Consea Group, one of the leading executive search and HR consulting firms in the world, is proud to announce the opening of its new office in Singapore in June 2023. With the opening of the new office, Consea Group aims to expand its reach in the Asia-Pacific region and better serve its clients. The new office in Singapore will be the seventh branch at international level, joining its offices in Shanghai, Krakow, Sao Paolo, Mexico City, Chicago, and New York. Consea Group is dedicated at providing its clients with the highest quality executive search services, and the new office in Singapore will be no exception.
With almost 20 years of experience in Asia thanks to the Shanghai office, Consea decided to follow the trend of senior managers, executives, entrepreneurs, and investors to conduct business in the Asian countries to consolidate and diversify its presence in the region, while maintaining a strong interested and attention to China. Due to her strong experience and knowledge of the Asian Market, the Consea’ Singapore office, already operational for a few weeks, will be managed by Gaia Ceccatelli, in Consea since 2019, as General Manager APAC.
With an overall bullish hiring market in Singapore, there was a strong appetite to hire from almost every sector for a wide range of roles, with the highest demand being for executive and mid-management (5-12 years of experience) level professionals. A notable change was the increase of regional roles based in Singapore; with the country gradually becoming the APAC hub of choice for more multinational companies.
This competitive recruitment landscape came as the economy fully opened up post-COVID-19, and companies would like to meet their growing demand to hire. Despite candidates showing greater willingness to move roles, it remained a candidate-short (and driven) market for the last months.
The HR market is still a big challenge!
Consea Group’s CEO, Chiara Altomonte, made the following statement about the company’s expansion into Singapore: “We are very excited to be expanding our presence in the Asia-Pacific region and to be able to offer our clients the same high-quality executive search services that we are known for. We are confident that the opening of our Singapore office will help us better serve our clients and help them finding the best candidates to fulfil their open positions.”
We have many initiatives in the pipeline, follow us on LinkedIn so you don’t miss all the updates and projects we are developing!
Authors:
Chiara Altomonte – General Manager and Head of the Fashion & Retail division
The 25th Pambianco Fashion Summit titled “The Fashion Industry and the Management of Uncertainty,” was held on Wednesday, November 11th, 2020. The event highlighted the impact the pandemic has had on global markets and the actions taken by companies to address this crisis.
Resulting from this year’s turbulent events, the luxury fashion sector was severely damaged by the global closure of shops, as well as by the lack of tourists – something still having an impact in European markets. The key component for facing adversity, common to all the interlocutors present at the summit, ultimately relies on “resilience.” Thanks to the willpower and team spirit, the featured companies present at the event expressed gratitude and satisfaction for the results obtained.
A recovery was highlighted in the third quarter, especially in the Asian market driven by China, where domestic consumers returned to travel, giving advantage to the areas where tax-free poles have been created (Hainan) and ultimately enabling those to benefit from the new concessions introduced by the government.
From the analysis conducted by PwC on Millennials and Generation Z, it has been discovered that in the new normal, consumers will have greater attention to the price of products and will seek a safe and accessible customer experience. Engagement will be shifted towards digital and companies will have to place more and more attention to issues relating to sustainability.
If the number of consumers who moved their shopping channel online during Covid-19 has increased in all markets, and that number will no longer return to pre-pandemic levels, it is also true that the physical brick & mortar store will continue to represent an important space for the consumer; consumers want to “touch and feel” and will continue to seek that. Omnichannel is now essential, and it has to allow a true integration between physical and digital, giving rise to a “phy-gital” shopping experience.
Another interesting find, provided by Silvio Campara, CEO of Golden Goose, underlined how the crisis has definitively changed the way of approaching the consumer, who can no longer be defined by the 4 P model (Place / Product / Price / Promotion) but from a new model based on 4 Cs (Consumer / Community / Conversations / Consideration) that all revolve around People.
A key role in the world of fashion is certainly played by Italy, where 41% of European fashion production takes place. Furthermore, 60% of the high-end product is produced in Italy (data: National Chamber of Fashion). Italian textiles and clothing allocate about 66% of their production to exports (data: Confindustria Moda). Fashion is, therefore, the second most important industry at a national level and it is extremely important to protect the entire chain that goes from large brands to SMEs. In addition to the issues of sustainability and digitalization – in order to overcome the crisis, it will be crucial also to focus on competencies and on the training of people (both for technical roles and within the retail locations): this strategy will protect the fashion chain and create added value.
Even if the numbers are still not trending positive, signs of cautious optimism came from the summit; once the health crisis is resolved, consumers will return to travel and choose European markets for their purchases because they are more advantageous to them. Ultimately, a new approach to the global consumer and an organic integration between online and offline will allow for greater engagement and the possibility of a complete customer experience.
Interested in the summit? Find out more here!
Nowadays, investing in young people should not just be a slogan, but the best strategy companies should adopt to grow, innovate and gain competitive advantages over their competitors. Regarding Consea Head Hunting's experience in managing recruitment processes with the younger generation, a certain rigidity shown by candidates is emerging, expressed especially in terms of demands related to hybrid working opportunities, career plans and business ethics. As a result, there is often a significant lack of motivation and engagement when faced with an offer that fails to detail or satisfy these aspects.
WHAT CAN ORGANIZATIONS DO?
To make themselves more attractive to the younger generation, companies should first of all understand what is actually being sought, and in this regard, there is an increasing emergence of the importance for young people being able to identify with company values in terms of sustainability (environmental, valuing diversity, inclusive approach and equity), ethics, training (with an important focus on soft skills, skills that can become an asset to the individual and not just a direct benefit to the company as is the case with technical skills), policies for investing in resources and sharing the expected goals and their consequent development plans envisaged not only in terms of vertical growth, but also about involvement in initiatives, task forces and projects aimed at the well-being of the internal community. Equally important seems to be the attention paid to the work-life balance, flexibility and wellbeing policies within the organization.
In terms of attraction and retention, an important role is played by the organization's external communication as the new generations put great importance to the company's website and its presence on social networks as well as, in general, its web reputation.
COMPANY AS COMMUNITY
This focus is symptomatic of the fact that nowadays the company is no longer considered a mere workplace, on the contrary, it increasingly constitutes a real community for new generations, who can appreciate opportunities of involvement that can allow them to come closer and share experiences with other employees belonging not only to different areas or functions, but also to different generations; of this a significant example could be reverse mentoring.
BETRAYAL OR OPENNESS TO CHANGE?
In conclusion, we can highlight one more peculiarity: increasingly, new generations are experiencing change as a development opportunity to enrich their skills and, therefore, the decision to leave one company for another should not be experienced as a betrayal; on the contrary, it would be much more functional for the organization to maintain relations with the resource who has changed reality by opting for a new context. This attitude could generate future opportunities for a new encounter and possible opportunities to reintegrate the resource, enriched by the new experiences gained in the meantime.
Authors:
Sara Ruffinatti – Senior Consultant & Executive Coach
Marzia Pio – Junior Consultant at Consea Executive Search
Navigating the Impact of US Tariffs: Industry-Specific Challenges and Strategic Responses
Updates as of April 29th:
President Donald Trump has signed an executive order and a proclamation to ease auto tariffs. While the 25% tariff on imported cars remains unchanged, a new 25% tariff on auto parts will be implemented starting this weekend 3.
The new fine print includes provisions for reimbursements to domestic car producers importing car parts. These reimbursements will be capped at 3.75% of the value of domestically produced cars for the first year, decreasing to 2.5% in the second year 3. Additionally, cars containing 85% parts that comply with the United States-Mexico-Canada Agreement (USMCA) and produced domestically will effectively avoid tariffs.
In the meantime, on the global scale:
China Eases Tariffs on Select US Goods: China has recently waived tariffs on US ethane imports, allowing Beijing to maintain a firm public stance while offering some relief.
US-China Tariff Negotiations: President Trump has stated that the US will not drop tariffs on China without something substantial in return. He emphasized the need for China to be more open to US businesses and products.
Tariff Talks with India: US Treasury Secretary Scott Bessent mentioned that India is likely to finalize a bilateral trade agreement with the US to avert reciprocal tariffs.
Economic Impact: The ongoing tariff policies have led to a turbulent economy, with China's manufacturing activity falling to a near two-year low.
Recent Developments: Global Reactions and Market Impacts
Since the announcement, several key developments have emerged:
● China's Retaliation: China has increased reciprocal tariffs on US goods to 84%, significantly impacting US exports to China.
● European Union's Response: The EU imposed 25% tariffs on a range of US imports as a countermeasure.
● Tariff Adjustments: President Trump authorized a 90-day pause on reciprocal tariffs for most countries, except China, where the tariff rate increased to 125%.
● Stock Market Surge: The US stock market surged, gaining $4 trillion in value after the announcement of a 90-day pause on tariffs for over 75 countries.
Introduction
In April 2025, President Trump announced a series of new tariffs aimed at addressing trade imbalances and protecting American industries. These tariffs, which vary by industry, have significant implications across sectors. This article not only explores the specific impacts on the automotive, machinery, food and beverage, medical devices, and pharmaceutical industries but also highlights the strategic role that Consea's executive search and human capital consulting services can play in helping companies navigate these turbulent times.
Automotive Industry: A 25% Tariff Shock
The automotive sector now faces a 25% tariff on imports, prompting immediate disruptions—Stellantis, for instance, has already announced temporary layoffs in the US and production suspensions in Mexico and Canada. These underline challenges the need for resilient leadership.
Machinery Industry: Rising Costs and Supply Chain Disruptions
Tariffs on steel and aluminum have driven up costs for the machinery sector, impacting production schedules for giants like Caterpillar and John Deere. Supply chain delays are becoming a norm, threatening profitability and operational efficiency.
Food and Beverage Industry: Tariffs on Italian Imports
With a 20% tariff now imposed on imports, the food and beverage industry faces steep cost pressures—illustrated by coffee brands like Lavazza planning to shift to 100% US production. Such policy changes force brands to re-evaluate their sourcing and supply chain strategies.
Is Made in Italy in Danger?
Our expertise helps companies balance tradition with innovation, ensuring that cherished brands continue to thrive even in a challenging regulatory landscape.
