Welcome to Mobility Minute, a newsletter published every Friday byWorldwide ERC®for the benefit of members and the global mobility and relocation industry. Here’s a quick glimpse of what you’ll find in this week’s issue:
Europe’s Energy Crisis Might Impact Mobility Volume and Costs
What You Need to Know About the DOL Contractor Rule
G20 Leaders Discuss Issues Impacting Mobility
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Europe’s Energy Crisis Might Impact Mobility Volume and Costs
European residents are bracing for their first winter without Russian natural gas to rely on for energy. Russian President Vladimir Putin cut off natural gas imports to European countries earlier this year, retaliating against economic sanctions placed on Russia after its unprovoked invasion of Ukraine in February. This crisis may impact the volume of relocations and business travel, as well as remote work and housing policies, as companies restructure operations and governments impose mandates.
Why is this important?
With potential energy cuts and curfews hitting hotels, air travel, and electricity, we expect that business travel both to and within Europe could decline. Higher utility expenses may impact corporate relocation programs and housing values, and remote or flexible work opportunities may increase as companies seek to reduce energy-related expenses for commercial and office real estate.
What You Need to Know About the DOL Contractor Rule
On 13 October 2022, the U.S. Department of Labor (DOL) issued a notice that proposed changes to how workers are classified as either employees or independent contractors. The rule is designed to decrease the chance that employees will be wrongly considered independent contractors. Changes in policy may result in negative impacts for a variety of industries, including retail and manufacturing. The gig economy, which relies heavily on independent contractors, has been the sector that’s received the most focus amid these changes.
Why is this important?
Limiting independent contracting would have an especially large effect on trucking companies. If trucking companies increase prices or reduce services, it could intensify the pressure on supply chains that have already been weakened by the COVID-19 pandemic. If independent contracting is limited, some companies might reduce their numbers of workers or eliminate certain positions entirely. This could result in more expensive moves and longer wait times for household goods.
The G20 Summit is the meeting of 19 nations and the European Union and, collectively, the group is responsible for roughly 85% of global GDP, 75% of global trade, and approximately two-thirds of the world’s population. A number of topics that came up during this year’s G20 Summit, including improving access to digital technology, women’s empowerment in the labor market, and climate change, are pertinent to the global mobility industry and could affect industry standards in the coming years.
Why is this important?
The summit focused on the effect of digitalization on the international labor markets. In a study of 20 countries, Hiring Lab found that remote work opportunities have tripled since the beginning of the pandemic, increasing from 2% to 7.5% in September 2021. In a press release from the U.N. Secretary General António Guterres, he lauded efforts to help developed countries via increased digital technology. “Digital technology can give an unprecedented boost to sustainable development, particularly for the poorest countries.”
Reminder: The Purchase of Residential Property by Non-Canadians Act prohibits non-Canadians from purchasing, directly or indirectly, any residential property in Canada for two years, starting 1 January 2023. Teaming up with our Canadian counterparts to insulate RMCs from the unintended consequences of a public policy meant to address the rising cost of living in Canada is just the latest example of how Worldwide ERC works with partners around the world to advocate for public policies that support the global mobility industry.
Global Economic Snapshot
Americans will have two more years to obtain a Real ID driver’s license or identification card, the Department of Homeland Security announced Monday. U.S. air travelers will be required to present the Real ID credential to board a domestic flight beginning 7 May 2025. Before this announcement, implementation had been scheduled to take effect next May. — The Washington Post
Goldman Sachs Group Inc. economists predict that global growth will average just under 3% a year over the next decade, down from 3.6% in the decade before the financial crisis, and will be on a gradually declining path afterward, reflecting a slowing of labor force growth. — Bloomberg
The Biden administration sent a proposal to the European Union suggesting the creation of an international consortium that would promote trade in metals produced with fewer carbon emissions while imposing tariffs on steel and aluminum from China and elsewhere. — The New York Times
Now that travel around the globe has ramped back up, the industry is taking stock of just how much the pandemic changed consumer behavior and attitudes. Expedia Group’s Traveler Value Index 2023 research reveals the gaps between what people want from travel and what the industry is currently delivering.
The Number of People Traveling Is on the Rise
Earlier this year, a majority said they weren’t planning any business travel. Currently, one in three people are planning on doing so—and 85% are looking forward to their next work trip. The industry, particularly hotel professionals, are similarly optimistic about business travel: 70% say they expect it to return within two years to pre-pandemic levels.
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