GLOBILITY® - September 23, 2016 

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EMEA

'Significant' Risk to UK Firms if Passporting Rights Lost After Brexit 
Andrew Tyrie, chairman of the UK Treasury select committee, said the business put at risk if Britain lost its access to the single market – and associated passporting rights for individual companies – is significant. The Conservative MP published data provided by the Financial Conduct Authority showing 5,476 UK-registered firms hold at least one passport to do business in another EU or European Economic Area member state. Just over 8,000 companies authorized in other EU states use these rules to do business in the UK – which could be seen as a sign that the passporting rules are also important to non-UK firms. See more information about passporting rights.

One in 10 Firms Report EU Workers Planning to Quit
EU nationals in 41 per cent of British businesses have expressed concerns about their right to work in the UK after it leaves the EU, according to a new survey from the British Chambers of Commerce (BCC).  Five percent of organizations experienced resignations from EU employees in the month following the referendum on EU membership, while 10 percent reported that some workers had signaled their intention to leave the UK, according to the poll of more than 800 organizations. The BCC said the loss of EU nationals from the workforce would hamper businesses at a time when many are already reporting recruitment difficulties. It called on the government to provide immediate certainty for those affected, and said organizations also required more information on their ability to hire EU nationals before the country leaves the union. Click through for more about the BCC survey.
 


 

 

 

 

EU Boosts African Economies to Counter Migration
The European Commission has developed an ambitious plan to stimulate African economies and to counter migration to Europe. The EU “External Investment Plan” will boost investment and support social and economic infrastructure and SMEs by addressing obstacles to private investment. The investment plan provides, for the first time, a coherent framework to improve investment in Africa and the European neighborhood, in order to promote sustainable investment and tackle some of the root causes of migration; in addition to reducing the number of Africans and Europeans fleeing to the Eurozone. Learn more about the EU’s plan to stem prodigious migration out of Africa.

APAC

Japan Looks to Bring in More Foreign Workers as Population Falls
Immigration has often been proposed as a solution to Japan’s demographic woes in an aging society with a low birthrate. Two aides to Japanese Prime Minister Shinzo Abe said the nation is planning to bring in more overseas workers to bolster the shrinking labor force, and policies under consideration may result in a doubling of foreign workers in Japan. Yasutoshi Nishimura, former vice economy minister, said the government also planned to pass a bill this autumn expanding a foreign “trainee” system under which workers are allowed entry for a limited period, and was considering new visa categories for sectors suffering labor shortages. About 190,000 foreigners are currently working in Japan under this system; the new law would allow participants to stay up to five years, up from the current three years. It also would allow companies to have trainees compose a larger percentage of the workforce and permit them to be employed in a wider range of business sectors. Read more about Japan’s workforce strategies.

China is Desperately Trying to Diffuse its Demographic Time Bomb
China's demographic challenges have become increasingly urgent of late as the country faces its slowest economic growth in a quarter of a century, with a sluggish manufacturing sector hit by a dearth of cheap labor due in part to a shrinking workforce. Last year, China said it would ease family planning restrictions to allow all couples to have two children after decades of a strict one-child policy, a move aimed at relieving demographic strains on the world's second largest economy. Beijing has loosened the rules over the last few years in the face of concerns the strict policy was leading to a shrinking workforce unable to support a fast-growing elderly population. By around the middle of this century, one in every three Chinese is forecast to be over 60. One Chinese city has taken a novel approach: a direct call to action aimed at young government officials to lead the way and have a second child. Access the full article for additional insight.  

Sponsored Content

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AMERICAS  

Brazil’s Tech-sector Bright Spots Beckon as it Begins to Emerge from Long Economic Crisis

Investor confidence and interest in emerging markets like Brazil is on the rise — especially in the wake of the uncertainty and economic fallout following the Brexit referendum vote. The BRICS Post reports that the IMF says “confidence in the Brazilian economy is slowly reawakening” and the organization has forecast positive growth for Brazil during 2017. In spite of the country’s downturn, tech spending in Brazil is rising and entrepreneurship is flourishing. Corporate venture capital growth and a more mature ecosystem is further boosting the prospects for the country’s economic engine to rev back up again, driven by technology sector innovation. Find out more about Brazil’s tech prospects and investor potential.

Gig Economy Growth Approached $800B in 2015

A new report from global workforce advisor Staffing Industry Analysts (SIA), Measuring the Gig Economy: Inside the New Paradigm of Contingent Work, says an estimated 44 million people took on gig work in the US in 2015, with 29% of all American workers performing gig/contingent work last year. That translates into spending $792 billion on gig work in the same time period, says SIA, whose report found that close to 40% of people overall prefer alternatives to a traditional job, with 69% of independent contractors and self-employed workers preferring to engage in work outside of a full-time employment situation. For purposes of the study, the gig economy is defined as any contingent work, such as independent contracting, consulting, freelancing, seasonal work and other temporary work. See more information about the gig economy in the U.S.

General Interest

New Global Survey From GoDaddy Finds Millennials Igniting Entrepreneurial Growth
Fueled by technology that has made entrepreneurship easier than ever, a strong desire for autonomy, and start-up role models such as Facebook's Mark Zuckerberg, the two book-end generations of global workers – Millennials and Baby Boomers – are driving a surge in the number of professionals looking to create their own business or be self-employed, according to a new global survey commissioned by GoDaddy. The research found that 36 percent of people plan to either start a small business or be self-employed within the next 10 years. This is especially true of Millennials, with 50 percent saying they plan to be entrepreneurial during the same time period. In fact, 24 percent of Millennials started their current business while they were still in school. That makes them six times more likely to pursue entrepreneurship as a career than their Baby Boomer counterparts were in the 1960s and 1970s. Click through to the full article for more information.