The Changing Face of the Global Job Market: Working and Unworking Patterns

EXECUTIVE SUMMARY

The Labour Market

• Chart 1 Economically Active Population by Region: % Breakdown 2008

Working Conditions

Employment Trends

• Summary 1 Impact of Changing Work Patterns: Opportunities and Threats

Key Trends in Unemployment

Outlook

DEFINITIONS

Economically Active Population

Employed Population

Employment Rate

Labour Force Participation Rate

Employed Male/female Population

Family Workers

Average Working Week in Non-agricultural Activities

THE LABOUR MARKET

Economically Active Population

The growing workforce

Africa and the Middle East sees strongest growth

• Table 1 Economically Active Population by Region 2003/2008

• Table 2 Economically Active Population as % Total Population by Region 2003-2008

Job creation in India

Shortage of skilled workers in Australia

• Table 3 Economically Active Population in Major Markets 2003/2008

• Table 4 Labour Force Participation Rates in Selected Countries 2003-2008

Age Profile of Work Force

Gen X’ers in their prime

Young people entering workforce later

Baby boomers dominate in North America

• Table 5 Economically Active Population by Country and by Age 2008

WORKING CONDITIONS

Labour Market Regulation

A need for flexibility

UK and Spain loosen regulations

Workplace Discrimination

Prejudice rises in times of recession

Discrimination still rife in China

Working Hours

People generally working longer hours

Gen X’ers seek more family time

Japanese are most industrious

Chinese defy working hours regulations

Implications for marketers

• Table 6 Average Working Week in Manufacturing: Major Markets 2003-2008

Leave Entitlements

Leave entitlement most generous in India and Brazil

Americans lack statutory leave entitlement

Leave-taking highly seasonal in Japan and China

Implications for marketers

• Chart 2 Paid Holiday Allowance in Major Markets 2008

Maternity Benefits

Varying attitudes towards parental leave

No mercy for US mothers

Chinese women face employer discrimination

• Chart 3 Length of Maternity Leave in Selected Countries 2008

Informal Employment

Informal businesses rife in India and Brazil

Illegal work in developed markets

Wage Trends

Wage growth exceeds CPI over the review period

Wages lower in the US, France and Spain

The effects of the recession on wages

• Table 7 Index of Wage Growth Versus CPI in Selected Markets 2003-2008

The Gender Pay Gap

Traditional gender roles still entrenched

Women face higher taxes

Chinese women still earn fraction of male counterparts’ wages

EMPLOYMENT TRENDS

Shift from Industry to Services

Services are the major employers in industrialised markets

Many still reliant on agriculture

Manufacturing is Germany’s mainstay

Government is key employer in many developed markets

India by-passes industrial revolution

Implications for marketers

• Table 8 Employment in Agriculture, Hunting, Forestry and Fishing in Selected Countries 2003/2008

• Table 9 Employment in Manufacturing in Selected Countries 2003/2008

• Table 10 Employment in Construction in Selected Countries 2003/2008

• Table 11 Employment in Community, Education, Health, Social, Personal Services, Public Admin and Defence in Selected Countries 2003/2008

• Table 12 Employment in Finance, Insurance, Real Estate and Business Services in Selected Countries 2003/2008

• Table 13 Employment in Trade; Motor Vehicles, and Personal and Household Goods Repair; Hotels and Restaurants in Selected Countries 2003/2008

Ageing of the Workforce

Over 65s increase share of the workforce

Governments raise retirement age

Boomers expand fastest in North America

Older Gen X’ers drive workforce in China

Impact on marketers

• Table 14 Economically Active Population by Country and by Age: % Growth 2003/2008

Shrinking Pension Pot

Public pensions under pressure

Gen X’ers worry about their future

UK pensions “worst in EU”

Italy spends the most on pensions

Spain shifting towards Anglo-Saxon model

Canada benefits from diversified funding approach

China’s one-child policy is depleting the pensions pot

Implications for marketers

Generational Differences in Work Attitudes

Gen X’ers seek better work-life balance

Gen Y’ers look for freedom and flexibility

The need for dialogue

The unique skills of the young

Rise in Female Employment

Russia has highest share of female employees

Proportion of female workers still low in India

Women make up largest share of part-time workforce

Implications for marketers

• Chart 5 Women’s Share of the Workforce in Selected Countries 2003/2008

• Chart 6 Women’s Share of the Part-Time Workforce in Selected Countries 2003/2008

