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:
Rental Costs Increase Across the U.S.
Tech Companies Lobby for Adult Children of H-1B Visa Holders
Metaverse Trends Examined in New Study
The Cost of Remote Employee Exclusion
Rental Costs Increase Across the U.S.
Mortgage rates are more than double what they were a year ago, as the Federal Reserve's fight against inflation has resulted in higher borrowing costs. They have, however, been volatile, with some severe drops from week to week. Renters have also been impacted by the volatile housing market. In almost any city throughout the country, rent has increased by double-digits, and there is a severe lack of inventory.
Why is this important?
Many people are choosing to continue renting and wait out the housing market's inflated prices, but now many people can't afford to relocate. According to data from real estate brokerage firm Redfin, rent costs have risen by double-digit percentages in the past year throughout the United States. Landlords have also increased their prices by raising rents on existing renters to offset the money they would have earned by charging a new tenant a higher rent.
Tech Companies Lobby for Adult Children of H-1B Visa Holders
American technology giants are concerned about the children of their overseas employees. In a letter to US Secretary of Homeland Security Alejandro Mayorkas, a group of technology firms has urged the United States government to allow visa holders' children to remain in the country past age 21. The letter-signers included tech giants like Amazon, Google, and Twitter. Under the existing immigration system, more than 200,000 high-skilled child immigrants are in danger of being deported.
Why is this important?
The children of foreign workers can apply for a green card, but the procedure is lengthy and complex. Tech companies are concerned because many H-1B visa holders work in tech. These children have spent their entire lives in America, and the reality that they can't stay on their dependent visas causes tension, worry, and despair in families. It also makes parents think twice about living and working in the United States, which is critical for technology firms that employ the bulk of H-1B workers.
Walmart's current overstock problem can be tied back to the inflation crisis when the lockdown phase of the pandemic prompted companies to kick production into overdrive. Supply chains got further confused when the inflation crisis hit and shoppers were buying only the necessities, leaving the pandemic's favorites to pile up in stores. To make matters worse, some inventory systems automatically order supplies, even if they aren't needed. — Mashed
The IMF now expects the world economy to grow 3.2% this year, before slowing further to a 2.9% GDP rate in 2023. The revisions mark a downgrade of 0.4 and 0.7 percentage points, respectively, from its April projections. —CNBC
The Federal Reserve is expected to hike interest rates by three-quarters of a percentage point, in the latest push to rein in inflation that remains at 40-year highs, is threatening the overall economy, and is weighing on families and businesses nationwide. —The Washington Post
Not only has the Pandemic Housing Boom—which pushed U.S. home prices up 42% over the past two years—fizzled out, but we've seen it replaced by a "housing recession." Across the nation, home sales are plummeting and inventory levels are spiking. —Fortune
Metaverse Trends Examined in New Study
The Organization for Economic Development Cooperation and Development, an intergovernmental organization with 38 member countries, announced this week that an international tax proposal, that was agreed upon last October will not be implemented at least until 2024.
Why is this important?
The first trend that the report identified is that brands are arriving early. Pouring money into the metaverse right now has little costs and low risks for mainstream companies, but there is a vast potential for a massive return on investment. Another trend identified by Newzoo's report is that NFTs have a promising future in the metaverse. The potential of NFTs in the metaverse is contingent on how far they develop beyond financial speculation vehicles.
The business cost of exclusion is compounded by the cost to individuals and society as a whole. Current geopolitical and socioeconomic issues highlight the acceleration with which inclusion initiatives are eroding. Individuals increasingly fall prey to exclusionary practices regardless of race, gender, sexual orientation, socioeconomic status, or disability. This severely affects all individuals' quality of life and social equity. The business case imperative should be for our actions to validate that all people have the same opportunities and rights, no matter where they are or where they are from.
Why is this important?
A real challenge exists in remote work environments where marginalized groups miss out on opportunities to interact with senior leaders - if they are not in the office, it is challenging for people to get to know them and their work. To combat these challenges, employers must be intentional about creating an inclusive environment for all employees, regardless of location.
A housing recession is the first step to a Fed-induced recession. Read more viaFortune.
Fonoa raises $60M to automate tax compliance for global companies like Uber and Zoom. Read more viaTech Crunch.
Working from home means it’s time to adjust your company’s diversity and equity approach. Read more viaFast Company.
A comprehensive compensation strategy is an indispensable tool. Read more viaBenefits Pro.
The future of remote work, according to 6 experts. Read more viaVox.
Why most overseas visitors to Japan are on business trips. Read more viaSouth China Morning Post.
Snarled air travel is prompting changes for America’s business road warriors. Read more viaThe Wall Street Journal.
On Tap
2022 Global Workforce Symposium, October 25, 2022 – October 28, 2022 — GWS2022 will be the largest mobility industry gathering attracting over 1,000 attendees seeking connections and expert knowledge focused on domestic and international moves, immigration policies, tax issues, cutting-edge technology trends, hot topics and much more. 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.
Worldwide ERC® Member-Only LinkedIn® Groups: Benchmark with the best in the industry with three of our member-only LinkedIn® groups:Young Professionals Member-Only Forum, Corporate/HR Benchmarking Member-Only Forum, and ourMember-Only Open Forum. This is your private, member-only community to exchange questions, answers, industry announcements, and sharing ideas with other relocation professionals! Click here to join to learn more about each Forum group.
New Client and Transferee Portal — Morreale Real Estate Services, Inc.recently announced the launch of the updated MSite for clients, transferees, and partners. The MSite portal is a simple, easy-to-use platform that will make the process of signing documents and returning them more advanced.
For many retirees, whether for adventure, change of scenery, or reduction in living expenses, moving to another country is a goal. It's well-known that moving outside the U.S. can help reduce living costs — particularly if the retiree is leaving a large city. If the goal is to reduce expenses, most retirees can accomplish that and live quite well in a variety of countries.
Where to retire cheaply abroad. These are some of the countries that offer retirees an opportunity to enjoy a comfortable lifestyle and lower cost of living.
Mexico — In San Miguel de Allende, a charming city in Mexico's interior popular with expats, the cost of living is 57% lower than in New York, and rent is 76% lower.
Portugal — The cost of living is about 37% lower than in the U.S., and housing is around 54% more affordable.
Vietnam — In Ho Chi Minh City (formerly Saigon), home to the largest expat community according to International Living, the cost of living is 62% lower than in New York, and housing is about 83% lower.
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