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Australia
Melbourne, 11 June 2008

• Australia and New Zealand dominate top of rankings, joined by European cities
• Zurich scores highest for overall quality of living; Baghdad, the lowest

Australian and New Zealand cities have continued to lead worldwide quality of living standards, making them attractive destinations for overseas expatriates, Mercer’s 2008 Worldwide Quality of Living Index has found.

Major Australian and New Zealand cities rank amongst the world’s top 35 cities for overall quality of living and dominate the rankings within the Asia Pacific region.

Mercer’s head of information product solutions, Mr Rob Knox, said the results were great news for Australian employers trying to attract overseas workers to help ease pressure on the worst skills shortage this country has ever seen.

“Mercer’s quality of living index helps employers and governments compensate employees relocating in the international job market based on the quality of living in the respective city, but it also sends a message to employees looking for an international assignment.

“The fact that our cities enjoy among the best standards of living in the world reinforces the attractiveness of Australia for workers and for multi-national organisations – at a time when Australian employers need skilled overseas workers more than ever,” said Mr Knox.

Mercer’s analysis is based on an evaluation of 39 quality of living criteria for each city including political, social, economic and environmental factors, personal safety and health, education, transport and other public services. The survey covers 215 cities and is conducted to help governments and major companies when placing employees on international assignments. Cities are compared to New York as the base city, with an index score of 100.

In Australia, Sydney, ranked 10th this year, scoring 106.3 points; Melbourne, Perth and Adelaide held their positions at 17th place (scoring 104.8 points), 21st place (104.3 points) and 29th place (103 points) respectively. Brisbane scored 102.4 points to come in at 34th place this year - still above New York, the base city.

New Zealand cities also ranked favourably and remained consistent. Auckland again scored among the world’s top five cities, at 107.3 points, and Wellington at 12th place, scored 105.8 points.

Mr Knox said the results support a strong case for employers to continue sending expatriates to Australian shores to develop their operations.

“Businesses face constant challenges in identifying new markets, expanding operations and acquiring and strategically deploying resources. Establishing suitable allowances linked to local costs and quality of living is essential in encouraging expatriate employees with transferable skills to accept international assignments.

“The quality of living in Australian major cities is amongst the best in the world, particularly in the Asia Pacific region – which is why companies continue to look to Australia to establish or grow their operations.

“Our major cities continue to tick all the boxes for expatriates who have access to established infrastructure and transport facilities, quality housing close to the city, a wide selection of restaurants and other amenities, as well as a good education and environment for their families,” Mr Knox said.

Asia Pacific

Auckland (5) is the city in Asia Pacific with the best quality of living, followed by Sydney (10) and Wellington (12). Elsewhere in Asia, Singapore (32) ranks two places higher than in 2007, slightly higher than Japanese cities such as Tokyo (35). Hong Kong and Beijing retain their 2007 rankings, respectively 70 and 116 in 2008. Bangalore (140) is India’s most highly ranked city followed closely by Mumbai (142). Both have seen a marked improvement in their rankings since 2007. Elsewhere in Asia, Kuala Lumpur ranks 75, followed by Taipei (84), Seoul (86), Bangkok (109) and Jakarta (146). According to the index, Auckland, the city with the best quality of living in Asia Pacific, scores 107.3 while Dhaka, the city with the region’s worst quality of living, scores 38.9.

For personal safety, Pakistan is one of the lowest-scoring destinations with Karachi, Islamabad and Lahore ranked 213, 203 and 192 respectively. Colombo in Sri Lanka appears at 204 while Dhaka (201), Jakarta (189) and Manila (178) are amongst the region’s cities scoring lowest on personal safety. Singapore is the region’s best location for personal safety, scoring 120.2 compared to Karachi’s 25.3.

According to Slagin Parakatil, senior researcher in Mercer’s Geneva office “Increased political stability and the growth of China and India have led to a broad improvement in the quality of living for expatriates in some of the major cities,” commented Mr Parakatil. ”However, border conflicts and internal issues, combined with high levels of crime, make many other countries like Pakistan, Sri Lanka and Indonesia less appealing relocation destinations.”

Americas

Canadian cities dominate the rankings in the Americas. Vancouver (4) has the best quality of living followed by Toronto (15), Ottawa (19) and Montreal (22). In the US, after Honolulu (28) comes San Francisco (29), Boston (37) and Chicago (44). Washington, DC, ranks 44, above New York (49).

In Central and South America, San Juan in Puerto Rico retains the highest ranking at 72, followed by Montevideo at 76. Port au Prince in Haiti ranks lowest in the region at 202. In terms of the index, Vancouver scores 107.6 compared to Port au Prince’s 39.8.

In terms of personal safety, Canadian cities again perform best with Calgary, Montreal, Ottawa, Toronto and Vancouver all ranked jointly at 22. In the US, Chicago, Honolulu, Houston, Lexington, San Francisco and Winston-Salem all share rank 53. Elsewhere in the region, Santo Domingo has the highest ranking at 92 followed by Panama City (96) and Monterrey (99). Bogota (207) in Colombia has the lowest levels of personal safety. The Canadian cities score 115.8 compared to Bogota’s 30.4.

