Economic pressures have led companies to turn to Vietnam and the Philippines for affordable, skilled talent.
A report from Recruitery showed a 300% growth in companies utilising their Employer of Record and payroll services in these countries for Q1 2023.
However, local job markets saw a 51% downturn.
Software, product, marketing, and accounting roles found takers in Vietnam, while educational expertise, customer service, and sales roles were popular in the Philippines, according to Toan Nguyen, Recruitery’s CEO.
Key factors driving this trend included cost savings, regional proximity, cultural ties, and a burgeoning, youthful talent pool.
Furthermore, solutions like Deel, Recruitery, and Remote enable companies to form teams without local entities, unlocking geo-arbitrage benefits.
This trend of cost-cutting and talent sourcing from developing countries is likely to continue in the face of economic uncertainties.