- \n
- Pandemic shakes up Mercer\u2019s 2021 Cost of Living City ranking, as countries continue to struggle with economic, political and health fall out from COVID-19<\/i><\/li>\n<\/ul>\n
- \n
- Ashgabat, <\/i>Turkmenistantops the list as most expensive city, bumping Hong Kong to #2, while Beirut rises 42 positions to third most expensive city<\/i><\/li>\n<\/ul>\n
\n\u00a0\n<\/p>\n
NEW YORK–(BUSINESS WIRE<\/a>)–
\nCOVID-19 continues to cause unparalleled disruption to international mobility, prompting companies to re-evaluate how they will manage a mobile workforce in a post-pandemic world. Cost of living data, mobility research conducted by Mercer and the learnings from Mercer\u2019s work with clients demonstrates that after several years of organizations\u2019 efforts to modernize mobility strategies, organizations are beginning to implement alternate forms of international assignments and cross-border working arrangements to sustain their overseas operations and workforces.\n<\/p>\n\n\u201cCost of living has always been a factor for international mobility planning, but the pandemic has added a whole new layer of complexity, as well as long-term implications related to health and safety of employees, remote working and flexibility policies, among other considerations,\u201d said Ilya Bonic, Career President and Head of Mercer Strategy. \u201cAs organizations rethink their talent and mobility strategies, accurate and transparent data is essential to compensate employees fairly for all types of assignments.\u201d\n<\/p>\n
\nMobility is evolving from traditional long-term assignments \u2013 i.e., relocating an employee for a few years then repatriating them to their home location \u2013 to other kinds of mobility moves such as short-term assignees, international foreign hires, permanent transferees, commuters, international remote workers and international freelancers.\n<\/p>\n
\nMercer\u2019s 2020 Worldwide Survey of International Assignment Policies and Practices<\/a> confirmed that many of the companies surveyed are offering more flexible options to accommodate diverse personal circumstances of the assignees. Another 2020\/2021 Mercer survey found that over 50% of employers surveyed expected changes in terms of the number of one-way transfers, talent development, short-term and commuter assignments in their organizations due to the pandemic.1<\/sup><\/p>\n
\nMercer\u2019s latest Cost of Living Survey helps employers understand the importance of monitoring currency fluctuations and assessing the inflationary and deflationary pressures on goods, services and accommodation in all operating locations. The data also helps employers determine and maintain compensation packages for employees on international assignments and when working abroad. Additionally, the cost of living in a location can have a significant impact on its attractiveness as a destination for talent, and influences site selection decisions for organizations expanding and transforming their geographic footprint.\n<\/p>\n
Mercer\u2019s 2021 Cost of Living City Ranking<\/b><\/a><\/p>\n
\nMercer\u2019s 2021 Cost of Living City Ranking found Ashgabat the most expensive city for international employees, pushing Hong Kong to second place. Beirut ranked third, climbing 42 positions up the ranking as a result of a severe and extensive economic depression due to escalation of several crises \u2014 the country\u2019s largest financial crisis, COVID-19 and the Port of Beirut explosion in 2020. Tokyo and Zurich each dropped one spot from third and fourth respectively to fourth and fifth positions, and Shanghai ranked sixth, up one place from last year. Singapore moved from fifth place to seventh.2<\/sup><\/p>\n
\nOther cities appearing in the top 10 of Mercer\u2019s most costly cities for international employees are Geneva (8), Beijing (9), and Bern (10). The world\u2019s least expensive cities for international employees, according to Mercer\u2019s survey, are Tbilisi (207), Lusaka (208), and Bishkek, which ranked as the least costly city at 209.\n<\/p>\n
The Americas<\/b><\/p>\n
\nCities in the US have dropped in this year\u2019s ranking mostly due to currency fluctuations between March 2020 and March 2021, despite the rising inflation of goods and services in the country. New York (14) ranked as the most expensive city in the US, though it dropped eight positions since last year, followed by Los Angeles (20), San Francisco (25), Honolulu (43) and Chicago (45). Winston Salem (151) remains the least expensive US city surveyed for international employees. San Juan (89) dropped 23 positions due to deflation in the second part of 2020 and a very low inflation in the beginning of 2021 hence affecting the position in the ranking.\n<\/p>\n
