Mercer’s annual Cost of Living Survey finds African, Asian, and
European cities dominate the list of most expensive locations for
working abroad
In a rapidly changing world, mobility has become a core
component of multinational organizations’ global talent strategy.
To support the growing number of international assignees working in
an increased number of locations, organizations are focusing on
evaluating assignments from a cultural perspective, preparing for
regional and lateral moves, and modifying compensation approaches
to stay competitive. As organizations grapple with these
challenges, they are working hard to accommodate the needs of their
workforce and to support employees’ careers. According to Mercer’s
2017 Global Talent Trends Study, fair and competitive pay as well
as opportunities for promotion are top priorities for employees
this year – not surprising given the current climate of uncertainty
and change.
As a result, multinational organizations are carefully assessing
the cost of expatriate packages for their international assignees.
Mercer’s 23rd annual Cost of Living Survey finds that factors like
instability of housing markets and inflation for goods and services
contribute to the overall cost of doing business in today’s global
environment.
“Globalization of the marketplace is well documented with many
companies operating in multiple locations around the world and
promoting international assignments to enhance the experience of
future managers,” said Ilya Bonic, Senior Partner and President of
Mercer’s Career business. “There are numerous personal and
organizational advantages for sending employees overseas, whether
for long- or short-term assignments, including career development
by obtaining global experience, the creation and transfer of
skills, and the re-allocation of resources.”
Mercer’s 2017 Cost of Living Survey finds Asian and European
cities – particularly Hong Kong (2), Tokyo (3), Zurich (4), and
Singapore (5) – top the list of most expensive cities for
expatriates. The costliest city, driven by cost of goods and
security, is Luanda (1), the capital of Angola. Other cities
appearing in the top 10 of Mercer’s costliest cities for
expatriates are Seoul (6), Geneva (7), Shanghai (8), New York City
(9), and Bern (10). The world’s least expensive cities for
expatriates, according to Mercer’s survey, are Tunis (209), Bishkek
(208), and Skopje (206).
Mercer's authoritative survey is one of the world’s most
comprehensive, and is designed to help multinational companies and
governments determine compensation allowances for their expatriate
employees. New York is used as the base city and all cities are
compared against it. Currency movements are measured against the US
dollar. The survey includes over 400 cities across five continents
and measures the comparative cost of more than 200 items in each
location, including housing, transportation, food, clothing,
household goods, and entertainment.
“While historically mobility, talent management, and rewards
have been managed independently of one another, organizations are
now using a more holistic approach to enhance their mobility
strategies. Compensation is important to be competitive and must be
determined appropriately based on the cost of living, currency, and
location,” said Mr. Bonic.
The Americas
Cities in the United States are the most expensive locations in
the Americas, with New York City (9) ranked as the costliest city,
climbing two spots from last year. San Francisco (22) and Los
Angeles (24) follow, having climbed four and three spots
respectively. Among other major US cities, Chicago (32) is up two
places, Boston (51) is down four places, and Seattle is up seven
places. Portland (115) and Winston Salem (140) remain the least
expensive surveyed cities for expatriates in the US.
Nathalie Constantin-Métral, Principal at Mercer with
responsibility for compiling the survey ranking, said, “Overall, US
cities either remained stable in the ranking or have slightly
increased due to the movement of the US dollar against the majority
of currencies worldwide.”
In South America, Brazilian cities Sao Paulo (27) and Rio de
Janeiro (56) surged 101 and 100 spots, respectively, due to the
strengthening of the Brazilian real against the US dollar. Buenos
Aires, the Argentina capital and financial hub ranked 40 followed
by Santiago (67) and Montevideo, Uruguay (65), which jumped
forty-one and fifty-four places, respectively. Other cities in
South America that rose on the list of costliest cities for
expatriates include Lima (104) and Havana (151). Dropping from 94th
position, San Jose, Costa Rica (110) experienced the largest drop
in the region as the US dollar strengthened against the Costa Rican
colon. Caracas in Venezuela has been excluded from the ranking due
to the complex currency situation. Depending on which exchange rate
is being used, the city would arrive at the top or at the bottom of
the ranking.
“Inflationary concerns continued to cause some South American
cities to rise in the ranking, whereas the weakening of the local
currencies in some of the region’s cities caused them to drop in
the ranking,” said Ms. Constantin-Métral.
Up thirty-five places from last year, Vancouver (107) has
overtaken Toronto (119) to become the most expensive Canadian city
in the ranking, followed by Montreal (129) and Calgary (143).
Ranking 152, Ottawa is the least expensive city in Canada. “The
Canadian dollar has appreciated in value triggering the major jumps
in this year’s ranking,” explained Ms. Constantin-Métral.
Europe, the Middle East, and Africa
Only three European cities remain in the top 10 list of most
expensive cities for expatriates. Zurich (4) is still the most
costly European city on the list, followed by Geneva (7) and Bern
(10). Moscow (14) and St. Petersburg (36) surged fifty-three and
one hundred and sixteen places from last year respectively, due to
the strong appreciation of the ruble against the US dollar and the
cost of goods and services. Meanwhile, London (30), Aberdeen (146)
and Birmingham (147) dropped thirteen, sixty-one and fifty-one
spots respectively as a result of the pound weakening against the
US dollar following the Brexit vote. Copenhagen (28) fell four
places from 24 to 28. Oslo (46) is up thirteen spots from last
year, while Paris fell eighteen places to rank 62.
Other Western European cities dropped in the rankings as well,
mainly due to the weakening of local currencies against the US
dollar. Vienna (78) and Rome (80) fell in the ranking by 24 and 22
spots, respectively. The German cities of Munich (98), Frankfurt
(117), and Berlin (120) dropped significantly as did Dusseldorf
(122) and Hamburg (125).
