Hong Kong is the most expensive city in the world for expats, at a time when significantly fewer workers are looking for placements overseas, according to new research published this week.
According to analysis firm Mercer, Hong Kong has the highest cost of living, with Shanghai and Beijing in seventh and ninth place respectively on a ranking of 209 cities dominated by the Asia-Pacific region.
Yvonne Traber, global mobility product solutions leader at Mercer, said “stronger Chinese monetary regulation, a flourishing economy and a push to have the Chinese Yuan as an international currency pushed Chinese cities up in the ranking.”
Hong Kong has some of the most expensive property rental costs in the world, with the average price for a three-bedroom apartment at more than 13,000 U.S. dollars per month.
While foreign workers continue to embrace the chance to work overseas, a separate report released on Monday by Boston Consulting Group (BCG) showed a “decline in desire to work abroad,” particularly from Chinese professionals.
The BCG study of more than 366,000 people from 197 countries found that the Chinese workforce was “significantly less inclined to consider a foreign work assignment,” pointing to the growing number of opportunities available domestically.
For Chinese workers who would be open to going overseas, BCG found that their top priority would be “career development,” followed by “learning and training opportunities.” This was in contrast to professionals from the UK, France, Italy and Spain, who prioritize a “good work-life balance” over anything else.
Factors in the West like Brexit have put many expats off from working in the UK. When BCG conducted its survey in 2014, the UK was the top destination for Chinese workers looking for a placement overseas – this year it is only the seventh most popular destination, behind countries like Australia, the U.S. and Japan.
Four years ago, the survey found that 64 percent of workers questioned would be willing to move overseas for work. That has now dropped to 57 percent, with less than 50 percent of Chinese workers willing to consider a foreign placement.
In comparison, 90 percent of respondents from India agreed that they would consider working overseas if the opportunity arose.
While “tightening trade and immigration policies” are having an impact on the U.S.’ reputation as a destination for expats, BCG’s study found that it is still the most popular country, with 34 percent of those surveyed willing to work there.
Going back to Mercer’s study of cities with the highest cost of living for foreign workers, U.S. cities rank fairly low on the list, with New York the highest American city in 13th place, and tech hub San Francisco in 28th.
Nicholas Moore
