Southeast Asian cities have their ups and downs, and Beijing and Shanghai have fallen in the rankings.

SHANGHAI, June 24 June, 2024 /PRNewswire/ -- Mercer, a global human resources and health benefits consulting firm under Marsh & McLennan Companies (NYSE: MMC), recently released its 2024 survey on the cost of living in cities. The ranking is designed to provide multinational organizations with insights for planning their international talent compensation strategies.

Hong Kong and Singapore have once again become the first and second most expensive international employee dispatch cities in the world. Zurich, Geneva, and Basel in Switzerland also ranked among the top five most expensive cities in the world. The highest ranked cities in China besides Beijing and Shanghai are Chongqing (ranked 134th), Xi'an (139th), and Wuhan (147th), which have all slipped compared to last year.

"Changes in the cost of living will have a significant impact on the globalization of companies," said Yvonne Traber, Mercer's global partner and head of talent deployment. "Companies must be aware of changes in the cost of living trends in a timely manner to update and iterate their talent attraction and retention strategies, flexibly manage talent needs and costs, and effectively formulate international talent strategies."

Rising housing costs in many cities around the world present challenges for employers in talent deployment. Volatile inflation trends have also weakened the purchasing power of international dispatched employees and added extra pressure to their compensation plans. These factors increase the difficulty for companies to attract and retain top talent, and may lead to the high cost of salary and welfare benefits, restricted staff mobility, and increased operating costs.

"The quality of life of dispatched employees may be affected due to declining purchasing power and income. In order to better address these challenges, companies and organizations should provide up-to-date compensation and welfare plans and humane support services for international talent, while regularly understanding employee needs and feedback and engaging in open communication to timely solve problems and find solutions that match both organizational and employee interests," said Lu Zhenghao, Mercer's global partner and general manager of China's talent business.

The rankings of the living costs of Chinese cities have continued to decline in 2023. Except for Beijing and Shanghai, the rankings of other mainland Chinese cities, such as Shenzhen (34), Guangzhou (71), Qingdao (93), and Nanjing (105), have dropped by between 14 and 38 places. Chongqing (134), Xi'an (139), and Wuhan (147) are ranked relatively low in the regions where China participates in the rankings.

Factors affecting the cost of living in China include inflation, housing costs, food prices, income disparity, currency exchange rates, and government policies. China's economy experienced significant growth and transformation in 2024. According to data released by the National Bureau of Statistics in April, China's GDP for Q1 2024 was CNY29.6299 trillion, an increase of 5.3% YoY and 1.6% QoQ. The total retail sales of consumer goods increased by 4.7% YoY, while the national urban unemployment rate in Q1 was 0.3 percentage points lower than the same period last year. ^"

The current inflation rate in China has been relatively moderate, while housing costs will rise due to urbanization and population growth. Food prices will fluctuate with supply and demand dynamics. Income disparity between urban and rural areas and regions will also affect the cost of living, while exchange rates will affect the prices of imported goods.

Asia has the two most expensive cities in the world in terms of living costs. Due to limited land area, Hong Kong and Singapore have limited housing supply, making housing costs one of the main expenditures for residents and foreigners. As an important economic hub, these two cities have attracted a large number of foreigners, further pushing up the cost of goods and services. As a region, Asia is experiencing positive and negative mixed trends. Inflation, fuel and food prices, and the global economic slowdown all affect different living cost standards across the region.

Southeast Asian cities have also become popular destinations for Chinese companies in recent years, and the rankings of some of these cities have also declined this year, such as Bangkok (129), Hanoi (172), Ho Chi Minh City (178), and Kuala Lumpur (200). "In addition to rising housing and commodity costs, Hong Kong and Singapore have well-established infrastructure, healthcare, and education systems, and a high standard of living. Although many other Asian cities have fallen in the rankings due to currency devaluation, mild inflation, and some changes in housing prices, the entire region of Asia is on the road to economic recovery. To maintain the purchasing power and living standards of dispatched personnel, many organizations have reviewed their dispatch allowances and changed the housing budget review cycle from once a year to once every half year or quarter," said Ma Yaqin, Mercer's head of Asia's talent deployment.

Five European cities are among the top ten most expensive cities in the world, including four Swiss cities and London, which jumped nine places to rank eighth. Although the cost of living in each European city varies, the European Central Bank predicts that the annual inflation rate in the Eurozone will continue to decline, meaning that as the European economy recovers from recent setbacks, the cost of living will tend to stabilize.

The current cost of living in the United States remains high, with all American cities included ranking in the top 100. Seven of these cities are in the top 20, with the highest rankings going to New York City (7) and Los Angeles (10). Canadian cities rank lower in the North American region due to their economy showing unexpected resilience. The highest ranking is Toronto (92), followed by Vancouver (101). The cities in North America with the greatest changes in ranking compared to 2023 are Mexico City (33, up 46 places) and Monterey (115, up 40 places).

2024Ranking of urban cost of living

Data source:

^[1].The State Council Information Office press conference on the economic performance in the first quarter of 2024

About JSKN003: 2024Cost of living ranking

Mercer's Cost of Living Ranking includes the cost of over 200 categories of goods and services in 227 cities distributed across five continents, including housing, transportation, food, outfits, housewares, and entertainment activities. The research data collection aims to provide all the key information needed for companies and organizational employers to design efficient and transparent international employee compensation plans.

Data comparing Mercer's cost of living and housing rental prices were derived from a market survey conducted in March 2024 and calculated based on the exchange rate at that time and a basket of goods and services international prices obtained by Mercer's global cost of living survey. The research is compared to New York City as the benchmark city, and the exchange rate changes are calculated relative to the US dollar.

Inflation is commonly defined as the change in prices from time T to time T+1, using exactly the same specifications for the size and characteristics of the goods. Therefore, in Mercer's cost of living survey, the inflation data quoted by Mercer aims to show fluctuations in this index calculated in local currency over the past six or twelve months, without considering exchange rate fluctuations between the home country and the host country.

About Mercer

Mercer believes that creating a better future can only be achieved by redefining the workplace, reshaping retirement and investment outcomes, and unleashing true health and welfare. Mercer operates in 130 countries and regions around the world, with nearly 25,000 employees located in 43 countries and regions. Mercer is a wholly-owned subsidiary of Marsh & McLennan (NYSE: MMC). Marsh & McLennan is a global international group company that provides risk, strategic, and human resource related professional services worldwide, with over 85,000 employees and annual revenues of over 20 billion US dollars. Through its leading subsidiaries in their respective industries, Marsh, Guy Carpenter, and Oliver Wyman, Marsh & McLennan helps clients cope with an increasingly changing and complex business environment. For more information, please visit or follow Mercer China's official WeChat account "MercerChina".