Medical Devices: Global Supply Chain Challenges
Medical device manufacturers are grappling with tariff-induced cost increases on globally sourced components. These challenges can delay production and reduce the availability of critical medical technologies.
Pharmaceutical Industry: An Exemption Amidst Uncertainty
While the pharmaceutical industry currently enjoys a tariff exemption, the potential for future policy changes requires vigilance.
For These Issues, and Others, Consea is Qualified to Help
Consea leverages decades of global expertise and a tailored, relationship-driven approach to help companies navigate the disruptive effects of new tariffs. By identifying and recruiting agile leaders equipped to manage supply chain challenges and operational shifts, we enable businesses to adjust quickly to economic pressures. Our integrated executive search and human capital consulting solutions offer strategic guidance that not only fills critical leadership gaps but also supports long-term growth and resilience in a volatile market.
A Confident Partner in the Face of Uncertainty
The new US tariffs present significant challenges across multiple industries, but with strategic planning and the right executive talent, companies can navigate these obstacles and continue to thrive. Consea's expertise in both executive search and human capital consulting is critical in supporting businesses through these transitions by providing leaders who drive innovative, agile responses.
Take the next step : Contact Consea today for a complimentary, industry-specific tariff impact consultation to learn how we can tailor our executive search and consulting solutions to safeguard your business and drive success in this volatile market.
Schedule Your Free Tariff Impact Consultation
Upskilling & Reskilling: The Future of Work, Talent Shortage, and Human Capacity Within Organizations
According to several market studies, the talent shortage has reached its highest level in Mexico.
This is due to a lack of specific skills (a mix of technical capabilities and human factors) required from companies, especially in particular industries. Combined with the accelerated technological change management process e digital transformation we are living in, the scarcity of talent availability is further complicating the recruiting needs of many hiring managers.
In 2022, in Mexico, and in some LATAM countries, more than 60% of employers reported difficulties in finding the right match – the highest number in the last 10 years.
Today, it became essential to many organizations, to improve workforce skills as well as train and "recycle” professional talents in order to fill their internal positions and stay competitive. These two techniques are called Upskilling & Reskilling.
Upskilling is the process of learning new skills or of teaching workers new skills.
Reskilling is the process of learning new skills so you can do a different job, or of training people to do a different job.
These tools became pivotal to address the Human Capital needs within the work environment, as well as to promote career pathing, succession planning, and retention programs, for most companies.
Within the markets Consea operates with, we identified few sectors that currently are presenting the greatest demand for high-skilled profiles in Mexico: supply chain and manufacturing, finance and administrative positions, sales and marketing and engineering.
To support your Human Capital needs, Consea Groupcan design a consulting plan tailored for your company, defining together an effective TALENT SEARCH and COMPANY CULTURE FITTING strategy.
Follow Consea Group on LinkedIn to stay up to date on the latest trends in the labor market and to find out how to create and maintain a positive working environment in your organization.
Authors
Enrique Pedroza - Business Development Manager in Consea Group, Mexico
Read the article in Spanish:
Upskilling & Reskilling: El futuro del trabajo, la escasez de talento y las capacidades humanas dentro de las organizaciones
Acorde a diferentes estudios de mercado, la escasez de talento ha llegado a su nivel más alto en México.
Esto se debe a la falta de habilidades específicas (una combinación de capacidades técnicas y factores humanos) requeridas por las empresas, especialmente en industrias particulares.
Combinado con el acelerado proceso de gestión del cambio tecnológico en el que vivimos y transformación digital, la escasez de talento complica aún más las necesidades de muchos Gerentes de contratación.
En 2022, en México y en algunos países de LATAM, más del 60% de los empleadores reportaron dificultades para encontrar el personal adecuado, el número más alto en los últimos 10 años.
Hoy en día, se vuelve esencial para las organizaciones mejorar las habilidades de la fuerza laboral, así como capacitar y "reciclar" talento profesional para ocupar un nuevo puesto dentro de la compañía y mantenerse competitivos. Estas dos técnicas se denominan Upskilling & Reskilling.
Upskilling busca enseñar nuevas habilidades a un trabajador para optimizar su desempeño, mientras que Reskilling también conocido como reciclaje profesional, busca capacitar a un empleado para adaptarlo a un nuevo puesto dentro de la empresa.
Estas herramientas se vuelven fundamentales para abordar las necesidades de capital humano dentro del entorno laboral, así como para promover la orientación profesional, la planificación de la sucesión y los programas de retención para la mayoría de las empresas.
Dentro de los mercados con los que opera Consea Group, identificamos algunos sectores que actualmente presentan la mayor demanda de perfiles altamente calificados en México, tales como cadena de suministro, manufactura, finanzas, administrativos, ventas, mercadeo e ingenierías.
Para apoyar sus necesidades de Capital Humano, Consea Group puede diseñar un plan de consultoría a la medida de su empresa, definiendo en conjunto una estrategia efectiva de BÚSQUEDA DE TALENTO que AJUSTE A LA CULTURA DE LA EMPRESA.
Sigue a Consea Group en Linkedin para estar al día de las últimas tendencias en el mercado laboral y saber cómo crear y mantener un clima laboral positivo en tu organización.
35 years in Consea – Interview with Barbara Braida
You’ve been at Consea for many years, is there a memory or special moment that has stayed with you?
Today, there’s greater focus on personal well-being, flexibility, and quality of life. Twenty-five years ago, these topics were not central to company policies, especially in smaller organizations. When I found myself needing a different balance between my personal life and work, I was given that opportunity, and it allowed me to make important choices with peace of mind.
Over the years, how have you seen Consea evolve, and what has that change meant for you?
I’ve had the opportunity to witness all of Consea’s major milestones: its expansion first across Italy and then internationally, the diversification of services and target markets, and the arrival of the new generation of the Altomonte family at the Group’s helm. Despite these changes, the company’s founding values have remained unchanged. This journey has also shaped my own professional path, particularly as I’ve focused on the U.S. market for many years.
What do you enjoy most about your job?
The variety. While the selection process follows a similar structure, every project is unique—industry, company culture, and candidate requirements always vary.
What skill or personal quality have you developed the most thanks to your experience at Consea?
Working in an ever-changing environment and across diverse markets has helped me build strong adaptability and enhanced my interpersonal and cross-cultural communication skills.
What has been the biggest challenge in your career, and how did you overcome it?
Becoming a recruiter for the U.S. market. It was a completely new environment for me, but I had the opportunity to build and refine the necessary skills directly on the field. Every step of the journey has been a chance to grow, and constant exposure to new situations has helped me develop new abilities.
How would you describe Consea to someone who doesn’t know the company?
Consea is a company that blends professionalism and strategic vision with a strong human approach. Over time, it has grown and adapted to market changes without ever losing sight on its core values. It’s a dynamic, international organization that supports companies in identifying top talent. For me, Consea means growth, stimulating challenges, and ongoing development opportunities.
How do you envision Consea’s future?
Bright. I believe Consea will continue to monitor market trends and socioeconomic developments closely, respond quickly to new challenges, and explore emerging technologies to stay aligned with client needs.
If you had to choose one adjective to describe yourself, what would it be?
Determined.
What’s your favorite activity outside of work, and how does it help you recharge?
I enjoy reading and watching crime or sci-fi series. It allows me to fully disconnect from the everyday routine and engage my mind in a different, stimulating way.
If you could give one piece of advice to your younger self, what would it be?
To embrace change with optimism and to not fear uncertainty, because every challenge is an opportunity for growth.
Singapore’s Job Market: present challenges but positive outlook
Singapore continues to be a major regional hub for global businesses, with over 40,000 international firms, including 7,500+ multinational corporations (MNCs). Its strategic location, favorable business environment, and government efforts to attract global talent and innovation make it an attractive destination for businesses expanding into Asia’s fastest-growing markets.
Economic Overview: Growth and Challenges
In 2024, Singapore’s economy grew by 4.4%, driven primarily by the wholesale trade, finance, and insurance sectors. However, sectors like retail trade and food services contracted, partly due to shifts in consumer behavior, including more locals opting to travel abroad. The GDP growth forecast for 2025 is expected at 1.0% to 3.0%, with slower employment growth anticipated due to global uncertainties.
Job Market Trends
While overall job growth has been moderate, there is a notable increase in contract and replacement roles, especially in sectors like tech, financial services, supply chain, and support functions. This shift is driven by businesses focusing on agility and headcount management, opting for flexible staffing solutions.
The manufacturing sector is expected to continue expanding in 2025, especially the Electronics cluster, along with Information & Communications, Finance and Insurance. On the other hand, the growth of consumer-facing sectors such as retail trade and food & beverage services is likely to remain lacklustre.
Compensation and Talent Management
Nominal incomes continued to increase, and at a pace faster than the preceding year. The nominal median gross monthly income of full-time employed residents grew from $5,197 in 2023 to $5,500 in 2024.
In artificial intelligence (AI), annual salary increments are generally up to 5%; for employees moving between companies, the potential is for a higher 15% increase. This reflects the premium placed on skilled professionals in emerging fields.
Companies are also placing a greater emphasis on total rewards, offering flexibility and comprehensive benefits to attract and retain talent in line with the growing desire for work-life balance and career flexibility.
Employment Composition and Trends
The unemployment rate remained stable at 1.9% in 2024, and retrenchments were primarily driven by business reorganization, rather than sector downturns.
The share of Professionals, Managers, Executives & Technicians (PMETs) among employed residents reached over 60% in 2024. This is a result of higher educational attainment and a shift of resident workers toward more productive sectors, particularly in financial services, insurance, information and communications, and professional services. It is interesting to note that 59.3% of workers who transition into industries have experienced wage increases. This suggests a positive employment outcome for those changing career paths.
Skilled Foreign Labor
The number of Employment Pass (EP) holders, representing highly skilled foreign workers, increased from 193,700 in 2019 to 202,400 in 2024. Meanwhile, the number of S Pass holders, for mid-level skilled professionals, declined from 200,000 to 176,400. These shifts indicate Singapore’s preference for attracting highly skilled talent while maintaining a tight control over mid-level foreign workers, which is consistent with the broader trends of upgrading the workforce and improving productivity across sectors.