“Despite moderate price increases in most of the European
cities, European currencies have weakened against the US dollar,
which pushed most Western European cities down in the ranking,”
explained Ms. Constantin-Métral. “Additionally, other factors like
the Eurozone’s economy have impacted these cities.”
As a result of local currencies depreciating against the US
dollar, some cities in Eastern and Central Europe, including Prague
(132) and Budapest (176) fell in the ranking, while Minsk (200) and
Kiev (163) jumped four and thirteen spots, respectively, despite
stable accommodations in these locations.
Ranking 17, Tel Aviv jumped two spots from last year and
continues to be the most expensive city in the Middle East for
expatriates followed by Dubai (20), Abu Dhabi (23), and Riyadh
(52), which have all climbed in this year’s ranking. Jeddah (117),
Muscat (92), and Doha (81) are among the least expensive cities in
the region. Cairo (183) is the least expensive city in the region
plummeting ninety-two spots from last year following a major
devaluation of its local currency.
“Egypt’s decision to allow its currency to float freely in
return for a 12 billion dollar loan over three years to help
strengthen its economy resulted in the massive devaluation of the
Egyptian Pound by more than 100% against the US dollar, pushing
Cairo down the ranking” said Ms. Constantin-Métral.”
Quite a few African cities continue to rank high in this year’s
survey, reflecting high living costs and prices of goods for
expatriate employees. Luanda (1) takes the top spot as the most
expensive city for expatriates across Africa and globally despite
its currency weakening against the US dollar. Luanda is followed by
Victoria (14), Ndjamena (16), and Kinshasa (18). Tunis falls six
spots to rank 209 as the least expensive city in the region and
overall.
Asia Pacific
Five of the top 10 cities in this year’s ranking are in Asia.
Hong Kong (2) is the most expensive city as a result of its
currency pegged to the US dollar, which drove up the cost of
accommodations locally. This global financial center is followed by
Tokyo (3), Singapore (5), Seoul (6), and Shanghai (8).
“The strengthening of the Japanese yen along with the high costs
of expatriate consumer goods and a dynamic housing market pushed
Japanese cities up in the ranking,” said Ms. Constantin-Métral.
“However, the majority of Chinese cities fell in the ranking due to
the weakening of the Chinese yuan against the US dollar.”
Australian cities have all experienced further jumps up the
global ranking since last year due to the strengthening of the
Australian dollar. Sydney (25), Australia’s most expensive city for
expatriates, gained seventeen places in the ranking along with
Melbourne (46) and Perth (50) which went up twenty-five and
nineteen spots, respectively.
India’s most expensive city, Mumbai (57), climbed twenty-five
places in the ranking due to its rapid economic growth, inflation
on the goods and services basket and a stable currency against the
US Dollar. This most populous city in India is followed by New
Delhi (99) and Chennai (135) which rose in the ranking by
thirty-one and twenty-three spots, respectively. Bengaluru (166)
and Kolkata (184), the least expensive Indian cities, climbed in
the ranking as well.
Elsewhere in Asia, Bangkok (67) jumped seven places from last
year. Jakarta (88) and Hanoi (100) also rose in the ranking, up
five and six places, respectively. Karachi (201) and Bishkek (208)
remain the region’s least expensive cities for expatriates.
Mercer produces individual cost of living and rental
accommodation cost reports for each city surveyed. For more
information on city rankings, visit www.mercer.com/col. To purchase
copies of individual city reports, visit
https://mobilityexchange.mercer.com/multinational-approach-cost-of-living-data
or call Mercer Client Services in Warsaw on +48 22 434 5383.
Notes for editors
The figures for Mercer’s cost of living and rental accommodation
costs comparisons are derived from a survey conducted in March
2017. Exchange rates from that time and Mercer’s international
basket of goods and services
have been used as base measurements.
Governments and major companies use data from this survey to
protect the purchasing power of their employees when transferred
abroad; rental accommodation costs data is used to assess local
expatriate housing allowances. The choice of cities surveyed is
based on the demand for data.
About Mercer
Mercer is a global consulting leader in health, wealth and
careers. Mercer helps clients around the world advance the health,
wealth and performance of their most vital asset – their people.
Mercer’s more than 20,000 employees are based in more than 40
countries and the firm operates in over 130 countries. Mercer is a
wholly owned subsidiary of Marsh & McLennan Companies (NYSE:
MMC), a global professional services firm offering clients advice
and solutions in the areas of risk, strategy and people. With
57,000 employees worldwide and annual revenue exceeding $13
billion, Marsh & McLennan Companies is also the parent company
of Marsh, a leader in insurance broking and risk management; Guy
Carpenter, a leader in providing risk and reinsurance intermediary
services; and Oliver Wyman, a leader in management consulting. For
more information, visit www.mercer.com. Follow Mercer on Twitter
@MercerInsights.
Mercer also provides advice and market data on international and
expatriate compensation management, and works with multinational
companies and governments worldwide. It maintains one of the most
comprehensive databases on international assignment policies;
compensation practices; and data on worldwide cost of living,
housing, and hardship allowances. Its annual global mobility
conferences and other events provide companies with the latest
trends and research on mobility issues. Visit
https://mobilityexchange.mercer.com/ for details. Follow Mercer’s
mobility news on Twitter @Mercer_Talent.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170621005743/en/
MercerMiriam Siscovick+ 1 212 345
4760miriam.siscovick@mercer.com
Marsh and McLennan Compa... (NYSE:MMC)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Marsh and McLennan Compa... (NYSE:MMC)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024