By the end of 2022, unemployment rates across the APAC region ranged from just two per cent in Singapore, to a still modest 5.86 per cent in Indonesia, with Australia and New Zealand holding steady at 3.5 per cent and 3.4 per cent respectively. 

In practical terms, this means the insurance talent shortage is far from over. “The Australia and New Zealand job markets have been characterised by three key trends over the past 12 months: record-breaking job ad numbers, lowest-ever applications per job ad and the tail-end of lockdowns impacting the labour market,” says Ben Whitfield, talent acquisition leader at Marsh Pacific. “It essentially means that there are more roles advertised than there are available candidates looking for work.”

Comings and goings 

Cameron Watson, head of strategy at Fuse Recruitment, says the restrictions on travel — and lower immigration levels — have contributed to the tighter labour market in the region. Looking at Australia, Watson says “over the last two years, lockdowns and restrictions have taken more than 600,000 people out of the labour market: a massive driver of the challenge we have now”.

New Zealand immigration has also been slow to recover. Net migration only moved into positive figures in September 2022, with a net gain of just 4559 people. However, Kiwibank is forecasting greater growth in 2023, anticipating a net inflow of 30,000 people. 

“New Zealand is a great lifestyle choice and I think the government and lots of organisations have done a really great job of selling New Zealand to the world,” says Gabrielle Cook, national people and culture manager at Gallagher Bassett New Zealand. “Plus, we are looking forward to Kiwis coming home and bringing their skills with them.”

Certainly, a less pressurised labour force can’t come soon enough. People already working in the insurance industry have often had to cover the workloads of ‘missing’ staff, impacting their own wellbeing and job satisfaction. Plus, a lack of resources over the longer term can limit business growth.  “Our last Hays Salary Guide shows that an insufficient supply of skilled professionals is hindering growth and operations for 80 per cent of Australian and 57 per cent of New Zealand insurance employers,” observes Eliza Kirkby, regional director of Hays in Australia and New Zealand.

Market perceptions

In Asia, perceptions of some markets can make attracting talent — particularly immigrant talent — more difficult. 

“For example, the political unrest Hong Kong has seen over the last few years, tough COVID restrictions, increasing Chinese influence and the high cost of living have meant an exodus of talent from the country,” says Ben Ewbank, director of Michael Page Indonesia. “Singapore also faces the high-cost-of-living challenge, with many expats feeling today that this now outweighs the traditional benefits that Singapore is renowned for offering — cleanliness, efficiency and security.” 

Ewbank says countries such as Indonesia and the Philippines still have a reputation for being unsafe, based on historical unrest, weaker currencies, political instability, and poor security and healthcare services. 

“All of this combined discourages expat workers and makes talent attraction harder, even though in more recent times all these aspects have improved tremendously,” he says.

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