plans renewables to expand the number of employees they have in Recent legislation secured the Tohoku region by 10% purchase of power generated to 20%. The impact of by solar panels, which is reconstruction spending will expected to support a rapid nevertheless be temporary. expansion of industry-use and utility-use solar systems. 20
  • 21. APAC Talent Market Update / Growth Industries by Country Introduction APAC Economic Outlook New Zealand population, labour & wage trends industry outlook Biotechnology/ Light manufacturing Tourism Agriculture growth agricultural research Although the overall The country’s tourism sector Agriculture will continue to outlet of global size. Second, industries by country New Zealand’s business manufacturing base remains accounts for 8-9% of GDP play a crucial role for the the expansion into areas Australia promotion authority weak, some small New annually, and is a crucial economy with the country, such as wine production has China estimates that the country’s Zealand companies have foreign-exchange earner. accounting for one-third of added high-value products Hong Kong biotech industry contributes been very successful with New Zealand’s diverse world trade in dairy products to New Zealand’s export list. India around USD 237-316M per niche hi-tech products in landscapes continue to as it exports 90% of annual Output from New Zealand’s Japan year to the economy primarily areas such as electronics, appeal strongly to adventure dairy production. Two wine industry has exploded New Zealand through agricultural research. “green” technologies, and eco-tourists. The global developments have improved in 11 years with wine exports New Zealand’s biotechnology legislative update aviation and boat building. success of The Lord of the New Zealand’s position. reaching USD 751.2 in industry specialises in Rings epic and anticipated First, the creation of the 2010 compared with just Country summaries fruit, forestry, forage, and success of the pending Fonterra cooperative, which USD 66.3 in 1999. The large animal research. The Hobbit films, all filmed in merged the consolidated potential for organic conclusion industry also participates in New Zealand, will continue dairy-processing industry with agricultural production and about us research of human healthcare to boost the sector. Weighing the export marketing agency exports is also high. technologies such as drug on the industry will be the has given dairy producers an discoveries and natural Christchurch earthquakes, as remedies from the country’s it takes a significant amount extensive base of exotic of time to lure tourists back flora and fauna. after major disasters. 21
  • 22. APAC Talent Market Update / Legislative Update Introduction APAC Economic Outlook population, labour & wage trends industry outlook growth industries by country legislative update Governments take Legislative Update steps to combat talent shortages Country summaries conclusion about us 22