Mr Parakatil said, “Personal safety within Canadian cities ranks among the highest in the region. This is due to a relatively low crime rate and a stable political environment. In contrast, many of the Latin American cities such as Caracas, Bogotá or Port au Prince continue to be undermined by crime and political and economic turmoil. Traffic congestion and pollution have also had an impact.”

Europe

Switzerland and Germany dominate the European cities with the best quality of living, each having three cities represented in the top 10. Bern, in Switzerland, ranks 9 following behind Zurich and Geneva. Dusseldorf (6), Munich and Frankfurt (both at 7) represent Germany. Outside the top 10 are Copenhagen (11), Amsterdam (13), Brussels (14), Berlin (16) and Luxembourg (17). Dublin, ranking 25, is followed by Paris (32), Barcelona (42) and Madrid (43). Lisbon is number 44 and is followed by Rome, 55, up from 61 in 2007. Prague (71) is the highest-ranking eastern European city followed by Budapest (74), Vilnius (78), Ljubljana (82) and Warsaw (85). The lowest ranking European city is Minsk (183) in Belarus. Minsk scores 49.4 on the index compared with Zurich’s 108. Milan (41), Lisbon (44), Vilnius (78) and Riga (89) have also become more attractive destinations, rising markedly in the rankings since 2007.

The most dangerous city for personal safety in Europe is Moscow (196). The rankings of Bern, Geneva and Zurich, all at 2, confirm Switzerland’s position as one of the safest countries in Europe. According to the index, Luxembourg, the European city with the highest level of personal safety, scores 131.4. This is in stark contrast with Moscow, the European city scoring the lowest at 37.7. In the UK, Glasgow (43) and Birmingham (53) rank safer than London (69).

Mr Parakatil commented, “Europe dominates the list in terms of infrastructure, health and political stability. Large discrepancies continue to exist within this region. Living standards in Eastern European cities have been catching up with Western European cities.”

Middle East and Africa

Cape Town (80) in South Africa and Port Louis in Mauritius are the region’s cities with the best quality of living followed by Dubai (83) and Abu Dhabi (87). In contrast, Johannesburg slips from 90 in 2007 to 94 in 2008 and Harare in Zimbabwe slips from 168 in 2007 to 174. Out of the 25 lowest ranking cities, 19 are from Africa including Lagos (198), Port Harcourt (207) and Bangui (214). Two are from the Middle East including Sanaa (207) and Baghdad (215) – the city with the world’s lowest quality of living and lowest levels of personal safety. Cape Town scores 87.9 compared to Baghdad’s 13.5.

For personal safety, apart from Baghdad, Kinshasa is the worst location, ranked 214, and Nairobi (212). Lagos and Port Harcourt rank equally at 209. Jerusalem and Beirut both rank 199 and Harare, 184. Abu Dhabi (33) is the region’s best city for personal safety, followed by Dubai (47), Port Louis (60). Lusaka and Manama rank equally at (118). According to the personal safety index, Abu Dhabi scores 112 against Baghdad’s 3.8.

According to Mr Parakatil, “Several regions of the Middle East have benefited enormously from government investment in infrastructure, health and sanitation and are rising up the rankings. However, personal safety and political tensions remain stumbling blocks and account for the low ranking of many of the region’s cities. Multinationals often compensate for this by increasing compensation levels and other benefits for their employees.”

Notes to Editors:

Data was largely collected between September and November 2007 and is regularly updated to take account of changing circumstances. In particular, the assessments will be revised in the case of any new developments. The Mercer database contains more than 350 cities, however only 215 cities have been considered for the quality of living 2008 ranking in order to compare from one year to the next.

The worldwide rankings are produced from the most recent Worldwide Quality of Living Survey, conducted by Mercer. Individual reports are produced for each city surveyed, but please note that there is no overall summary report available. The cost of comparative quality of living indexes between a base city and a host city is 300 Euros (multiple city comparisons are available). Further information and copies of the reports are available from Mercer Client Services, on +41 22 869 3000.  Alternatively, please visit our dedicated website.

Mercer’s study is based on detailed assessments and evaluations of 39 key quality of living determinants, grouped in the following categories:

• Political and social environment (political stability, crime, law enforcement, etc)
• Economic environment (currency exchange regulations, banking services, etc)
• Socio-cultural environment (censorship, limitations on personal freedom, etc)
• Health and sanitation (medical supplies and services, infectious diseases, sewage, waste disposal, air pollution, etc)
• Schools and education (standard and availability of international schools, etc)
• Public services and transportation (electricity, water, public transport, traffic congestion, etc)
• Recreation (restaurants, theatres, cinemas, sports and leisure, etc)
• Consumer goods (availability of food/daily consumption items, cars, etc)
• Housing (housing, household appliances, furniture, maintenance services, etc)
• Natural environment (climate, record of natural disasters)

Top 50 cities: Quality of living

Base City: New York, US (=100)

Top 50 cities: Personal safety

Base City: New York, US (=100)

* Personal Safety Ranking 2008 includes the following criteria: Relationship with other countries; Internal Stability; Crime & Law Enforcement

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