Outlook for 2025
Despite global uncertainties, Singapore’s job market remains resilient. The demand for skilled talent continues to drive hiring, particularly in AI, data science, and other emerging technologies. Companies will increasingly rely on contract and flexible roles, and Singapore will remain a critical business hub in Asia, offering global companies and talent significant opportunities for growth.
Follow Consea to stay updated on current job market trends worldwide!
Sources:
Ministry of Trade and Industry Singapore, Press Release: MTI Maintains 2025 GDP Growth at “1.0 to 3.0 Per Cent”, 14/02/2025
Singapore Ministry of Manpower, Report: Labour Force in Singapore 2024
Incorp.asia, Why Should YOU set Up a regional HQ in Singapore? - 19/09/2024 https://www.incorp.asia/blogs/why-set-up-regional-hq-in-singapore/
Authors
Valentina Meng, Recruitment Consultant & China Social Media Manager
Matteo Scipioni Bertoli, Head of Business Development & Delivery APAC
Unmasking Brilliance: Empowering Strategies to Conquer Imposter Syndrome
Managing the impostor phenomenon during a job interview can be a daunting task, but with some guidance from a recruiter, candidates can navigate this challenge more effectively. First and foremost, it's essential for candidates to acknowledge that they are not alone in experiencing these feelings of self-doubt. Impostor syndrome is more common than one might think, even among highly successful individuals. Understanding that these feelings are normal can help alleviate some of the anxiety associated with them.
Secondly, candidates should focus on their achievements and qualifications. Before the interview, it's crucial to review their resume and remind themselves of their accomplishments. By emphasizing their strengths and past successes, candidates can boost their confidence and counteract feelings of inadequacy. Additionally, they should prepare specific examples of how their skills and experiences align with the job requirements. Being well-prepared with concrete evidence can help candidates feel more self-assured during the interview.
Furthermore, it's essential for candidates to practice positive self-talk. They should challenge negative thoughts and replace them with affirmations of their capabilities. Recruiters recommend practicing mindfulness techniques to stay present during the interview and avoid getting caught up in self-doubt. Breathing exercises and visualization can be particularly helpful in staying calm and focused.
Lastly, seeking support from a mentor or coach can be invaluable. A trusted advisor can provide valuable feedback, help candidates recognize their worth, and offer guidance on how to handle the impostor phenomenon. Overall, by acknowledging their feelings, focusing on their achievements, practicing positive self-talk, and seeking support, candidates can effectively manage the impostor phenomenon during a job interview, increasing their chances of presenting themselves confidently and securing the desired position.
Example how Consea has helped candidates navigate Imposter Syndrome
During a recent interview for a senior HR management position, the candidate, let's call her Melissa, exhibited classic signs of Imposter Syndrome. Melissa had an impressive resume with years of experience in her field, yet as soon as the interview started, she seemed uneasy.
As I delved into her accomplishments and expertise, she downplayed her achievements, attributing them to luck or teamwork rather than acknowledging her own skills. It was clear that she struggled with recognizing her worth and was haunted by the fear of not being as capable as her credentials suggested.
In an attempt to address this, I shifted the conversation to focus on specific projects she had led. I asked for details about challenges faced, strategies employed, and outcomes achieved. As she passionately described her experiences, it became evident that her contributions were significant and impactful.
This scenerio highlighted the importance of not just evaluating a candidate's qualifications on paper but also understanding their self-perception and mindset. Here at Consea, I, as a headhunter, benefited from delving deeper into the psychological aspects of the candidate to uncover hidden potential and help them overcome Imposter Syndrome during the interview process.
Author: Julia Galloway, Human Resources Business Partner
Navigating China Retail Landscape and HR Implications
As mentioned in our previous article on China Labor Market Outlook, numbers for China seem to be encouraging and improving for this 2024, further evidenced by last year GDP growth of 5.2%, which accounts for one third of global GDP.
While several macroeconomic indicators are pointing in a promising direction, there are also other areas that are still cause for concern, shaping both consumer behavior and enterprise strategies. Indeed, a negative consumer and business “sentiment” still permeate in China, which is influenced by a variety of factors: the collapse in property transactions and a 5% decline in exports, zero growth in fixed asset investment by privately-owned companies, and double-digit youth unemployment.
Although lower sentiment levels increased savings rate to 31.7% in 2023, which represents a significant reservoir of potential spending power should consumer confidence recover, consumer sentiment in China reflects a blend of caution and resilience. Based on McKinsey report, in general consumers are spending more conservatively and they are not necessarily opting for cheaper brands. They are seeking more value through different channels or discounts and promotions. This is evidenced by a significant portion of consumers (47%) changing retailers for lower prices rather than opting for cheaper brands (19%).
Looking at the tourism industry, while international travel has rebounded significantly, reaching 77% of pre-COVID levels by early 2024, spending patterns indicate a shift towards experiences over mere transactions. However, even though buying abroad is not that attractive compared to the past (price attractiveness), Chinese travelers spend more than pre-covid as shopping is still a substantial part of the travelling experience:
Japan: +117%
Singapore: +40%
Europe: +20%
(these data are related to 2023 in comparison with the consumption in 2019)
The automotive sector represents another promising area of growth in consumption. While overall auto sales grew by a 17%, during the first two months of the year, electric vehicles outpaced this number with a 37% surge, highlighting changes in consumer preference for greener alternatives. In fact, EVs now represent 35.6 percent of China's total automotive market.
Thus, even though there is still a negative sentiment from consumers and enterprises, number shows that in 2024 retail sales grew of +5%, with goods contributing a 4.6% rise. Remarkably, foodservice sales leapt by 12.5 percent, indicating a robust recovery in hospitality sectors.
Future Trends: Charting the Course Forward
Looking ahead, key trends emerge that will shape consumer behavior and market dynamics. Consumers are increasingly seeking self-insurance, purpose-driven brands, and a sense of belonging. They are becoming savvier about what they buy and have high expectations on and willingness to pay for meaningful ESG attributes, e.g. authenticity and transparency, brand’s social responsibility and reputation. This calls for brands to establish clear identities and foster communities around their products, while maintaining a delicate balance between brand value and trendiness, which is pivotal in navigating the evolving retail landscape.
HR Implications: Navigating Change and Uncertainty
In the realm of HR, the shifting retail and overall market landscape and consumers spending behaviors necessitate strategic adaptation. Disruptive supply chain issues, currency fluctuations, and a shifting regional landscape necessitates cost-cutting measures, for a more streamlined and efficient operations. Considering this, businesses have adopted a more conservative outlook and measures. Hiring freezes and digital transformation initiatives are on the rise, with 40% and 34% of companies respectively prioritizing these areas. Moreover, restructuring efforts, often involving dual roles managed by single individuals, are becoming commonplace.
As China's retail sector charts a course through turbulent waters, adaptation and agility emerge as the cornerstones of success. By embracing change, fostering resilient consumer relationships, and strategically navigating HR implications, retailers can carve a path towards sustainable success in China's evolving retail landscape.
Follow us on LinkedIn to stay up to date!
Sources:
Event: Retail Insights: Navigating Recent Uncertainties Among China Consumers: Brand Building Versus Short Term Actions, Italian Chamber of Commerce
2023 McKinsey China Consumer Report, McKinsey & Company
Report: Mainland China and Hong Kong Luxury Market: Unlock infinite growth possibilities and sustainable value of luxurious lifestyle, PWC, April 2024
Article: Consumer market overcomes COVID impact, China Daily, April 2024 https://www.chinadaily.com.cn/a/202404/29/WS662efa39a31082fc043c4923.html
Authors
Alessandra Yin, Senior Consultant APAC
Valentina Meng, Recruitment Consultant & China Social Media Manager
In the intricate dance of global commerce, the proximity of nations often plays a crucial role. Nowhere is this more evident than in the evolving relationship between the United States and Mexico. The rise of nearshoring—the practice of relocating production processes to nearby countries—has sparked a new chapter in their economic interdependence.
Nearshoring has emerged as a strategic response to the limitations an d uncertainties associated with traditional offshoring practices. As US companies seek to optimize their supply chains and reduce dependency on distant manufacturing hubs, Mexico has emerged as an attractive alternative. The geographical proximity, coupled with favorable trade agreements such as the USMCA, has positioned Mexico as a prime destination for nearshoring initiatives.
The convergence of Asian investment in Mexico under the USMCA framework holds promise for all stakeholders involved. Despite the difficult relations with the US in the most recent year(s), thanks to the Nearshoring, Asian firms gain access to a vast consumer market, reduced trade barriers, and a competitive edge in global supply chains. Meanwhile, Mexico stands to benefit from increased foreign direct investment, technology transfer, and job creation, bolstering its position as a manufacturing powerhouse in the Americas.
The impact of nearshoring on the US-Mexico relationship transcends bilateral trade figures. It catalyzes economic growth on both sides of the border, stimulating job creation, infrastructure development, and innovation. By leveraging Mexico's skilled workforce and strategic location, US companies gain a competitive edge in the global marketplace while contributing to the socio-economic advancement of their southern neighbor.
As Mexico gears up to welcome a wave of new businesses and witness the expansion of existing enterprises in 2024, the outlook for job opportunities has never been brighter. With projections estimating the creation of up to 400,000 jobs in the formal sector within the first three months of the year, the Mexican workforce stands poised to embark on a journey of growth and prosperity. By embracing innovation, seizing opportunities, and leveraging their talents, individuals can play a pivotal role in driving economic growth, fostering innovation, and shaping the future of Mexico's vibrant labor market.
In today's hyper-competitive business landscape, talent has emerged as the ultimate differentiator and driver of organizational success. By partnering with Consea Group, companies gain access to a strategically committed to helping them attract, retain, and develop top talent that propels their business forward. Whether it's navigating the challenges of globalization, addressing industry-specific talent gaps, or adapting to evolving market trends, Consea Group empowers clients to stay agile, innovative, and ahead of the competition.
