A recent Economist article, “Go east, young moneyman,” describes how more business students and recent business school graduates are heading to growth markets, particularly to places like Asia and Latin America, for jobs in the field of finance.
According to the article, “Talent and transactions are migrating from London and New York to faster-growing markets, particularly in Asia. Though some headhunters predict indigestion in Hong Kong, Singapore and Shanghai this year after an overzealous bout of hiring, most are bullish on the region’s long-term prospects.”
This eastward trend has grown significantly since the economic crisis of the last few years. In 2009, only 8% of financial firms’ external hires in Asia had transferred from America or Britain, whereas in 2010, that percentage was up to 31%. You can see from the table below how Asia has climbed the ranks of the most popular destinations for Americans and British applicants pursuing careers in finance.
In recent years banks have encouraged this trend by hiring Asians and Latin Americans to work in their New York or London offices for a year before then transferring them to positions in Asia or Latin America. American or British businesspeople in finance who have family ties to these other countries or who have strong language skills are also likely to be sent abroad for work. These positions in emerging markets are considered to have greater job stability than those positions in mature markets.
The tax rates are also better in Asia than they are in Britain, another attractive feature of working abroad. (U.S. citizens, however, must pay American taxes on income no matter where they live, so this is less of a factor.)
Another draw to Asia is the low cost of living.
Demand is up for positions in Asia, so it’s not uncommon for recruiters to throw large cash bonuses into the job offer.
For more information on the growing appeal of the Asian market to the young businessperson, please see our blog post, “Asian Business Schools Team Up to Strengthen Appeal to Westerners.”
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