The total workforce combines people in the contingent workforce and permanent workforces. The total workforce should not be confused with the total labor force. Where the total workforce includes all of the individuals engaged in work activity within a workforce market, the labor force describes both employed and unemployed members of the population who are of working age and who are reasonably able to be engaged for work.
The Total Workforce Index™ measures the relative ease of sourcing, hiring and retaining a workforce in competing labor markets around the world. The Total Workforce Index™ compiles more than 200 key factors that relate to the Availability, Cost Efficiency, Regulation and Productivity of the workforce of each market.
Setting the Total Workforce Index™ apart from other reports of a similar nature is the use of a proprietary ManpowerGroup Talent Solutions formula. This formula assigns a numerical value to each market, comparing the relative opportunities and potentially negative impacts of entering one labor market versus another.
Just as the Gross Domestic Product (GDP) of a market is used as an economic indicator; the Total Workforce Index™ may be used as an indicator of workforce potential. Total Workforce Index™ rankings provide important perspectives and insights that can influence both short- and long-term strategies involving workforce procurement, including: Remote Work Allocation, Organizational Restructuring, Location Strategy, Direct Sourcing Strategy, Crowdsourced Sourcing Strategy, Capacity Planning, Diversity and Inclusion, Workforce Mix, Cost Savings, Compliance.
In this global Total Workforce Index™ analysis, an equal weight is attributed to each of the four categories: Availability, Cost Efficiency, Regulation and Productivity. A higher Total Workforce Index™ ranking indicates that a market is likely to support higher volumes of hiring based on workforce quality and productivity.
Now in its tenth year, we routinely refine the Total Workforce Index™ to adapt to our clients' changing needs.
In recent years, the Index has included a focus on the impacts of COVID-19. Many long-term effects, such as the need for a remote-ready workforce, are now built into the TWI. Other areas, such as the importance of border access related to COVID lockdowns, have now been removed.
As populations age, the availability of the working-age population becomes increasingly important. Last year, we increased the weighting of Gen Z and millennial populations to account for this. This year's Index adds to previous population-related changes by prioritizing the availability of highly skilled workers and age dependency – specifically, the ratio of working-age people to retirement-age individuals.
Cost of living and wage inflation rates were new factors introduced in 2022. In 2023, the weighting on cost of living was maintained while inflation was increased. This change ensures the Index better accounts for extremely volatile inflation environments like those in Argentina and Venezuela.
As always, we have continued to refine our model to account for geopolitical and economic change. The multi-year impact of Russia’s war with Ukraine has drastically influenced the global labor market, essentially cutting off access to a large, highly skilled workforce. Hamas’ attack on Israel and the subsequent war could have similar workforce implications, given the region’s sizable contribution to workforce planning. The full impact is not yet fully understood, but it will likely affect TWI findings in years to come.
This website and the Total Workforce Index™ report are intended to provide an overview of general business information relative to global employment conditions and considerations. It should not be interpreted as legal advice. Please consult with legal counsel to ensure that you are in compliance with all applicable laws.