With established offices in Mexico (since 2015) and in the US (since 2017) Consea Group brings a wealth of knowledge and expertise to the table. Leveraging their deep understanding of different markets and industries, their team of seasoned professionals is adept at identifying and attracting top-tier talent, both locally and internationally. Whether it's executive leadership roles, specialized technical positions, or niche skill sets, Consea Group has the insight and resources to deliver customized solutions tailored to each client's unique requirements.
Follow Consea Group to stay updated on the latest labor market trends and check out our latest open positions!
Authors:
Antonella Cerabona, CEO North America & LATAM
Enríque Pedroza, Business Development Manager MX
Read the article in Spanish:
Nearshoring: un punto de inflexión para el comercio mundial
En la intrincada danza del comercio global, la proximidad de las naciones suele desempeñar un papel crucial. En ninguna parte esto es más evidente que en la evolución de la relación entre Estados Unidos y México. El auge del Nearshoring (la práctica de reubicar los procesos de producción en países cercanos) ha desencadenado un nuevo capítulo en su interdependencia económica.
El Nearshoring ha surgido como una respuesta estratégica a las limitaciones e incertidumbres asociadas con las prácticas tradicionales de deslocalización. Mientras las empresas estadounidenses buscan optimizar sus cadenas de suministro y reducir la dependencia de centros de fabricación distantes, México ha surgido como una alternativa atractiva. La proximidad geográfica, sumada a acuerdos comerciales favorables como el T-MEC, ha posicionado a México como un destino principal para iniciativas de nearshoring.
La convergencia de la inversión asiática en México bajo el marco del T-MEC es prometedora para todos los actores involucrados.
A pesar de las difíciles relaciones con Estados Unidos en los últimos años, gracias al Nearshoring las empresas asiáticas obtienen acceso a un vasto mercado de consumo, barreras comerciales reducidas y una ventaja competitiva en las cadenas de suministro globales. Mientras tanto, México se beneficiará del aumento de la inversión extranjera directa, la transferencia de tecnología y la creación de empleo, lo que reforzará su posición como potencia manufacturera en las Américas.
El impacto del Nearshoring en la relación entre Estados Unidos y México trasciende las cifras del comercio bilateral. Cataliza el crecimiento económico en ambos lados de la frontera, estimulando la creación de empleo, el desarrollo de infraestructura y la innovación.
Al aprovechar la fuerza laboral calificada y la ubicación estratégica de México, las empresas estadounidenses obtienen una ventaja competitiva en el mercado global y al mismo tiempo contribuyen al avance socioeconómico de su vecino del sur.
Mientras México se prepara para recibir una ola de nuevas empresas y ser testigo de la expansión de las empresas existentes en 2024, las perspectivas de oportunidades laborales nunca han sido más brillantes. Con proyecciones que estiman la creación de hasta 400.000 empleos en el sector formal dentro de los primeros tres meses del año, la fuerza laboral mexicana está preparada para embarcarse en un viaje de crecimiento y prosperidad. Al adoptar la innovación, aprovechar las oportunidades y aprovechar sus talentos, las personas pueden desempeñar un papel fundamental a la hora de impulsar el crecimiento económico, fomentar la innovación y dar forma al futuro del vibrante mercado laboral de México.
En el panorama empresarial hipercompetitivo actual, el talento se ha convertido en el principal diferenciador e impulsor del éxito organizacional. Al asociarse con Consea Group, las empresas obtienen acceso a una compañia estratégicamente comprometida para ayudarlas a atraer, retener y desarrollar los mejores talentos que impulsen su negocio. Ya sea enfrentando los desafíos de la globalización, abordando las brechas de talento específicas de la industria o adaptándose a las tendencias cambiantes del mercado, Consea Group permite a sus clientes mantenerse ágiles, innovadores y por delante de la competencia.
Con oficinas establecidas en México (desde 2015) y en EE. UU. (desde 2017), Consea Group aporta una gran cantidad de conocimientos y experiencia. Aprovechando nuestro profundo conocimiento de diferentes mercados e industrias, nuestro equipo de profesionales experimentados son expertos en identificar y atraer talento de primer nivel, tanto a nivel local como internacional. Ya sean roles de liderazgo ejecutivo, puestos técnicos especializados o conjuntos de habilidades específicas, Consea Group tiene el conocimiento y los recursos para ofrecer soluciones personalizadas adaptadas a los requisitos únicos de cada cliente.
¡Siga a Consea Group para mantenerse actualizado sobre las últimas tendencias del mercado laboral y consulte nuestros últimos puestos vacantes!
Autores:
Antonella Cerabona, CEO North America & LATAM
Enríque Pedroza, Business Development Manager MX
Consea APAC: China Labor market outlook, with an eye on Asia 2024
More than a year after China’s reopening and its return to normal life, the exodus of foreign talent seems to have been partially stopped, even if many expats had already left the country between 2020 and 2022. In 2020, there were approximately 845,000 foreigners in Mainland China[1], including Chinese citizens holding foreign passports, while in 2023 the recorded number was 711,000.[2] At first glance, this number seems very encouraging, however, what might have changed is its composition. Based on reports from the different European chambers of commerce in China, the number of citizens coming from these countries has drastically reduced. As a matter of fact, according to the report issued by the European Union Chamber of Commerce, 25% of German citizens have left the country permanently, and similar numbers have also been recorded for French and Italian citizens (-20% each).[3] This drop appears to be much more drastic than the -15% recorded in 2023. If we take a closer look, this trend had already started prior the pandemic. Between 2010 and 2020, the number of American (-23%), French (-39%) and German (-22%) citizens on Chinese territory declined sharply, and so did the number of citizens from other countries such as Japan (-44%), South Korea (-51%), Singapore (-32%) and Australia (-4%). On the other hand, inflows from countries such as Myanmar (+783%), Vietnam (+119%), Laos (+590%), Cambodia (+1159%) and North Korea (+88 %) have increased exponentially, as well as for other African and South American countries.[4]
The risk, therefore, for the country is to have lost a significant number of high-skilled labor from more developed countries, and to have partially compensated for this loss with the entry of low-skilled labors from emerging countries. This theory also seems to be supported by the distribution of foreign citizens on the territory; cities such as Beijing and Shanghai recorded a sharp decline in the number of immigrants in the period between 2010-2020 (-41.5% and -21.4% respectively), while Yunnan province recorded a 700% increase.[5]
In conclusion, although precise data regarding the three-year period of 2020-2022 is still lacking, it is easy to assume that the trend that was already in place in the previous decade has been accelerated by the pandemic and the related restrictions put in place.
Moreover, the disruption brought by the pandemic also had, among other effects, a strategic change towards the Chinese market; indeed, many foreign players have decided to adopt a “China for China” approach. China, therefore, is no longer a potential hub for managing the Asia/APAC region, but rather a market with highly localized organizational structures and a scope of responsibility limited only to China Mainland or Greater China borders. This has clearly triggered a greater focus on recruiting local talent, minimizing the number of expats in the country. We, as Consea, have seen first-hand a reduction in the number of executive searches (hyperlink https://consea-group.com/head-hunting/ ) of expatriates in the area.
This new structure has led many companies to move their regional HQ, or to relocate some of the foreign decision makers to Singapore or other areas in South East Asia or Far East, depending on the industry and the business model implemented. Furthermore, many companies are evaluating other destinations in Asia for their new FDI (Foreign Direct Investment), such as Singapore (hyperlink https://consea-group.com/2023/06/14/nuova-aperto-a-singapore/ ), but also Vietnam, Thailand, Malaysia and India, particularly for the manufacturing sectors. This consideration is the result of several factors, including:
the high labor cost: disposable income per capita in 2023 amounted to 39,218 yuan, up 3% on an annual basis in nominal terms[6];
the aging of the workforce: the age of the Chinese workforce increased from 37.1 in 2017 to 38.3 in 2022[7];
other macro-economic factors such as declining population, risk of deflation or stagnation, domestic consumption and exports still low, downturn of real estate market;
and the willingness to diversify the supply chain.
FDI in the ASEAN region grew between 2020 and 2022 up to $227Bn, although 2023 saw a decline of -16%, but despite this, the number of greenfield project announcements in the region still increased by 37%. Also, India had a similar path in terms of incoming FDI and "greenfield projects".[8] For this reason, we are seeing a growing demand for foreign talent coming from these areas.
Nevertheless, numbers for China seem to be encouraging and improving for 2024. According to official data, unemployment in urban areas fell by 0.4 percentage points in 2023 to 5.2%[9], so did youth unemployment which fell to 14.9% in December 2023, after the peak of 21.3% reached in July of the same year[10]. GDP ‘s growth has returned to levels around +5%[11], and the government is planning various measures and incentives aimed at helping the economy. Among these, of particular importance for companies and foreign citizens, there are certainly the tax exemption on benefits for foreign staff, promulgated until 31 December 2027, and the "visa-free" entry guaranteed to citizens from the main Europeans countries, as well as from Malaysia and Singapore. Although not sufficient to reverse a trend that has been undergoing for several years now, they are certainly important signs of going in the right direction.
Author: Matteo Scipioni Bertoli, Head of Business Development & Delivery APAC
[1] China embraces increasing foreign residents, China Daily, 2021 https://global.chinadaily.com.cn/a/202105/12/WS609b14c5a31024ad0babd49f.html
[2] Foreigners living in China in 2023 return to 85% of 2019 levels; simplified border measures to facilitate more foreign visitors: NIA, Global Times, 2024 https://www.globaltimes.cn/page/202401/1305619.shtml
[3] European Chamber of Commerce, European Business in China Shanghai Position Paper 2023/2024.