Shift Towards Part-time Employment

Part-timers make for flexible workplace

Japan has largest part-time workforce

Germany experiences strongest growth

US part-timers concentrated in low-pay jobs

Part-time work still rare in developing markets

• Table 15 Part-Time Employees as a % of the Total Economically Active Population in Selected Markets 2003-2008

The rise of the multi-job

Impact on marketers

Self-employment

Workers prefer to be their own bosses in emerging markets

Self-employment growing in UK

German government encourages entrepreneurism

• Table 16 The Share of Self-Employed People in Selected Markets 2003-2008

Striving for Work-Life Balance

Longer working hours causing stress levels to soar...

...and contributing to family breakdowns

Balancing a career with wellbeing

Japanese focus on lifestyle

Working from Home

Advances in communications facilitate teleworking

Survey reveals massive growth in US telecommuting

• Table 17 Telecommuter Profile in the US 2006/2008

Impact on marketers

Labour Mobility

Internal migration traditionally strong in US

The rural exodus in China

External migration from poor countries

East to West migration in the EU

Indian migrants are widely dispersed

Immigration contributes to economic growth

Government tightening immigration policies in the face of recession

The economic importance of remittances

Indians benefit most from remittance payments

• Chart 7 Leading Recipients of Migrant Remittances Among Developing Countries 2008

Impact on marketers

UNEMPLOYMENT TRENDS

The Good Years: 2003-2008

South Africa suffers highest unemployment

Spain faces worst rate among developed markets

Decline in EU rates during review period

Japan unemployment historically low

• Table 18 Unemployment Rates in Selected Markets 2003-2008

The Crisis: 2009

Financial crisis triggers rise in unemployment

Temporary workers first to be hit

Germany and France protected by stricter labour laws

Uncertainty in emerging markets

Unemployment by Age

The youth unemployment problem

Situation worsens in UK

Sarkozy unveils emergency plan for youths

Emerging markets suffer similar problems

Helping older people back into the workforce

• Table 19 Unemployment by Age in Selected Countries 2008

Government Responses to Unemployment

Welfare benefits more generous in Western Europe

Taking a new approach

Fiscal stimulus packages meet with success

Japan attempts to make temps permanent

Implications for Marketers

Consumers scale back

Cocooning takes a hold

TRENDS IN KEY MARKETS

Brazil

Young and growing workforce

Strict labour laws

Informal business is rife

Rising unemployment

• Table 20 Brazil: Key Data 2008-2010

China

World’s largest workforce

Rural economy still dominates

Rural migrants hit hardest by job losses

• Table 21 China: Key Data 2008-2010

France

Early retirement produces lower labour force rate

Strict labour laws

Service-orientated economy

• Table 22 France: Key Data 2008-2010

Germany

Germans more industrious than EU counterparts

Government measures take effect

• Table 23 Germany: Key Data 2008-2010

Japan

Japan retains strong work ethic

Part-time sector booms with liberalisation of labour laws

Japanese jobless become homeless

• Table 24 Japan: Key Data 2008-2010

UK

Flexible workforce regulations

Structural changes favour service industries

Unemployment soars in 2009

• Table 25 UK: Key Data 2008-2010

US

US characterised by longer working hours

Service-orientated society

Unemployment is accelerating

• Table 26 US: Key Data 2008-2010

OUTLOOK

Unemployment will Get Worse Before it Gets Better

Green shoots on the horizon?

Emerging markets leading recovery

Unemployment lags economic growth

• Table 27 Forecast Unemployment Rates in Selected Markets 2008-2013

Workforce will Continue to Age

Migration will Slow

• Table 28 Forecast Remittance Flows to Developing Countries 2008-2010

Female Workforce Participation Reaches its Peak

• Table 29 Forecast Share of Women in the Economically Active Population 2008/2013

Workers Continue to Strive for Work-Life Balance

Part-time Employment will Continue to Rise

• Table 30 Forecast Share of Part-Time Employment 2008/2013