APAC Employment Monitor Q4 2015 Highlights:
- The number of professionals actively seeking employment was up 42% quarter-on-quarter from 34,843 to 49,701
- Available jobs flat with a change of 0.6% to 15,432
- Japanese market turns around in Q4
- Slowdown in hiring towards end of the quarter
The Asia Pacific Employment Monitor for Q4 shows a flattening of available jobs compared to Q3, with only a 0.6% increase. Year-on-year job growth has been strong, with an increase of 35% from 11,427 to 15,432.
“The last quarter of the year is always a cautious time for employers,” says Richie Holliday, Chief Operations Officer, Morgan McKinley Asia Pacific. “This is the time that companies set their hiring targets for the upcoming year, so the activity is low, but when the new year begins it is often a merry-go-round with a quickly moving market”.
In contrast to available jobs, the number of professionals available in Q4 compared to Q3 increased substantially, rising 42% from 34,844 to 49,701. On a year-on-year basis, this was nearly double the number of professionals on the market at the same time in the previous year. Professionals are preparing for the new year by registering with recruitment companies and updating their CVs. Overall, for the full year, the jobs market has been solid and 2016 is expected to deliver reasonable growth.
“Volatility is the new norm in the APAC region,” says Holliday. “We have spikes of volatility in new jobs coming to the market: due to economic trends; and we also experienced large swings in the number of professionals seeking new roles, especially as younger (Generation Y) professionals are quicker to look for new opportunities”.
The Australian economy has been facing challenges throughout the year: an overheating housing market in Sydney combined with a slump in commodity prices have made for a choppy year. The first half of the year and most of the third quarter had been positive, but the market for jobs has slowed down in Q4 by 28% compared with Q3. Total number of jobs on offer in Q3 was 3,040 and in Q4 2,180.
“The Australian economy has been trying to talk itself into a slowdown all year, without much success,” says Andrew Evans, Chief Operating Officer, Morgan McKinley South Asia. “Finally, in the fourth quarter, it worked. The market cooled down as both employers and professionals seemed to call an early end to 2015”.
A positive trend throughout the year (and the strongest market for jobs in Australia) has been temporary and contract work, which often increases during times of uncertainty. With the current state of the Australian economy, demand for contract positions is expected to remain high in 2016.
Sydney has seen the negative effects of off-shoring for international hires as very few international firms retain their APAC headquarters in Australia, having chosen to move their operations to Asia causing a slowdown in international hiring.
“There are some strong areas of hiring, particularly in anything related to data and analytics. For professionals with the relevant profile, it is fairly easy for them to secure a new role,” says Evans.
It has been a difficult year for the Singapore economy, GDP growth (by Asian standards) has been weak at approximately 2%. As a small country, Singapore’s economy has been tied to that of China. It is likely that the Black Monday crash in Chinese equity markets has had a psychological effect on Singapore – by spooking employers and cutting down hiring with the fear of an economic slowdown. For recruitment, the year was relatively positive up until the third quarter, then weakening clearly towards the end of the year, although quarter-on-quarter the available jobs still showed an overall increase of 18% from 5,840 to 6,880.
“It is very much a case of ‘when China sneezes, Singapore catches a cold’ and this is what we are seeing now,” says Evans. “Although the data shows a decent number, we’ve seen employers putting on the brakes in Q4, particularly during December”.
As in other more developed markets in APAC, Singapore is seeing a trend in offshoring, which is affecting international hiring, particularly investment banking. Private wealth, on the other hand, continues to see strong demand. “There has been a large, recent growth in the wealthy middle-class in China and they need their money to be managed,” says Holliday. “Singapore is seen as a mature, stable and reliable private wealth centre and Chinese demand will continue to be a tailwind for Singapore banks”.
In the last quarter of the year, Japan delivered no surprises. In the overall economy, the Prime Minister Shinzo Abe’s attempts to raise inflation have fallen a little flat. On the jobs market, which had shown weakening in the first three quarters of the year, Q4 proved a positive as jobs actually increased by 27% from 1,848 in Q3 to 2,352 in Q4. There was plenty of activity with professionals, rising 12% from 1224 in Q3 to 1368 in Q4.