[4] Number of foreigners in China, results of 7th national census, Expat Focus, 2022 https://mp.weixin.qq.com/s/nfm1Vzfdu0LC8mXgBggxbQ
[5] Goodbye China: What Do Fewer Foreigners Mean for Multinationals and the Chinese Economy?, Intereconomics, volume 57, 2022, number 5 https://www.intereconomics.eu/contents/year/2022/number/5/article/goodbye-china-what-do-fewer-foreigners-mean-for-multinationals-and-the-chinese-economy.html#footnote-008
[6] China's per capita disposable income grows 6.3 pct in 2023, Xinhua, The State Council The People’s Republic of China January 17, 2024 https://english.www.gov.cn/archive/statistics/202401/17/content_WS65a73d26c6d0868f4e8e32e0.html
[7] China’s Changing Labor Market – Trends and Future Outlook, China Briefing, 2023 https://www.china-briefing.com/news/chinas-labor-force-data-trends-and-future-outlook/
[8] Global FDI in 2023 was weak, with lower flows to developing countries, United Nations UNCTAD, Issue 46, 2024 https://unctad.org/system/files/official-document/diaeiainf2024d1_en.pdf
[9] China Unemployment Rate, Trading Economics https://tradingeconomics.com/china/unemployment-rate
[10]China Youth Unemployment Rate, Trading Economics https://tradingeconomics.com/china/youth-unemployment-rate
[11] National Economy Witnessed Momentum of Recovery with Solid Progress in High-quality Development in 2023 https://www.stats.gov.cn/english/PressRelease/202401/t20240117_1946605.html
The 25th Pambianco Fashion Summit titled “The Fashion Industry and the Management of Uncertainty,” was held on Wednesday, November 11th, 2020. The event highlighted the impact the pandemic has had on global markets and the actions taken by companies to address this crisis.
Resulting from this year’s turbulent events, the luxury fashion sector was severely damaged by the global closure of shops, as well as by the lack of tourists – something still having an impact in European markets. The key component for facing adversity, common to all the interlocutors present at the summit, ultimately relies on “resilience.” Thanks to the willpower and team spirit, the featured companies present at the event expressed gratitude and satisfaction for the results obtained.
A recovery was highlighted in the third quarter, especially in the Asian market driven by China, where domestic consumers returned to travel, giving advantage to the areas where tax-free poles have been created (Hainan) and ultimately enabling those to benefit from the new concessions introduced by the government.
From the analysis conducted by PwC on Millennials and Generation Z, it has been discovered that in the new normal, consumers will have greater attention to the price of products and will seek a safe and accessible customer experience. Engagement will be shifted towards digital and companies will have to place more and more attention to issues relating to sustainability.
If the number of consumers who moved their shopping channel online during Covid-19 has increased in all markets, and that number will no longer return to pre-pandemic levels, it is also true that the physical brick & mortar store will continue to represent an important space for the consumer; consumers want to “touch and feel” and will continue to seek that. Omnichannel is now essential, and it has to allow a true integration between physical and digital, giving rise to a “phy-gital” shopping experience.
Another interesting find, provided by Silvio Campara, CEO of Golden Goose, underlined how the crisis has definitively changed the way of approaching the consumer, who can no longer be defined by the 4 P model (Place / Product / Price / Promotion) but from a new model based on 4 Cs (Consumer / Community / Conversations / Consideration) that all revolve around People.
A key role in the world of fashion is certainly played by Italy, where 41% of European fashion production takes place. Furthermore, 60% of the high-end product is produced in Italy (data: National Chamber of Fashion). Italian textiles and clothing allocate about 66% of their production to exports (data: Confindustria Moda). Fashion is, therefore, the second most important industry at a national level and it is extremely important to protect the entire chain that goes from large brands to SMEs. In addition to the issues of sustainability and digitalization – in order to overcome the crisis, it will be crucial also to focus on competencies and on the training of people (both for technical roles and within the retail locations): this strategy will protect the fashion chain and create added value.
Even if the numbers are still not trending positive, signs of cautious optimism came from the summit; once the health crisis is resolved, consumers will return to travel and choose European markets for their purchases because they are more advantageous to them. Ultimately, a new approach to the global consumer and an organic integration between online and offline will allow for greater engagement and the possibility of a complete customer experience.
Interested in the summit? Find out more here!
Nowadays, investing in young people should not just be a slogan, but the best strategy companies should adopt to grow, innovate and gain competitive advantages over their competitors. Regarding Consea Head Hunting's experience in managing recruitment processes with the younger generation, a certain rigidity shown by candidates is emerging, expressed especially in terms of demands related to hybrid working opportunities, career plans and business ethics. As a result, there is often a significant lack of motivation and engagement when faced with an offer that fails to detail or satisfy these aspects.
WHAT CAN ORGANIZATIONS DO?
To make themselves more attractive to the younger generation, companies should first of all understand what is actually being sought, and in this regard, there is an increasing emergence of the importance for young people being able to identify with company values in terms of sustainability (environmental, valuing diversity, inclusive approach and equity), ethics, training (with an important focus on soft skills, skills that can become an asset to the individual and not just a direct benefit to the company as is the case with technical skills), policies for investing in resources and sharing the expected goals and their consequent development plans envisaged not only in terms of vertical growth, but also about involvement in initiatives, task forces and projects aimed at the well-being of the internal community. Equally important seems to be the attention paid to the work-life balance, flexibility and wellbeing policies within the organization.
In terms of attraction and retention, an important role is played by the organization's external communication as the new generations put great importance to the company's website and its presence on social networks as well as, in general, its web reputation.
COMPANY AS COMMUNITY
This focus is symptomatic of the fact that nowadays the company is no longer considered a mere workplace, on the contrary, it increasingly constitutes a real community for new generations, who can appreciate opportunities of involvement that can allow them to come closer and share experiences with other employees belonging not only to different areas or functions, but also to different generations; of this a significant example could be reverse mentoring.
BETRAYAL OR OPENNESS TO CHANGE?
In conclusion, we can highlight one more peculiarity: increasingly, new generations are experiencing change as a development opportunity to enrich their skills and, therefore, the decision to leave one company for another should not be experienced as a betrayal; on the contrary, it would be much more functional for the organization to maintain relations with the resource who has changed reality by opting for a new context. This attitude could generate future opportunities for a new encounter and possible opportunities to reintegrate the resource, enriched by the new experiences gained in the meantime.
Authors:
Sara Ruffinatti – Senior Consultant & Executive Coach
Marzia Pio – Junior Consultant at Consea Executive Search
Navigating the Impact of US Tariffs: Industry-Specific Challenges and Strategic Responses
Updates as of April 29th:
President Donald Trump has signed an executive order and a proclamation to ease auto tariffs. While the 25% tariff on imported cars remains unchanged, a new 25% tariff on auto parts will be implemented starting this weekend 3.
The new fine print includes provisions for reimbursements to domestic car producers importing car parts. These reimbursements will be capped at 3.75% of the value of domestically produced cars for the first year, decreasing to 2.5% in the second year 3. Additionally, cars containing 85% parts that comply with the United States-Mexico-Canada Agreement (USMCA) and produced domestically will effectively avoid tariffs.
In the meantime, on the global scale:
China Eases Tariffs on Select US Goods: China has recently waived tariffs on US ethane imports, allowing Beijing to maintain a firm public stance while offering some relief.
US-China Tariff Negotiations: President Trump has stated that the US will not drop tariffs on China without something substantial in return. He emphasized the need for China to be more open to US businesses and products.
Tariff Talks with India: US Treasury Secretary Scott Bessent mentioned that India is likely to finalize a bilateral trade agreement with the US to avert reciprocal tariffs.
Economic Impact: The ongoing tariff policies have led to a turbulent economy, with China's manufacturing activity falling to a near two-year low.
Recent Developments: Global Reactions and Market Impacts
Since the announcement, several key developments have emerged:
● China's Retaliation: China has increased reciprocal tariffs on US goods to 84%, significantly impacting US exports to China.
● European Union's Response: The EU imposed 25% tariffs on a range of US imports as a countermeasure.
● Tariff Adjustments: President Trump authorized a 90-day pause on reciprocal tariffs for most countries, except China, where the tariff rate increased to 125%.
● Stock Market Surge: The US stock market surged, gaining $4 trillion in value after the announcement of a 90-day pause on tariffs for over 75 countries.
Introduction
In April 2025, President Trump announced a series of new tariffs aimed at addressing trade imbalances and protecting American industries. These tariffs, which vary by industry, have significant implications across sectors. This article not only explores the specific impacts on the automotive, machinery, food and beverage, medical devices, and pharmaceutical industries but also highlights the strategic role that Consea's executive search and human capital consulting services can play in helping companies navigate these turbulent times.
Automotive Industry: A 25% Tariff Shock
The automotive sector now faces a 25% tariff on imports, prompting immediate disruptions—Stellantis, for instance, has already announced temporary layoffs in the US and production suspensions in Mexico and Canada. These underline challenges the need for resilient leadership.
Machinery Industry: Rising Costs and Supply Chain Disruptions
Tariffs on steel and aluminum have driven up costs for the machinery sector, impacting production schedules for giants like Caterpillar and John Deere. Supply chain delays are becoming a norm, threatening profitability and operational efficiency.
Food and Beverage Industry: Tariffs on Italian Imports
With a 20% tariff now imposed on imports, the food and beverage industry faces steep cost pressures—illustrated by coffee brands like Lavazza planning to shift to 100% US production. Such policy changes force brands to re-evaluate their sourcing and supply chain strategies.
Is Made in Italy in Danger?
Our expertise helps companies balance tradition with innovation, ensuring that cherished brands continue to thrive even in a challenging regulatory landscape.
Medical Devices: Global Supply Chain Challenges
Medical device manufacturers are grappling with tariff-induced cost increases on globally sourced components. These challenges can delay production and reduce the availability of critical medical technologies.
Pharmaceutical Industry: An Exemption Amidst Uncertainty
While the pharmaceutical industry currently enjoys a tariff exemption, the potential for future policy changes requires vigilance.
For These Issues, and Others, Consea is Qualified to Help
Consea leverages decades of global expertise and a tailored, relationship-driven approach to help companies navigate the disruptive effects of new tariffs. By identifying and recruiting agile leaders equipped to manage supply chain challenges and operational shifts, we enable businesses to adjust quickly to economic pressures. Our integrated executive search and human capital consulting solutions offer strategic guidance that not only fills critical leadership gaps but also supports long-term growth and resilience in a volatile market.
