Vienna takes the top spot globally, Baghdad ranks lowest
Vienna has the world’s best quality of living, according to the
Mercer 2015 Quality of Living rankings. Overall, European cities
dominate the top of the ranking along with major cities in
Australia and New Zealand. Zurich, Auckland, and Munich are in
second, third, and fourth places respectively. In fifth place,
Vancouver is the highest-ranking city in North America and the
region’s only city in the top 10. Singapore (26) is the
highest-ranking Asian city, whereas Dubai (74) ranks first across
the Middle East and Africa. Montevideo in Uruguay (78) takes the
top spot for South America. In the US, San Francisco (27) is the
highest ranking city, followed by Boston (34), Honolulu (36) and
Chicago (43). New York City and Seattle rank 44.
Mercer conducts its Quality of Living survey annually to help
multinational companies and other employers compensate employees
fairly when placing them on international assignments. Employee
incentives include a quality-of-living allowance and a mobility
premium*. Mercer’s Quality of Living Reports provide valuable
information and hardship premium recommendations for over 440
cities throughout the world; the ranking covers 230 of these
cities.
“Taking a short- or long-term work assignment in a new country
is both an exciting and challenging experience for employees and
their families,” said Slagin Parakatil, Principal at Mercer.
“Cultures, societies, and comparatively different climates, as well
as political instability, high crime rates, and poor infrastructure
can be difficult to navigate and settle down in for employees and
their families. Employers need to assess whether their staff and
families will encounter any drop in quality of living when
relocating and ensure they are fairly compensated for it.”
Mr. Parakatil added: “As with last year’s survey, we continue to
recognise emerging cities that are increasingly becoming
competitors to traditional business and finance centres. These so
called ‘second-tier emerging cites’ are investing, particularly in
infrastructure to improve their quality-of-living standards and
ultimately attract more foreign companies.”
Americas
In North America, Canada and the United States continue to offer
a high standard of living. Vancouver (5) tops the list for this
region, followed by fellow Canadian cities Toronto (15) and Ottawa
(16), whereas San Francisco (27), Boston (34), and Honolulu (36)
are the highest-ranking US cities. Mexico’s highest ranking city is
Monterrey (109), while Mexico City is ranked 126th. The
lowest-ranking cities in the North American region are Havana (193)
and Port-au-Prince (228). Steve Nurney, Partner and Mercer’s North
America Global Mobility business leader said, “Quality of living
remained high in North American cities overall due to the range of
consumer goods and services that are available.”
In South America the quality of living varies; Montevideo (78),
Buenos Aires (91), and Santiago (93) are the highest-ranked cities,
whereas La Paz (156) and Caracas (179) rank lowest. “Economic woes
and high levels of crime continue to remain a major problem in many
of the region’s cities,” said Mr. Nurney. In Brazil, Mercer has
identified Manaus as an emerging city – it is ranked 127th. The
city is already a thriving industrial centre and has a free
economic zone – its good supply of consumer goods and relatively
advanced infrastructure partially counteract the impact of Manaus’
lack of international schooling options for expatriates and remote
location.
Europe
Despite concerns about economic growth, the cities of Western
Europe continue to offer a stable environment for employees and
employers. Vienna (1) is followed by Zurich (2), Munich (4),
Düsseldorf (6), and Frankfurt (7). With Geneva and Copenhagen in
8th and 9th places, respectively, Western European cities take
seven places in the top 10. The lowest-ranking cities in Western
Europe are Belfast (63) and Athens (85). Cities in Central and
Eastern Europe have a wider range of quality-of-living standards.
The highest-ranking cities are Prague (68), Budapest, and Ljubljana
(both ranked 75th). Emerging city Wroclaw (100), Poland, has a
thriving cultural and social environment and good availability of
consumer goods. The region’s lower-ranking cities are Kiev (176),
Tirana (180), and Minsk (189), with Kiev experiencing a
considerable drop in the rankings following political instability
and violence in Ukraine overall.
In the UK, London (40) is the highest-ranking city, followed by
Birmingham (52), Glasgow (55), Aberdeen (57), and Belfast (63). “UK
cities overall enjoy high standards of quality of living and remain
stable and attractive locations for businesses,” said Ellyn
Karetnick, Principal at Mercer. “Security has been tightened in
many major European cities following the terrorist attacks in Paris
and Copenhagen and Mercer is closely monitoring any potential
impact on the living standard of the expatriates and their families
in these locations.”
Asia-Pacific
Asia is the region with the largest range in quality-of-living
standards, with the highest-ranking city, Singapore, in 25th place
and the lowest-ranking, Dushanbe, Tajikistan, in 214th place.
Topping the ranking across East Asian cities is Tokyo in 44th
place; Other key cities in this part of the region include Hong
Kong (70), Seoul (72), Taipei (83), Shanghai (101), and Beijing
(118). Notable emerging cities in this part of Asia include Cheonan
(98), South Korea, and Taichung (99) in Taiwan. Chinese cities
Xi’an and Chongqing (both ranked 142nd) are also emerging as
business destinations. Their main challenges to improving
quality-of-living standards are clean water provision and air
pollution. However, advances in the telecommunications and consumer
sectors have had some positive offsetting effects on their
ranking.
Behind Singapore, the second highest-ranking city in Southeast
Asia is Kuala Lumpur (84); other major cities here include Bangkok
(117), Manila (136), and Jakarta (140). In South Asia, Colombo
(132), ranks highest and is followed by emerging Indian cities
Hyderabad (138) and Pune (145). Both cities rank higher for quality
of living than the country’s more traditional business centres,
Mumbai (152) and New Delhi (154). Considerable population increases
in Mumbai and New Delhi in recent decades have increased existing
problems, including access to clean water, air pollution, and
traffic congestion.
In the Pacific, New Zealand and Australian cities are some of
the highest-ranked cities globally, with Auckland in 3rd, Sydney in
10th, Wellington in 12th, and Melbourne in 16th.
Middle East and Africa
In 74th place, Dubai ranks highest for quality of living across
the Middle East and Africa region. It is followed by Abu Dhabi
(77), also in the UAE, and Port Louis (82), Mauritius. In South
Africa, Durban (85) is an emerging city and ranks higher than the
country’s traditional business centres, Cape Town (91) and
Johannesburg (94). Durban’s higher ranking is mainly due to its
high-quality housing, plentiful recreational offerings and good
consumer goods availability. However, the city’s crime problems
keep it from reaching the top 50.
Ranking 230th, Baghdad is the lowest-ranking city in the region
and on the overall list.
About Mercer
Mercer is a global leader in talent, health, retirement, and
investments. Mercer helps clients around the world advance the
health, wealth, and performance of their most vital asset – their
people. Mercer’s more than 20,000 employees are based in 42
countries and the firm operates in more than 130 countries. Mercer
is a wholly owned subsidiary of Marsh & McLennan Companies
(NYSE: MMC), a global team of professional services companies
offering clients advice and solutions in the areas of risk,
strategy, and human capital. With over 55,000 employees worldwide
and annual revenue exceeding $13 billion USD, Marsh & McLennan
Companies is also the parent company of Marsh, a global leader in
insurance broking and risk management; Guy Carpenter, a global
leader in providing risk and reinsurance intermediary services; and
Oliver Wyman, a global leader in management consulting. For more
information, visit www.mercer.com. Follow Mercer on Twitter
@MercerInsights.
MercerMiriam Siscovick, + 1
212-345-4760miriam.siscovick@mercer.com
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