“The first three quarters saw a steady slide in candidate numbers,” says Richie Holliday. “However, the results in Q4 showed some positive momentum. Too early to say if it’s a beginning of a trend as Japan retains some traditional culture in the employment sector: whereby people don’t tend to change employers as easily as elsewhere, so movement will inevitably be slower”.
The Black Monday crash in the third quarter of the year continued to impact the mainland market. For international professionals, the market crash has tempered the draw of Shanghai as a destination to relocate to. The trend for companies to move their operations inland to cheaper, more rural and less cosmopolitan areas has further decreased the allure for international managers. For domestic professionals, the market has remained solid throughout the year. Although there has been a slowdown in jobs of 14% quarter-on-quarter (1,164 to 1,000), there are still opportunities in the market, particularly for domestic professionals with language and international experience.
“Despite the hit to investors during the third quarter, the Chinese middle-class remains strong with plenty of buying power,” says Holliday. “The banking sector is also maturing and we’re seeing many opportunities in the financial services sector in Shanghai. As things stand now, the market is moving in the right direction”.
For several years now, China had faced calls from its trading partners for it to devalue the yuan. Eventually China did devalue, which then came as a surprise to the markets. The fall in asset values was further compounded by the fact that Chinese markets are retail investor driven.
“China did what everyone wanted, but they did it on their own terms,” says Holliday. “Now that we’ve had the long awaited yuan devaluation and the multi-year bull rally has taken a beating, any further market drops will unlikely come as a such a big shock”.
Based on the data from Q3 to Q4, the story from Hong Kong was one of stability. There was a 12% decrease in jobs on offer and an increase of 12% for professionals, much in line with what is expected during the end of the year. Out of all the Asian markets, Hong Kong tends to be the most correlated with international markets such as the UK and the USA, as a result of this the volatility in the mainland China market had little impact on Hong Kong.
“Hong Kong is still a pretty good place to be when it comes to the jobs market,” says Holliday. “There is a steady flow of opportunities and there are professionals willing to move. Probably more so than in some other Asian markets, due to the strong influence of international and western businesses who have a long history in the territory”.
Sunak to use budget to expand apprenticeships in England
LONDON (Reuters) – British finance minister Rishi Sunak will announce more funding for apprenticeships in England when he unveils his budget next week, the government said on Friday.
Employers taking part in the Apprenticeship Initiative Scheme will from April 1 receive 3,000 pounds ($4,179) for each apprentice hired, regardless of age – an increase on current grants of between 1,500 and 2,000 pounds depending on age.
The scheme will extended by six months until the end of September, the finance ministry said.
Sunak will also announce an extra 126 million pounds for traineeships for up to 43,000 placements.
Sunak’s March 3 budget will likely include a new round of spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.
Sunak is also expected to announce a “flexi-job” apprenticeship scheme, whereby apprentices can join an agency and work for multiple employers in one sector, the finance ministry said.
“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike,” Sunak said in a statement.
(Reporting by Andy Bruce, editing by David Milliken)
UK seeks G7 consensus on digital competition after Facebook blackout
LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.
Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.
“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.
“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”
Dowden said recent events had strengthened his view that digital markets did not currently function properly.
He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.
“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.
Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.
“Nick strongly agreed with the Secretary of Stateâ€™s (Dowden’s) assertion that the governmentâ€™s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.
Britain will host a meeting of G7 leaders in June.
It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.
The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.
Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.
(Reporting by William James; Editing by Gareth Jones and John Stonestreet)
Britain to offer fast-track visas to bolster fintechs after Brexit
By Huw Jones
LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.
Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.
“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.
Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.
Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.
The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.
“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.
Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.
The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.
It also recommends more flexible listing rules for fintechs to catch up with New York.
“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.
“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”
Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.
“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.
A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.
“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.
The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).
“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.
($1 = 0.7064 pounds)
(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)
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