Global Hiring Trends and the Impact of Coronavirus
Erez Greenberg| Jun 30, 2020
Papaya Global’s vast collection of global payroll data allows us to gather insights on important business trends around the world such as when businesses are hiring, when they’re terminating, and identify these trends by country.
Over the past few months Coronavirus has taken a toll on the global market, and in order to fully understand the impact it’s had on global hiring and termination, we drilled down into the data using the Papaya platform reporting suite. We looked at the pre-Covid months (November 2019-February 2020), the peak Covid months (March 2020-April 2020), and the Covid “recovery” months (May 2020-June 2020) to identify useful patterns.
|Time Period||Change in Hiring (Compared to previous 3 months)||Change in Termination (Compared to previous 3 months)|
November 2019-February 2020
|4% Increase||3% Decrease|
March 2020-April 2020
|7.5% Decrease||38.5% Increase|
May 2020- June 2020
|50% Increase||41% Decrease|
*The table above shows the aggregated increase and decrease in hiring and termination from all of Papayas data base over the past 8 months.
The data gathered validates the overall hiring and termination trends we expected, from pre, peak, and recovery Covid 19 times. It shows a hiring increase and a termination decrease in the months before Covid 19 became a global pandemic; a drastic decrease in hiring and an increase in termination during the months with the most serious spike in Covid 19 cases and governmental mandates; followed by a upsurge in hiring and a reduction in termination following the peak months.
Global Hiring Trends Post-Covid19
Countries with the Largest Increase in Hiring
Varying reasons for the continuation or future continuation for hiring in the above countries:
- Businesses shifting away from China – US companies have been leaving China for some time now due to the trade war, and the trend is continuing with the outbreak of the Coronavirus. These factors are causing US based companies to shift their focus to other Asian Countries, increasing the hiring in India, Singapore, Japan and South Korea.
- The reopening of borders:
- EU countries are beginning to open their borders.
- Singapore and China have created a “fast lane” to facilitate essential business and official travel between the two countries.
- Countries with better government mandates, bailouts, and wage guarantees that have been enacted during Covid19 in order to assist employers in preserving their employees. For example:
- Canada’s Emergency Wage Subsidy to subsidize employee wages by up to 75%, allows companies to re-hire otherwise terminated employees as a result of COVID-19, and cover a 100% refund of some employer payroll taxes.
- In the Netherlands an employer was able to receive up to 90% compensation from social security (UVW) or a maximum of 9,538 EUR (gross) per month for the employee’s monthly wages from March 2020-May 2020. In addition, the employer’s cost was fixed at 30%. Employees could not be terminated during the time employers received subsidy.
- Singapore has established the Job Security Schemethat will grant support to qualified groups by covering 25% – 75% of gross monthly wages per Singapore Citizen/Permanent Resident employee.
- Countries with specific business advantages – language, time zones, educated workforces, and specialized industries.
- Less employment complexities – Fewer labor laws and simpler tax regulations.
Countries with the Largest Decrease in Hiring
Newcomer Countries on the Rise
Apart from being less effected by the Corona virus than many other European countries, these countries are becoming important hiring hubs due to their highly educated workforce, developed infrastructure, central time zone, and overall low employee costs.
Global Hiring with Papaya Global
Papaya offers a total workforce management solution supporting all types of global workers (payroll, EoR, and contractors) in over 100 countries. The automated, cloud-based SaaS platform provides an end-to-end solution, from on-boarding to on-going management to cross-border payments.
The automated platform ensures payroll compliance, provides benefit management, and ensure data privacy in compliance with GDPR. Papaya’s knowledge center provides updated information on salary benchmarks, mandatory benefits, tax rates, and more – everything you need to know before hiring overseas.
Papaya Global’s powerful new reporting suite gives you complete control of your global workforce. Our reports are state-of-the-art and specially tailored for our clients.
Meet with our experts for a live demo of our platform and all of its cutting-edge capabilities and make your hiring and expansion easier than ever.