Vienna Tops Quality Of Life League For Expat Employees
Wednesday, November 30, 2011

European cities dominate worldwide quality of living rankings with Vienna regarded as having the best standard of living in the world, according to a new survey which helps governments and multinational companies set compensation levels when placing employees on international assignments.

The annual Worldwide Quality of Living Survey conducted by human resources consultants Mercer shows that European cities represent over half the cities amongst the top 25 in the ranking because of their modern infrastructure, high-quality medical services, good personal safety records and opportunities for leisure and recreation.

After Vienna, German and Swiss cities dominate the top of the ranking, with three cities each in the top 10. Zurich (2) is followed by Munich (4), Düsseldorf (5), Frankfurt (7) and Geneva (8), while Bern shares ninth place with Copenhagen.

In the next tier are Amsterdam (12), Hamburg (16), Berlin (17), Luxembourg (19), Stockholm (20), Brussels (22), Nurnberg (24) and Dublin (26). Paris ranks 30 and is followed by Oslo (33), Helsinki (35) and London (38). Lisbon is number 41, Madrid is at 43 and Rome ranks 52. Prague, Czech Republic (69), is the highest-ranking eastern European city, followed by Budapest, Hungary (73), Ljubljana, Slovenia (75), Vilnius, Lithuania (79), and Warsaw, Poland (84). The lowest-ranking European city is Tbilisi, Georgia (214).

However, Slagin Parakatil, Senior Researcher at Mercer, warns that economic and social factors may reduce quality of life in many parts of Europe in the future.

“European cities in general continue to have high standards of living, because they enjoy advanced and modern city infrastructures combined with high-class medical, recreational and leisure facilities," Parakatil said. "But economic turmoil, high levels of unemployment and lack of confidence in political institutions make their future positions hard to predict. Countries such Austria, Germany and Switzerland still fare particularly well in both the quality of living and personal safety rankings, yet they are not immune from decreases in living standards if this uncertainty persists.”

In Asia Pacific, Australia and New Zealand tend to dominate the region's rankings, with Auckland identified as the best city for quality of life (3rd in the overall ranking) followed by Sydney (11), Wellington (13), Melbourne (18) and Perth (21). The highest-ranking Asian cities are Singapore (25) and Tokyo (46). Hong Kong (70), Kuala Lumpur (76), Seoul (80) and Taipei (85) are other major Asian cities ranked in the top 100. Meanwhile, Dhaka, Bangladesh (204), Bishkek, Kyrgyzstan (206), and Dushanbe, Tajikistan (208), rank lowest in the region.

“As a region, Asia Pacific is highly diverse," says Parakatil. "Countries such as Australia, New Zealand and Singapore dominate the top of both our general and personal safety rankings, in part because they have been continuously investing in infrastructure and public services. In general, the region has seen a greater focus on city planning. Nevertheless, many Asian cities rank at the bottom, mainly due to social instability, political turmoil, natural disasters such as typhoons and tsunamis, and lack of suitable infrastructure for expatriates."

Unsurprisingly perhaps, Dubai, where the expat population has outnumbered the local population for a number of years, is ranked highest for quality of living across the Middle East and Africa, although the city is placed only 74th in the global rankings.

Dubai is followed in the rankings by Abu Dhabi, UAE (78), Port Louis, Mauritius (82), and Cape Town, South Africa (88). Johannesburg ranks 94 and is followed by Victoria, Seychelles (95), Tel Aviv (99), Muscat, Oman (101), and Doha, Qatar (106). Africa has 18 cities in the bottom 25, including Bangui, Central African Republic (220), N’Djamena, Chad (219), Khartoum, Sudan (217), and Brazzaville, Congo (214). Baghdad (221) is the lowest-ranking city both regionally and globally.

“The recent wave of violent protests across North Africa and the Middle East has temporarily lowered living standards in the region," Parakatil notes. "Many countries such as Libya, Egypt, Tunisia and Yemen have seen their quality of living levels drop considerably. Political and economic reconstruction in these countries, combined with funding to serve basic human needs, will undoubtedly boost the region as a key player in the international arena.”

In the Americas, Canadian cities dominate the top of the region's ranking. Vancouver (5) has the best quality of living and is followed by Ottawa (14), Toronto (15) and Montreal (22). Honolulu (29) and San Francisco (30) are the highest-ranking US cities. In Central and South America, Pointe-à-Pitre, Guadeloupe (63), ranks highest, followed by San Juan, Puerto Rico (72), and Montevideo, Uruguay (77). Port-au-Prince, Haiti (218), ranks lowest in the region.

“The disparity in living standards between North and South America is still considerable," Parakatil observes. "Though a number of South and Central American countries have experienced positive change, political and safety issues predominate in the region. In particular, drug trafficking, drugs cartels and high levels of street crime, combined with natural disasters, continue to impair the region’s quality of living.”

Mercer’s Quality of Living reports provide employers with hardship premium recommendations for 221 major cities throughout the world, ranked against New York as the base city.

This year, the survey separately identifies those cities with the highest personal safety ranking based on internal stability, crime levels, law enforcement effectiveness and the host country’s international relations. Luxembourg tops this personal safety ranking, followed by Bern, Helsinki and Zurich – all ranked at number two. Vienna ranks fifth, while Geneva and Stockholm both rank sixth. Baghdad (221) is the world’s least safe city, followed by N’Djamena, Chad (220), Abidjan, Côte d'Ivoire (219), Bangui, Central African Republic (218), and Kinshasa, Democratic Republic of the Congo (217).

“Companies need to keep on top of current developments to ensure that their compensation packages remain competitive and continue to motivate expatriate employees," says Parakatil. "That means reviewing major events, such as social unrest, economic turmoil or natural disasters and their impact on the success of overseas placements."