A Confident Partner in the Face of Uncertainty
The new US tariffs present significant challenges across multiple industries, but with strategic planning and the right executive talent, companies can navigate these obstacles and continue to thrive. Consea's expertise in both executive search and human capital consulting is critical in supporting businesses through these transitions by providing leaders who drive innovative, agile responses.
Take the next step : Contact Consea today for a complimentary, industry-specific tariff impact consultation to learn how we can tailor our executive search and consulting solutions to safeguard your business and drive success in this volatile market.
Schedule Your Free Tariff Impact Consultation
Upskilling & Reskilling: The Future of Work, Talent Shortage, and Human Capacity Within Organizations
According to several market studies, the talent shortage has reached its highest level in Mexico.
This is due to a lack of specific skills (a mix of technical capabilities and human factors) required from companies, especially in particular industries. Combined with the accelerated technological change management process e digital transformation we are living in, the scarcity of talent availability is further complicating the recruiting needs of many hiring managers.
In 2022, in Mexico, and in some LATAM countries, more than 60% of employers reported difficulties in finding the right match – the highest number in the last 10 years.
Today, it became essential to many organizations, to improve workforce skills as well as train and "recycle” professional talents in order to fill their internal positions and stay competitive. These two techniques are called Upskilling & Reskilling.
Upskilling is the process of learning new skills or of teaching workers new skills.
Reskilling is the process of learning new skills so you can do a different job, or of training people to do a different job.
These tools became pivotal to address the Human Capital needs within the work environment, as well as to promote career pathing, succession planning, and retention programs, for most companies.
Within the markets Consea operates with, we identified few sectors that currently are presenting the greatest demand for high-skilled profiles in Mexico: supply chain and manufacturing, finance and administrative positions, sales and marketing and engineering.
To support your Human Capital needs, Consea Groupcan design a consulting plan tailored for your company, defining together an effective TALENT SEARCH and COMPANY CULTURE FITTING strategy.
Follow Consea Group on LinkedIn to stay up to date on the latest trends in the labor market and to find out how to create and maintain a positive working environment in your organization.
Authors
Enrique Pedroza - Business Development Manager in Consea Group, Mexico
Read the article in Spanish:
Upskilling & Reskilling: El futuro del trabajo, la escasez de talento y las capacidades humanas dentro de las organizaciones
Acorde a diferentes estudios de mercado, la escasez de talento ha llegado a su nivel más alto en México.
Esto se debe a la falta de habilidades específicas (una combinación de capacidades técnicas y factores humanos) requeridas por las empresas, especialmente en industrias particulares.
Combinado con el acelerado proceso de gestión del cambio tecnológico en el que vivimos y transformación digital, la escasez de talento complica aún más las necesidades de muchos Gerentes de contratación.
En 2022, en México y en algunos países de LATAM, más del 60% de los empleadores reportaron dificultades para encontrar el personal adecuado, el número más alto en los últimos 10 años.
Hoy en día, se vuelve esencial para las organizaciones mejorar las habilidades de la fuerza laboral, así como capacitar y "reciclar" talento profesional para ocupar un nuevo puesto dentro de la compañía y mantenerse competitivos. Estas dos técnicas se denominan Upskilling & Reskilling.
Upskilling busca enseñar nuevas habilidades a un trabajador para optimizar su desempeño, mientras que Reskilling también conocido como reciclaje profesional, busca capacitar a un empleado para adaptarlo a un nuevo puesto dentro de la empresa.
Estas herramientas se vuelven fundamentales para abordar las necesidades de capital humano dentro del entorno laboral, así como para promover la orientación profesional, la planificación de la sucesión y los programas de retención para la mayoría de las empresas.
Dentro de los mercados con los que opera Consea Group, identificamos algunos sectores que actualmente presentan la mayor demanda de perfiles altamente calificados en México, tales como cadena de suministro, manufactura, finanzas, administrativos, ventas, mercadeo e ingenierías.
Para apoyar sus necesidades de Capital Humano, Consea Group puede diseñar un plan de consultoría a la medida de su empresa, definiendo en conjunto una estrategia efectiva de BÚSQUEDA DE TALENTO que AJUSTE A LA CULTURA DE LA EMPRESA.
Sigue a Consea Group en Linkedin para estar al día de las últimas tendencias en el mercado laboral y saber cómo crear y mantener un clima laboral positivo en tu organización.
35 years in Consea – Interview with Barbara Braida
You’ve been at Consea for many years, is there a memory or special moment that has stayed with you?
Today, there’s greater focus on personal well-being, flexibility, and quality of life. Twenty-five years ago, these topics were not central to company policies, especially in smaller organizations. When I found myself needing a different balance between my personal life and work, I was given that opportunity, and it allowed me to make important choices with peace of mind.
Over the years, how have you seen Consea evolve, and what has that change meant for you?
I’ve had the opportunity to witness all of Consea’s major milestones: its expansion first across Italy and then internationally, the diversification of services and target markets, and the arrival of the new generation of the Altomonte family at the Group’s helm. Despite these changes, the company’s founding values have remained unchanged. This journey has also shaped my own professional path, particularly as I’ve focused on the U.S. market for many years.
What do you enjoy most about your job?
The variety. While the selection process follows a similar structure, every project is unique—industry, company culture, and candidate requirements always vary.
What skill or personal quality have you developed the most thanks to your experience at Consea?
Working in an ever-changing environment and across diverse markets has helped me build strong adaptability and enhanced my interpersonal and cross-cultural communication skills.
What has been the biggest challenge in your career, and how did you overcome it?
Becoming a recruiter for the U.S. market. It was a completely new environment for me, but I had the opportunity to build and refine the necessary skills directly on the field. Every step of the journey has been a chance to grow, and constant exposure to new situations has helped me develop new abilities.
How would you describe Consea to someone who doesn’t know the company?
Consea is a company that blends professionalism and strategic vision with a strong human approach. Over time, it has grown and adapted to market changes without ever losing sight on its core values. It’s a dynamic, international organization that supports companies in identifying top talent. For me, Consea means growth, stimulating challenges, and ongoing development opportunities.
How do you envision Consea’s future?
Bright. I believe Consea will continue to monitor market trends and socioeconomic developments closely, respond quickly to new challenges, and explore emerging technologies to stay aligned with client needs.
If you had to choose one adjective to describe yourself, what would it be?
Determined.
What’s your favorite activity outside of work, and how does it help you recharge?
I enjoy reading and watching crime or sci-fi series. It allows me to fully disconnect from the everyday routine and engage my mind in a different, stimulating way.
If you could give one piece of advice to your younger self, what would it be?
To embrace change with optimism and to not fear uncertainty, because every challenge is an opportunity for growth.
Singapore’s Job Market: present challenges but positive outlook
Singapore continues to be a major regional hub for global businesses, with over 40,000 international firms, including 7,500+ multinational corporations (MNCs). Its strategic location, favorable business environment, and government efforts to attract global talent and innovation make it an attractive destination for businesses expanding into Asia’s fastest-growing markets.
Economic Overview: Growth and Challenges
In 2024, Singapore’s economy grew by 4.4%, driven primarily by the wholesale trade, finance, and insurance sectors. However, sectors like retail trade and food services contracted, partly due to shifts in consumer behavior, including more locals opting to travel abroad. The GDP growth forecast for 2025 is expected at 1.0% to 3.0%, with slower employment growth anticipated due to global uncertainties.
Job Market Trends
While overall job growth has been moderate, there is a notable increase in contract and replacement roles, especially in sectors like tech, financial services, supply chain, and support functions. This shift is driven by businesses focusing on agility and headcount management, opting for flexible staffing solutions.
The manufacturing sector is expected to continue expanding in 2025, especially the Electronics cluster, along with Information & Communications, Finance and Insurance. On the other hand, the growth of consumer-facing sectors such as retail trade and food & beverage services is likely to remain lacklustre.
Compensation and Talent Management
Nominal incomes continued to increase, and at a pace faster than the preceding year. The nominal median gross monthly income of full-time employed residents grew from $5,197 in 2023 to $5,500 in 2024.
In artificial intelligence (AI), annual salary increments are generally up to 5%; for employees moving between companies, the potential is for a higher 15% increase. This reflects the premium placed on skilled professionals in emerging fields.
Companies are also placing a greater emphasis on total rewards, offering flexibility and comprehensive benefits to attract and retain talent in line with the growing desire for work-life balance and career flexibility.
Employment Composition and Trends
The unemployment rate remained stable at 1.9% in 2024, and retrenchments were primarily driven by business reorganization, rather than sector downturns.
The share of Professionals, Managers, Executives & Technicians (PMETs) among employed residents reached over 60% in 2024. This is a result of higher educational attainment and a shift of resident workers toward more productive sectors, particularly in financial services, insurance, information and communications, and professional services. It is interesting to note that 59.3% of workers who transition into industries have experienced wage increases. This suggests a positive employment outcome for those changing career paths.
Skilled Foreign Labor
The number of Employment Pass (EP) holders, representing highly skilled foreign workers, increased from 193,700 in 2019 to 202,400 in 2024. Meanwhile, the number of S Pass holders, for mid-level skilled professionals, declined from 200,000 to 176,400. These shifts indicate Singapore’s preference for attracting highly skilled talent while maintaining a tight control over mid-level foreign workers, which is consistent with the broader trends of upgrading the workforce and improving productivity across sectors.
Outlook for 2025
Despite global uncertainties, Singapore’s job market remains resilient. The demand for skilled talent continues to drive hiring, particularly in AI, data science, and other emerging technologies. Companies will increasingly rely on contract and flexible roles, and Singapore will remain a critical business hub in Asia, offering global companies and talent significant opportunities for growth.
Follow Consea to stay updated on current job market trends worldwide!
