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
Chart 4 Average Wage in Non-agricultural Activities in Selected Markets 2008
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

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