Most people move abroad for work to earn more, especially since the Covid-19 crisis, leading to rising prices worldwide. At the same time, the jobs of the future (especially those involved in digital and sustainable development) are on the rise. Hence, countries are increasing salaries to attract international talent.
In high-tech sectors, wages are even higher due to skilled labor shortages. While comparing salaries between your home and host countries can be quite useful, it might not be the only factor to consider. So how can expat decide on their next destination in terms of career prospects and salaries?
Which countries offer the highest wages and the best opportunities?
If you are a digital engineer, web editor, customer advisor, corporate relations manager, data analyst, developer or sustainable development manager, here is some good news! These are currently the most prominent positions. There has been significant progress lately in ecological transition and the digitization of exchanges. Although the pandemic and its lockdowns slowed down the global economy, the jobs of the future are on the rise more than ever. This includes professions that are not necessarily "emerging" (such as customer advisor) but which are going more and more digital. Today, most of the promising sectors, such as marketing, human resources, sales, health, engineering, etc., are going digital.
Where should you move for work?
When it comes to salaries, some countries are more generous than others. According to the William Russell salary comparison tool, Switzerland is a better place to be a data analyst than Japan. In Switzerland, you can earn around $101,000 annually, and half as much in Japan. Switzerland is also a great place to work for human resources managers as they can earn $130,586 annually, far ahead of Denmark (where they can earn $107,052 annually), France offering some $61,974 per year, and Poland with $35,337. On the other hand, doctors stand better chances of earning a good living by moving to the United States, where salaries are higher than in Canada and Norway. Indeed, foreign doctors can get to earn 151,000 dollars a year in the USA, compared to 112,290 dollars a year in Canada and 110,668 in Norway. In Switzerland, however, doctors can expect around 101,447 dollars annually.
But would you consider a move to a country only because salaries are higher in your profession? It might not be such a good idea. What you need to keep in mind is that wages might be high, but so is the cost of living, even for expats.
The cost of living for expats
You cannot really compare salaries without considering the cost of living. In Switzerland, for example, salaries are high, but so is the cost of living. It's the same in Japan, especially in Tokyo, where renting a 20m² studio can cost more than 630 dollars per month. Having a high salary alone means nothing. It's wise to assess the essential costs of living in the country, including transportation, gasoline, food, childcare, schooling, disability, housing, insurance, health, leisure, etc. Hence, high Swiss wages are best understood by comparing them to the high cost of living. The OECD ranked the Swiss price level index in 2021 2nd highest in the world, with 142 points. Norway leads the ranking with 152 points. Denmark and Canada rank 6th with 120 points each. The United States ranks 9th with 117 points. Japan, for its part, ranks 17th with 117 points while France is in the 21st place with 98 points.
Therefore, you could live in a generous country in terms of wages but with a high cost of living. In the end, you may not benefit from your high salary, at least not as you had imagined. Comparison tools like William Russel are a good start for those who are looking to boost their career abroad. They help in assessing salary levels in different countries. However, they do not take into account the cost of living or the socio-political context, which actually have a significant impact on income.
Jobs and country policies
Along with Switzerland, the United States, United Arab Emirates, Japan, and Qatar are among the countries with the highest wages in the world. However, it's more about "cutting edge" sectors, such as digital, marketing, industry and sustainable development. It's worth mentioning that the health crisis (and the economic crisis it has caused) has only widened the gap between the higher socio-professional categories and the rest that are more vulnerable to economic situations.
A country's work-related policies are another key thing to consider. So make sure you are aware of whether there are workers' rights laws in the country where you intend to move. In Germany, for example, trade unions have significant power and can negotiate with the State and employers organizations. In the United States, trade unions are still considered a threat by employers and conservatives. In France, relations between the state, employers and unions are often conflictual. In addition to salary protection, expats must also consider their rights and entitlements as citizens. Visa policies can give you a better idea about that. The United Arab Emirates has gained more popularity with the Covid pandemic. The country has been introducing incentives one after the other to attract and retain global talent. In November 2021, they introduced a huge legal reform, targeting certain Islamic laws, such as the relaxation of extramarital relations for foreign couples, better protection of women, criminalization of "honor crimes", etc.
Conclusion
The cost of living, quality of life, career prospects, and geopolitics are some of the aspects of expat life that go beyond the concept of "better salary, better life". In fact, as an expat, you depend on your salary to live in a country, but you don't live with it alone. So it's best to take the time to compare salaries between your home country and other countries, taking into account all that is essential for life and well-being. Then only you will be better able to appreciate the real meaning of the salary you are being offered as an expat.
