The Latest U.S. Jobs Report: A Catalyst for Increased Hiring of HR Professionals in Asia

The US economy added 243,000 jobs in January and the unemployment rate fell to 8.3 percent according to the latest jobs report released on February 3rd, 2012. Not only did this report reflect job growth at its highest rate in the US since last April, it also marked the lowest level of unemployment in three years. This positive news release boosted US financial markets and propelled investor sentiment. And, since investor sentiment in the US buoys spending and hiring, it is likely that the increase in investor sentiment will result in a further improvement in the US economy. Analysts predict that the US jobs report will have significant implications for global markets and, particularly, for economies that are closely linked to the US including those in Asia. The positive economic effect of the US jobs report should enhance the acceleration of Asian economies for three reasons.

1. US hedge funds have been tending to remain on the sidelines with significant amounts of their portfolios in cash. With positive signs in the US economy, institutional US fund managers can be expected to feel more comfortable putting their money back to work. Since Asia is currently the key region for manufacturing and development, US hedge fund managers are likely to dedicate significant amounts of their investment portfolios to companies in the region.

2. Since China and other Asian countries now dominate the world manufacturing landscape, these countries will remain dependent on the consumer demands of the US and Europe. With positive sentiment and more people back to work in the US, Americans will increasingly spend more of their earned money with a significant proportion of their purchases being for Asian imports.

3. Finally, multinational corporations with headquarters in the US will accelerate their movement into key Asian markets, particularly in China and in India. The proliferation of an Asian affluent class has already spurred MNC expansion for almost a decade. Their increased penetration into Asian territories will speed up as key decision makers in the US are reassured that the economy has improved enough to spend on growth, rather than to conserve. With the establishment of new US company offices and manufacturing sites in Asia, job growth and opportunity for Asians will thrive as US companies increasingly demand Asian workers on the ground, from the junior to senior strategic level. In particular, the demand for strategically minded senior HR talent will explode as newly setup businesses will require HR professionals to establish the structure for new employee management and development.

Asian HR nationals with polished English communication skills, as well as non-Asian HR professionals with significant experience in Asia, will become even more highly sought after, creating a war for HR talent. The senior HR professionals that are experienced in setting up new operations and working in M&A and post M&A environments will become particularly desirable to the US MNCs expanding into Asia.

So, while the recent US jobs report will affect the US economy positively, it will also be a catalyst for Asian economic growth as investment into Asian companies, demand for Asian exports, and creation of Asian jobs follow positive US investor sentiment. Again we realise how closely world economies are intertwined and how positive news in one country now often results in a global domino effect.