Sources:
Ministry of Trade and Industry Singapore, Press Release: MTI Maintains 2025 GDP Growth at “1.0 to 3.0 Per Cent”, 14/02/2025
Singapore Ministry of Manpower, Report: Labour Force in Singapore 2024
Incorp.asia, Why Should YOU set Up a regional HQ in Singapore? - 19/09/2024 https://www.incorp.asia/blogs/why-set-up-regional-hq-in-singapore/
Authors
Valentina Meng, Recruitment Consultant & China Social Media Manager
Matteo Scipioni Bertoli, Head of Business Development & Delivery APAC
Unmasking Brilliance: Empowering Strategies to Conquer Imposter Syndrome
Managing the impostor phenomenon during a job interview can be a daunting task, but with some guidance from a recruiter, candidates can navigate this challenge more effectively. First and foremost, it's essential for candidates to acknowledge that they are not alone in experiencing these feelings of self-doubt. Impostor syndrome is more common than one might think, even among highly successful individuals. Understanding that these feelings are normal can help alleviate some of the anxiety associated with them.
Secondly, candidates should focus on their achievements and qualifications. Before the interview, it's crucial to review their resume and remind themselves of their accomplishments. By emphasizing their strengths and past successes, candidates can boost their confidence and counteract feelings of inadequacy. Additionally, they should prepare specific examples of how their skills and experiences align with the job requirements. Being well-prepared with concrete evidence can help candidates feel more self-assured during the interview.
Furthermore, it's essential for candidates to practice positive self-talk. They should challenge negative thoughts and replace them with affirmations of their capabilities. Recruiters recommend practicing mindfulness techniques to stay present during the interview and avoid getting caught up in self-doubt. Breathing exercises and visualization can be particularly helpful in staying calm and focused.
Lastly, seeking support from a mentor or coach can be invaluable. A trusted advisor can provide valuable feedback, help candidates recognize their worth, and offer guidance on how to handle the impostor phenomenon. Overall, by acknowledging their feelings, focusing on their achievements, practicing positive self-talk, and seeking support, candidates can effectively manage the impostor phenomenon during a job interview, increasing their chances of presenting themselves confidently and securing the desired position.
Example how Consea has helped candidates navigate Imposter Syndrome
During a recent interview for a senior HR management position, the candidate, let's call her Melissa, exhibited classic signs of Imposter Syndrome. Melissa had an impressive resume with years of experience in her field, yet as soon as the interview started, she seemed uneasy.
As I delved into her accomplishments and expertise, she downplayed her achievements, attributing them to luck or teamwork rather than acknowledging her own skills. It was clear that she struggled with recognizing her worth and was haunted by the fear of not being as capable as her credentials suggested.
In an attempt to address this, I shifted the conversation to focus on specific projects she had led. I asked for details about challenges faced, strategies employed, and outcomes achieved. As she passionately described her experiences, it became evident that her contributions were significant and impactful.
This scenerio highlighted the importance of not just evaluating a candidate's qualifications on paper but also understanding their self-perception and mindset. Here at Consea, I, as a headhunter, benefited from delving deeper into the psychological aspects of the candidate to uncover hidden potential and help them overcome Imposter Syndrome during the interview process.
Author: Julia Galloway, Human Resources Business Partner
Navigating China Retail Landscape and HR Implications
As mentioned in our previous article on China Labor Market Outlook, numbers for China seem to be encouraging and improving for this 2024, further evidenced by last year GDP growth of 5.2%, which accounts for one third of global GDP.
While several macroeconomic indicators are pointing in a promising direction, there are also other areas that are still cause for concern, shaping both consumer behavior and enterprise strategies. Indeed, a negative consumer and business “sentiment” still permeate in China, which is influenced by a variety of factors: the collapse in property transactions and a 5% decline in exports, zero growth in fixed asset investment by privately-owned companies, and double-digit youth unemployment.
Although lower sentiment levels increased savings rate to 31.7% in 2023, which represents a significant reservoir of potential spending power should consumer confidence recover, consumer sentiment in China reflects a blend of caution and resilience. Based on McKinsey report, in general consumers are spending more conservatively and they are not necessarily opting for cheaper brands. They are seeking more value through different channels or discounts and promotions. This is evidenced by a significant portion of consumers (47%) changing retailers for lower prices rather than opting for cheaper brands (19%).
Looking at the tourism industry, while international travel has rebounded significantly, reaching 77% of pre-COVID levels by early 2024, spending patterns indicate a shift towards experiences over mere transactions. However, even though buying abroad is not that attractive compared to the past (price attractiveness), Chinese travelers spend more than pre-covid as shopping is still a substantial part of the travelling experience:
Japan: +117%
Singapore: +40%
Europe: +20%
(these data are related to 2023 in comparison with the consumption in 2019)
The automotive sector represents another promising area of growth in consumption. While overall auto sales grew by a 17%, during the first two months of the year, electric vehicles outpaced this number with a 37% surge, highlighting changes in consumer preference for greener alternatives. In fact, EVs now represent 35.6 percent of China's total automotive market.
Thus, even though there is still a negative sentiment from consumers and enterprises, number shows that in 2024 retail sales grew of +5%, with goods contributing a 4.6% rise. Remarkably, foodservice sales leapt by 12.5 percent, indicating a robust recovery in hospitality sectors.
Future Trends: Charting the Course Forward
Looking ahead, key trends emerge that will shape consumer behavior and market dynamics. Consumers are increasingly seeking self-insurance, purpose-driven brands, and a sense of belonging. They are becoming savvier about what they buy and have high expectations on and willingness to pay for meaningful ESG attributes, e.g. authenticity and transparency, brand’s social responsibility and reputation. This calls for brands to establish clear identities and foster communities around their products, while maintaining a delicate balance between brand value and trendiness, which is pivotal in navigating the evolving retail landscape.
HR Implications: Navigating Change and Uncertainty
In the realm of HR, the shifting retail and overall market landscape and consumers spending behaviors necessitate strategic adaptation. Disruptive supply chain issues, currency fluctuations, and a shifting regional landscape necessitates cost-cutting measures, for a more streamlined and efficient operations. Considering this, businesses have adopted a more conservative outlook and measures. Hiring freezes and digital transformation initiatives are on the rise, with 40% and 34% of companies respectively prioritizing these areas. Moreover, restructuring efforts, often involving dual roles managed by single individuals, are becoming commonplace.
As China's retail sector charts a course through turbulent waters, adaptation and agility emerge as the cornerstones of success. By embracing change, fostering resilient consumer relationships, and strategically navigating HR implications, retailers can carve a path towards sustainable success in China's evolving retail landscape.
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Sources:
Event: Retail Insights: Navigating Recent Uncertainties Among China Consumers: Brand Building Versus Short Term Actions, Italian Chamber of Commerce
2023 McKinsey China Consumer Report, McKinsey & Company
Report: Mainland China and Hong Kong Luxury Market: Unlock infinite growth possibilities and sustainable value of luxurious lifestyle, PWC, April 2024
Article: Consumer market overcomes COVID impact, China Daily, April 2024 https://www.chinadaily.com.cn/a/202404/29/WS662efa39a31082fc043c4923.html
Authors
Alessandra Yin, Senior Consultant APAC
Valentina Meng, Recruitment Consultant & China Social Media Manager
In the intricate dance of global commerce, the proximity of nations often plays a crucial role. Nowhere is this more evident than in the evolving relationship between the United States and Mexico. The rise of nearshoring—the practice of relocating production processes to nearby countries—has sparked a new chapter in their economic interdependence.
Nearshoring has emerged as a strategic response to the limitations an d uncertainties associated with traditional offshoring practices. As US companies seek to optimize their supply chains and reduce dependency on distant manufacturing hubs, Mexico has emerged as an attractive alternative. The geographical proximity, coupled with favorable trade agreements such as the USMCA, has positioned Mexico as a prime destination for nearshoring initiatives.
The convergence of Asian investment in Mexico under the USMCA framework holds promise for all stakeholders involved. Despite the difficult relations with the US in the most recent year(s), thanks to the Nearshoring, Asian firms gain access to a vast consumer market, reduced trade barriers, and a competitive edge in global supply chains. Meanwhile, Mexico stands to benefit from increased foreign direct investment, technology transfer, and job creation, bolstering its position as a manufacturing powerhouse in the Americas.
The impact of nearshoring on the US-Mexico relationship transcends bilateral trade figures. It catalyzes economic growth on both sides of the border, stimulating job creation, infrastructure development, and innovation. By leveraging Mexico's skilled workforce and strategic location, US companies gain a competitive edge in the global marketplace while contributing to the socio-economic advancement of their southern neighbor.
As Mexico gears up to welcome a wave of new businesses and witness the expansion of existing enterprises in 2024, the outlook for job opportunities has never been brighter. With projections estimating the creation of up to 400,000 jobs in the formal sector within the first three months of the year, the Mexican workforce stands poised to embark on a journey of growth and prosperity. By embracing innovation, seizing opportunities, and leveraging their talents, individuals can play a pivotal role in driving economic growth, fostering innovation, and shaping the future of Mexico's vibrant labor market.
In today's hyper-competitive business landscape, talent has emerged as the ultimate differentiator and driver of organizational success. By partnering with Consea Group, companies gain access to a strategically committed to helping them attract, retain, and develop top talent that propels their business forward. Whether it's navigating the challenges of globalization, addressing industry-specific talent gaps, or adapting to evolving market trends, Consea Group empowers clients to stay agile, innovative, and ahead of the competition.
With established offices in Mexico (since 2015) and in the US (since 2017) Consea Group brings a wealth of knowledge and expertise to the table. Leveraging their deep understanding of different markets and industries, their team of seasoned professionals is adept at identifying and attracting top-tier talent, both locally and internationally. Whether it's executive leadership roles, specialized technical positions, or niche skill sets, Consea Group has the insight and resources to deliver customized solutions tailored to each client's unique requirements.
Follow Consea Group to stay updated on the latest labor market trends and check out our latest open positions!
Authors:
Antonella Cerabona, CEO North America & LATAM
Enríque Pedroza, Business Development Manager MX
Read the article in Spanish:
Nearshoring: un punto de inflexión para el comercio mundial
En la intrincada danza del comercio global, la proximidad de las naciones suele desempeñar un papel crucial. En ninguna parte esto es más evidente que en la evolución de la relación entre Estados Unidos y México. El auge del Nearshoring (la práctica de reubicar los procesos de producción en países cercanos) ha desencadenado un nuevo capítulo en su interdependencia económica.