\nThe Canadian dollar has appreciated in value in relation to the USD, triggering jumps in this year\u2019s ranking. Vancouver (93) is the most expensive Canadian city in the ranking, followed by Toronto (98) and Montreal (129). Ranking 156, Ottawa is the least expensive city in Canada.\n<\/p>\n
\nIn South America, Port of Spain (91) ranked as the most expensive city, followed by Port-au-Prince (92) and Pointe-\u00e0-Pitre (107). Brasilia (205) is the least expensive city in South America.\n<\/p>\n
Europe, the Middle East, and Africa<\/b><\/p>\n
\nThree European cities are among the top 10 list of most expensive locations. Number five in the global ranking, Zurich remains the most costly European city, followed by Geneva (8) and Bern (10).\n<\/p>\n
\nThe strengthening of local currency resulted in several European cities climbing in the ranking, with Paris climbing to 33. Local currency in the United Kingdom remains strong with London (18), Birmingham (121) jumping one and eight places, respectively.\n<\/p>\n
\nThe United Arab Emirates continued to diversify its economy, which reduced the impact of the oil industry on GDP. With this ongoing process, there has been negative price movement in both Dubai (42) and Abu Dhabi (56). Beirut is the costliest city in the Middle East for international employees, jumping 42 positions to third in the global ranking. N\u2019Djamena (13), Lagos (19) and Libreville (20) are first, second and third costliest cities in Africa for international employees. Lusaka ranked 208 is the least costly city in Africa.\n<\/p>\n
Asia Pacific<\/b><\/p>\n
\nMore than half of the top 10 most expensive cities are located in Asia. Ashgabat climbed one position in this year\u2019s ranking, making it the costliest city for international employees, both in Asia and globally. Hong Kong (2), Tokyo (4), Shanghai (6), Singapore (7) and Beijing (9) followed suit. Mumbai (78) is India\u2019s most expensive city but dropped 18 places in this year\u2019s ranking due to a relatively weak Indian rupee in comparison with other cities in the ranking.\n<\/p>\n
\nAustralian cities have climbed in this year\u2019s ranking as the local currency significantly gained value against the USD. Sydney (31), Australia\u2019s most expensive ranked city for international employees, experienced a climb of 35 places, followed by Melbourne (59) with a climb of 40 places.\n<\/p>\n
\nDownload the full 2021 Cost of Living ranking here.<\/a><\/p>\n
Notes for editors<\/b><\/p>\n
\nMercer’s widely recognized ranking is one of the world\u2019s most comprehensive, and is designed to help multinational companies and governments determine compensation strategies for their expatriate employees. New York City is used as the base city for all comparisons and currency movements are measured against the US dollar. The survey includes over 400 cities throughout the world; this year\u2019s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment. The data collected provides all of the key elements employers need to design efficient and transparent compensation packages for international assignees. Learn more here<\/a>.\n<\/p>\n
\nThe figures for Mercer\u2019s cost of living and rental accommodation cost comparisons are derived from a survey conducted in March 2021. Exchange rates from that time and Mercer\u2019s international basket of goods and services from its Cost of Living Survey have been used as base measurements.\n<\/p>\n
\nGovernments and major companies use data from this survey to protect the purchasing power of their employees when transferred abroad; rental accommodation costs data is used to assess local expatriate housing allowances. The choice of cities surveyed is based on demand for data from Mercer\u2019s clients.\n<\/p>\n
About Mercer<\/b><\/p>\n
Mercer<\/a> believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer\u2019s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world\u2019s leading professional services firm in the areas of risk, strategy and people, with 76,000 colleagues and annual revenue of $17 billion. Through its market-leading businesses including Marsh<\/a>, Guy Carpenter<\/a> and Oliver Wyman<\/a>, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com<\/a>. Follow Mercer on Twitter @Mercer<\/a>.\n<\/p>\n
1<\/sup> Mercer\u2019s Alternative International Assignments survey<\/a><\/p>\n
2<\/sup> Mercer\u2019s data was collected in March 2021; price variances in many locations were not significant at the time of the data gathering due to the pandemic as various measures were adopted by governments worldwide, such as refraining from collecting value-added tax for a period of time.\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210622005861\/en\/<\/a><\/span><\/p>\n
- Ashgabat, <\/i>Turkmenistantops the list as most expensive city, bumping Hong Kong to #2, while Beirut rises 42 positions to third most expensive city<\/i><\/li>\n<\/ul>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20210622005861\/en\/1053244\/3\/2021_logo.jpg\"){kind=logo}
<\/td>\n<\/tr>\n