Welcome to Mobility Minute, a newsletter published every Friday by Worldwide ERC for the benefit of members and the global mobility and relocation industry as a whole. If you get Mobility Minute weekly, please forward this issue to colleagues in the Workforce Mobility industry. If this was shared with you, click here to get your own free subscription and access the archives.
What's happening?
Here's a quick glimpse of what you'll find in this week's Mobility Minute:
How the Global Mobility Industry Impacts Policy Decisions
Mortgage Rates and Inflation Cause Housing Market Slump
Using a Relocation Provider to Avoid Moving Scams and Cybersecurity Risks
From Environmental Sustainability to Privacy, Our Industry Is Making an Impact in Washington
As part of our ongoing work to ensure the global mobility industry is part of the solution in the global fight against climate change, Worldwide ERC last week submitted comments in response to the Securities and Exchange Commission (SEC) proposed rule, "The Enhancement and Standardization of Climate-Related Disclosures for Investors."
Why is this important?
We made the regulators aware of our recent survey — The Road to Sustainability: What Companies Are Doing and Why — and explained how its findings demonstrate that our members are making concerted efforts to employ sustainable business practices while recognizing the impact on small and medium-sized businesses. Sustainability is a never-ending journey. Learn more about our Forging the Future on Sustainability initiative here.
What's next?
Yesterday's U.S. Supreme Court ruling against the EPA's ability to regulate emissions has substantial implications limiting the power of all federal agencies. The "major questions" doctrine applied in the SCOTUS decision requires explicit congressional authority for any regulations that have broad importance or social impact. This rule provides substantial support to the arguments that the SEC had likewise exceeded its authority by requiring ESG disclosure. Read more on Worldwide ERC.
Mortgage Rates, Inflation Cause Housing Market Slump
After more than a year of rapid growth, eye-popping home valuations, and growing real estate transactions, the housing market appears to be leveling off. Since the start of this year, mortgage rates and inflation have been on a steady climb, roiling the housing market and stock market. Two prominent real estate firms let hundreds of employees go due to anticipated slowing home sales and rising interest rates. Stocks of real estate firms such as Redfin and Compass have recently tumbled. Both stocks fell by 3.86% and 6.19%, respectively, as both companies announced layoffs amid concerns of a U.S. housing market bust and rising inflation.
Why is this important?
Some relief may be on the way for frustrated homebuyers who have been waiting for months or even years for a suitable property to come on the market and have been unable to get their hands on one due to the high competition. The housing market will be more stable in 2022, according to Realtor.com's new 2022 housing forecast, which suggests that the waters may be calmer as demand decreases and supply increases. Although buyer demand is anticipated to weaken during the summer, most markets will still favor sellers. Read more on Worldwide ERC.
Global Economic Snapshot
A "crypto winter" basically means that prices have dropped a long way and then stayed low for weeks or months. The signs are everywhere – the failure of the TerraUSD crypto project this May sent an icy blast through the market, then the cryptocurrency lending platform Celsius Network halted withdrawals, prompting a sell-off that pushed Bitcoin to a 17-month low. — The World Economic Forum
Federal Reserve Chairman Jerome Powell said the low inflation era after the 2008 financial crisis is over and that new economic forces have led to higher inflation, creating challenges for the world's central banks. — The Hill
Consumer price inflation in the Eurozone hit a fresh record high of 8.1% in May. Central bank leaders and economists around the world have acknowledged that the aggressive tightening that may be necessary to rein in inflation could risk tipping economies into recession, with growth already slowing due to a confluence of global factors. — CNBC
U.S. crude inventories fell last week even as production hit its highest level since April 2020. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years. Uncertainty in global oil and gas markets could stay for some time to come as spare capacity is very low while demand is still recovering. — Reuters
Using a Relocation Provider to Avoid Moving Scams and Cybersecurity Risks
More than $730,000 was lost in moving scams that were reported to the Better Business Bureau in 2021, a 216% increase over the year prior. But it is estimated that fewer than 10% of victims ever report fraud to the BBB or law enforcement. Moving scams take many forms. Scammers may request a deposit from movers but either never show up to provide the service or request a higher price than initially quoted. A fraudulent moving company may also pick up your items but refuse to deliver them unless they are paid a significant amount of money not disclosed in the initial quote. This has been termed a "hostage load," and it's a phenomenon that's been gaining steam within the lucrative world of moving scams.
Why is this important?
Partnering with an established, trusted corporate moving partner can help alleviate concerns about scams and security risks by ensuring that relocating employees are cared for by qualified professionals throughout the moving process. If your company doesn't have a corporate moving partner, employees who are in the relocation process are much more vulnerable to falling prey to these risks.
The link between sustainable business practices and employee well-being. Read more via Fast Company.
How immigration plays a role in worker shortage and inflation. Read more via The National Law Review.
Employee mobility is the best way for companies to build their talent pool. Read more via McKinsey Global Institute.
Startup raises $90M to build AI-powered internal jobs marketplaces. Read more via Tech Crunch.
On Tap
2022 Global Workforce Symposium, October 25, 2022 – October 28, 2022 — We're living in a time of great transformation. The global pandemic and the advance in technology is changing how humans live, move, and work. What do these changes mean for the workforce mobility industry? Join us this fall as we build the game plan for how mobility responds. Click here to learn more about the 2022 Global Workforce Symposium.
A new survey from Mercer — the human resources consulting firm — ranks the most expensive global cities by cost of living, showing that inflation and even the war in Ukraine are impacting the costs employers must consider for relocation.
Want to lower your cost of living amid high inflation and the ability to work remotely? Among all 227 global cities ranked in Mercer's new list Ankara, Tukey ranked as the least expensive city globally for employees on international assignments. The ranking compares the prices of 200 items such as housing, food, and household goods in more than 400 global cities to help employers design compensation packages.
Here are the ten most expensive cities for expatriates:
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