The Asian Pacific region is thought of as the primary destination for outsourcing and offshoring. In the past, India and China have received most of the attention, due in part to the size of their workforce. However, the top five markets in the APAC region consistently out preform both India and China. These markets present a combination of quality skills, capability, English proficiency and availability plus a more flexible regulatory environment.
Hong Kong holds steady in the second ranking for the APAC region while New Zealand rises out of thirst to claim the top ranking for this region. Singapore slips to third from the top ranking in 2019. This shuffle is due to changes affecting the standings in the availability, productivity and regulatory categories for each of these markets. Worth noting, is the fact that Hong Kong and Singapore are both extremely well positioned for remote workforce engagement. While New Zealand continues to have a more flexible regulatory environment, relative to other markets in this region.
Size of the bubble reflects the Relative Availability of each market, while the color reflects Relative Regulation
The Total Workforce is a combination of all the workers engaged in either Contingent or Permanent work within each country. Below, we explore the top five markets in this region overall, as well as the rankings by category.
Average wage, though a great tool comparison, is predominantly driven by the ratio of highly skilled jobs to lower skilled jobs. Markets with a higher volume of highly skilled jobs will average higher wages than markets with a high volume of low skilled jobs. Therefore, not all markets with lowest wage are the lowest for rates for a given skill.
Manufacturing wages are a leading indicator of rising costs as they typically rise before the wages of professional skills. Manufacturing wages are particularly sensitive to inflation and statutory burdens. Therefore, though the cost of manufacturing skills may be much lower than more highly skilled jobs, they are generally the first to reflect the rising cost of wages in a market. Due to increased digitization and automation, some markets are showing higher wage increases than others. Specifically, those driven by other industry products such as automotive and pharmaceutical.
Employment tax is a basic statutory burden that employers need to add to wages when calculating the cost of skills in a workforce market. It is typically the first metric of consideration beyond the wages themselves. Wages largest component of total labor cost. However, taxes are the best indicator for total cost. They are also more representative of the labor cost per market than insurance as insurance appears more standardized, while taxes are unique to each market.
As workforce experts, ManpowerGroup find work for millions of people around the globe every year, helping hundreds of thousands of companies attract, assess, develop, and retain skilled workers.
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