@Risk

For the first time since Grant Thornton began researching employment issues in its International Business Report (IBR) back in 2003, the number of businesses cutting headcount has exceeded those increasing it. In fact, Grant Thornton’s new data shows a global balance of -8 percent compared to +21 percent in 2009 – that’s a dramatic drop of 29 percentage points.

The survey, which polled more than 7,400 privately held businesses (PHBs) across 36 economies, also showed that: (more…)

There’s a growing labor shortage in China, and analysts aren’t exactly sure why.

According to The Wall Street Journal’s blog “China Real Time Report:”

Various domestic media reports put the labor supply gap at around a million people in Guangzhou and neighboring cities such as Dongguan, legendary centers of China’s export boom in the past three decades. Numerous assembly lines and construction sites are sitting idle while anxious employers have raised salaries by more than 30% but still can’t attract enough applicants.

Shen Hong, the author of the post, suggests that at least part of the problem may stem from the fact that new-generation migrant workers aren’t interested in tough basic jobs like construction any more.  The Chinese government has reformed policies and modernized farming to such an extent that rural jobs now compete favorably with work in the city. In addition, second-tier inland cities are experiencing economic booms of their own, and workers may prefer these alternative locations simply because they’re closer to home. Lastly, China’s improved standard of living, in general, means that young workers are less apt to accept the hardships of working in the city, Hong says. (more…)

Yesterday, the Department of Defense released its Quadrennial Defense Review, and for the first time, this document –prepared periodically by the Pentagon to update Congress –addressed the threat of global warming, stating that climate change will accelerate instability and conflict around the world.

Specifically, the QDR identifies “crafting a strategic approach to climate and energy” as a key issue requiring attention:

Climate change and energy will play significant roles in the future security environment. The Department is developing policies and plans to manage the effects of climate change on its operating environment, missions, and facilities. The Department already performs environmental stewardship at hundreds of DoD installations throughout the United States, working to meet resource efficiency and sustainability goals. We must continue incorporating geostrategic and operational energy considerations into force planning, requirements development, and acquisition processes. (more…)

Aon Risk Services, the global risk management and insurance brokerage business of Aon Corporation has launched its 17th annual Political Risk Map, and it shows that political and financial instability remain a feature of the business landscape.

There are 18 downgrades in this year’s map, driven mostly by rising risk levels in 2009, which in turn led to a significant volume of credit and political risk claims in international insurance markets.

The 18 countries with worsening conditions are: Algeria, Argentina, El Salvador, Equatorial Guinea, Ghana, Honduras, Kazakhstan, Latvia, Madagascar, Mauritania, Philippines, Puerto Rico, Seychelles, Sudan, United Arab Emirates, Ukraine, Venezuela and Yemen.

“For instance, non-payment of sovereign and sub-sovereign debt obligations is a major issue for underwriters insuring risks in Ghana, and underwriters continue to experience a multitude of claims stemming from payment defaults by private sector banks in Ukraine,” explains Miles Johnstone, director of Aon’s Political Risk team. (more…)

For the second straight quarter, more than one-third of North American manufacturers polled in MFG.com’s latest MFGWatch survey say they’ve experienced a significant supply chain disruption in the past three months.

The survey — which drew responses from 334 manufacturers of parts and services, purchasing professionals and engineers –was conducted in early January 2010.

Specifically, 35 percent of purchasing professionals responding to the survey said they had experienced a significant supply chain disruption and had to seek alternative sources to recover. Likewise, 34 percent of supply-side manufacturers reported that they had received queries from buyers experiencing supply chain disruptions within the past quarter.

In addition, the new MFGWatch survey reveals that expectations for excess capacity, employment growth and supplier reductions expressed by poll respondents a few months ago have not fully materialized. (more…)