El Nearshoring ha surgido como una respuesta estratégica a las limitaciones e incertidumbres asociadas con las prácticas tradicionales de deslocalización. Mientras las empresas estadounidenses buscan optimizar sus cadenas de suministro y reducir la dependencia de centros de fabricación distantes, México ha surgido como una alternativa atractiva. La proximidad geográfica, sumada a acuerdos comerciales favorables como el T-MEC, ha posicionado a México como un destino principal para iniciativas de nearshoring.
La convergencia de la inversión asiática en México bajo el marco del T-MEC es prometedora para todos los actores involucrados.
A pesar de las difíciles relaciones con Estados Unidos en los últimos años, gracias al Nearshoring las empresas asiáticas obtienen acceso a un vasto mercado de consumo, barreras comerciales reducidas y una ventaja competitiva en las cadenas de suministro globales. Mientras tanto, México se beneficiará del aumento de la inversión extranjera directa, la transferencia de tecnología y la creación de empleo, lo que reforzará su posición como potencia manufacturera en las Américas.
El impacto del Nearshoring en la relación entre Estados Unidos y México trasciende las cifras del comercio bilateral. Cataliza el crecimiento económico en ambos lados de la frontera, estimulando la creación de empleo, el desarrollo de infraestructura y la innovación.
Al aprovechar la fuerza laboral calificada y la ubicación estratégica de México, las empresas estadounidenses obtienen una ventaja competitiva en el mercado global y al mismo tiempo contribuyen al avance socioeconómico de su vecino del sur.
Mientras México se prepara para recibir una ola de nuevas empresas y ser testigo de la expansión de las empresas existentes en 2024, las perspectivas de oportunidades laborales nunca han sido más brillantes. Con proyecciones que estiman la creación de hasta 400.000 empleos en el sector formal dentro de los primeros tres meses del año, la fuerza laboral mexicana está preparada para embarcarse en un viaje de crecimiento y prosperidad. Al adoptar la innovación, aprovechar las oportunidades y aprovechar sus talentos, las personas pueden desempeñar un papel fundamental a la hora de impulsar el crecimiento económico, fomentar la innovación y dar forma al futuro del vibrante mercado laboral de México.
En el panorama empresarial hipercompetitivo actual, el talento se ha convertido en el principal diferenciador e impulsor del éxito organizacional. Al asociarse con Consea Group, las empresas obtienen acceso a una compañia estratégicamente comprometida para ayudarlas a atraer, retener y desarrollar los mejores talentos que impulsen su negocio. Ya sea enfrentando los desafíos de la globalización, abordando las brechas de talento específicas de la industria o adaptándose a las tendencias cambiantes del mercado, Consea Group permite a sus clientes mantenerse ágiles, innovadores y por delante de la competencia.
Con oficinas establecidas en México (desde 2015) y en EE. UU. (desde 2017), Consea Group aporta una gran cantidad de conocimientos y experiencia. Aprovechando nuestro profundo conocimiento de diferentes mercados e industrias, nuestro equipo de profesionales experimentados son expertos en identificar y atraer talento de primer nivel, tanto a nivel local como internacional. Ya sean roles de liderazgo ejecutivo, puestos técnicos especializados o conjuntos de habilidades específicas, Consea Group tiene el conocimiento y los recursos para ofrecer soluciones personalizadas adaptadas a los requisitos únicos de cada cliente.
¡Siga a Consea Group para mantenerse actualizado sobre las últimas tendencias del mercado laboral y consulte nuestros últimos puestos vacantes!
Autores:
Antonella Cerabona, CEO North America & LATAM
Enríque Pedroza, Business Development Manager MX
Consea APAC: China Labor market outlook, with an eye on Asia 2024
More than a year after China’s reopening and its return to normal life, the exodus of foreign talent seems to have been partially stopped, even if many expats had already left the country between 2020 and 2022. In 2020, there were approximately 845,000 foreigners in Mainland China[1], including Chinese citizens holding foreign passports, while in 2023 the recorded number was 711,000.[2] At first glance, this number seems very encouraging, however, what might have changed is its composition. Based on reports from the different European chambers of commerce in China, the number of citizens coming from these countries has drastically reduced. As a matter of fact, according to the report issued by the European Union Chamber of Commerce, 25% of German citizens have left the country permanently, and similar numbers have also been recorded for French and Italian citizens (-20% each).[3] This drop appears to be much more drastic than the -15% recorded in 2023. If we take a closer look, this trend had already started prior the pandemic. Between 2010 and 2020, the number of American (-23%), French (-39%) and German (-22%) citizens on Chinese territory declined sharply, and so did the number of citizens from other countries such as Japan (-44%), South Korea (-51%), Singapore (-32%) and Australia (-4%). On the other hand, inflows from countries such as Myanmar (+783%), Vietnam (+119%), Laos (+590%), Cambodia (+1159%) and North Korea (+88 %) have increased exponentially, as well as for other African and South American countries.[4]
The risk, therefore, for the country is to have lost a significant number of high-skilled labor from more developed countries, and to have partially compensated for this loss with the entry of low-skilled labors from emerging countries. This theory also seems to be supported by the distribution of foreign citizens on the territory; cities such as Beijing and Shanghai recorded a sharp decline in the number of immigrants in the period between 2010-2020 (-41.5% and -21.4% respectively), while Yunnan province recorded a 700% increase.[5]
In conclusion, although precise data regarding the three-year period of 2020-2022 is still lacking, it is easy to assume that the trend that was already in place in the previous decade has been accelerated by the pandemic and the related restrictions put in place.
Moreover, the disruption brought by the pandemic also had, among other effects, a strategic change towards the Chinese market; indeed, many foreign players have decided to adopt a “China for China” approach. China, therefore, is no longer a potential hub for managing the Asia/APAC region, but rather a market with highly localized organizational structures and a scope of responsibility limited only to China Mainland or Greater China borders. This has clearly triggered a greater focus on recruiting local talent, minimizing the number of expats in the country. We, as Consea, have seen first-hand a reduction in the number of executive searches (hyperlink https://consea-group.com/head-hunting/ ) of expatriates in the area.
This new structure has led many companies to move their regional HQ, or to relocate some of the foreign decision makers to Singapore or other areas in South East Asia or Far East, depending on the industry and the business model implemented. Furthermore, many companies are evaluating other destinations in Asia for their new FDI (Foreign Direct Investment), such as Singapore (hyperlink https://consea-group.com/2023/06/14/nuova-aperto-a-singapore/ ), but also Vietnam, Thailand, Malaysia and India, particularly for the manufacturing sectors. This consideration is the result of several factors, including:
the high labor cost: disposable income per capita in 2023 amounted to 39,218 yuan, up 3% on an annual basis in nominal terms[6];
the aging of the workforce: the age of the Chinese workforce increased from 37.1 in 2017 to 38.3 in 2022[7];
other macro-economic factors such as declining population, risk of deflation or stagnation, domestic consumption and exports still low, downturn of real estate market;
and the willingness to diversify the supply chain.
FDI in the ASEAN region grew between 2020 and 2022 up to $227Bn, although 2023 saw a decline of -16%, but despite this, the number of greenfield project announcements in the region still increased by 37%. Also, India had a similar path in terms of incoming FDI and "greenfield projects".[8] For this reason, we are seeing a growing demand for foreign talent coming from these areas.
Nevertheless, numbers for China seem to be encouraging and improving for 2024. According to official data, unemployment in urban areas fell by 0.4 percentage points in 2023 to 5.2%[9], so did youth unemployment which fell to 14.9% in December 2023, after the peak of 21.3% reached in July of the same year[10]. GDP ‘s growth has returned to levels around +5%[11], and the government is planning various measures and incentives aimed at helping the economy. Among these, of particular importance for companies and foreign citizens, there are certainly the tax exemption on benefits for foreign staff, promulgated until 31 December 2027, and the "visa-free" entry guaranteed to citizens from the main Europeans countries, as well as from Malaysia and Singapore. Although not sufficient to reverse a trend that has been undergoing for several years now, they are certainly important signs of going in the right direction.
Author: Matteo Scipioni Bertoli, Head of Business Development & Delivery APAC
[1] China embraces increasing foreign residents, China Daily, 2021 https://global.chinadaily.com.cn/a/202105/12/WS609b14c5a31024ad0babd49f.html
[2] Foreigners living in China in 2023 return to 85% of 2019 levels; simplified border measures to facilitate more foreign visitors: NIA, Global Times, 2024 https://www.globaltimes.cn/page/202401/1305619.shtml
[3] European Chamber of Commerce, European Business in China Shanghai Position Paper 2023/2024.
[4] Number of foreigners in China, results of 7th national census, Expat Focus, 2022 https://mp.weixin.qq.com/s/nfm1Vzfdu0LC8mXgBggxbQ
[5] Goodbye China: What Do Fewer Foreigners Mean for Multinationals and the Chinese Economy?, Intereconomics, volume 57, 2022, number 5 https://www.intereconomics.eu/contents/year/2022/number/5/article/goodbye-china-what-do-fewer-foreigners-mean-for-multinationals-and-the-chinese-economy.html#footnote-008
[6] China's per capita disposable income grows 6.3 pct in 2023, Xinhua, The State Council The People’s Republic of China January 17, 2024 https://english.www.gov.cn/archive/statistics/202401/17/content_WS65a73d26c6d0868f4e8e32e0.html
[7] China’s Changing Labor Market – Trends and Future Outlook, China Briefing, 2023 https://www.china-briefing.com/news/chinas-labor-force-data-trends-and-future-outlook/
[8] Global FDI in 2023 was weak, with lower flows to developing countries, United Nations UNCTAD, Issue 46, 2024 https://unctad.org/system/files/official-document/diaeiainf2024d1_en.pdf
[9] China Unemployment Rate, Trading Economics https://tradingeconomics.com/china/unemployment-rate
[10]China Youth Unemployment Rate, Trading Economics https://tradingeconomics.com/china/youth-unemployment-rate
[11] National Economy Witnessed Momentum of Recovery with Solid Progress in High-quality Development in 2023 https://www.stats.gov.cn/english/PressRelease/202401/t20240117_1946605.html
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