Toronto is the least risky city for employers to recruit, employ and relocate workers, according to a new global study from Aon Consulting.
The study created a People Risk Index, measuring the risks that organizations face with recruitment, employment and relocation in 90 cities worldwide.
It looked at demographics, education, employment practices and government regulation.
Toronto came out on top, followed by New York, Singapore, London and Montreal. Vancouver was 13th on the list.
The highest risk cities were: Dhaka, Bangladesh; Phnom Penh, Cambodia; Lagos, Nigeria; Karachi, Pakistan; and Tehran, Iran.
“The new risk ratings come at an opportune time as assessing employment risk takes on heightened importance as of late, from controversy over Arizona’s strict new anti-illegal immigration law to recent strikes in China,” said Rick Payne, chief research officer of Aon Consulting’s Global Research Center, based in Singapore.
“As companies face these and other employment risks as well as take a close look at new investment opportunities in emerging markets, the ratings can help companies systematically and consistently assess the relative risks they face when hiring, employing and moving staff.”
Toronto and Montreal received positive ratings because of strong government support, health and retirement benefits, training resources, and a lack of corruption, according to the report.
“Cities with low risk typically have a government that is transparent, non-confrontational, and deal with employment issues fairly,” Payne said.
“Employers in these cities are less likely to be surprised by changes in government policies on employment, health care, and retirement. Therefore, they have fewer issues finding and retaining educated and experienced talent. These employers also have more flexibility to restructure their operations without fear of incurring significant unanticipated costs.”
But there is room for improvement, according to the study’s authors.
Toronto is not Number 1 in any single category, despite ranking first overall.
“As the report indicates, even the lowest risk cities are not perfect,” Payne said.
“For instance, the talent pool in Toronto and Montreal is small compared to New York or Los Angeles, which increases the risk of recruiting for certain types of jobs such as highly specialized financial jobs and design/visual arts jobs. Additionally, in Singapore the inflow of foreign talent helps to increase its talent pool despite its small population, low birth rate and aging workforce.”
Rapid urbanization was a key factor for the five cities that received the highest risk ratings. Low literacy rates and poor spending on education also contributed to their ranking in the People Risk Index.
