In spite of the global downturn, a new survey shows that expatriate growth looks likely.

Global Relocation Trends -- 2008 Survey Report by GMAC Global Relocation Services reported that respondents once again expressed a great deal of optimism about current and future growth in the expatriate population, with 68 percent expecting an increase, only 2 percent less than last year’s record-breaking high of 69 percent.

The 2008 Global Relocation Trends Survey (GRTS) report is the 13th report issued by GMAC Global Relocation Services, LLC (GMAC GRS). Issued since 1993, these reports constitute one of the industry’s most reliable sources of global relocation data and trends.

Here are some of the main findings from the survey.

Companies optimistic about future growth of the expat population
Respondents once again expressed a great deal of optimism about current and future growth in the expatriate population, with 68 percent expecting an increase. Interestingly, 67 percent of respondents reported an increase – only 2 percent less than last year’s record-breaking high of 69 percent.

This continuing sense of optimism has remained stable despite international monetary concerns triggered by deficit spending in the United States and the rising inflation rate, the dollar’s slide with respect to competing currencies and the rising number of mortgage defaults in Britain and the United States (especially in the sub-prime market) as well as the international financial impact of these defaults.

This could be explained by the steady expansion of the European Union, which has created a large and relatively open marketplace for trade that encompasses 500 million citizens. On the other hand, the booming economy of China and widespread use of expatriates in that region yield additional expatriate population growth. Finally, there is the possibility that expatriate growth outside of the United States is an international response to the Sarbanes-Oxley Act of 2002, which increases the compliance costs of US-based companies.

The expat population
In 2007, respondents reported that 19 percent of expatriates were women, compared to 20 percent in the 2006 report. The peak figure for female participation was 23 percent in the 2005 GRTS report. The historical average is 15 percent.

Fifty percent of expatriates were 20 to 39 years old. Sixty percent of expatriates were married, less than the historical average of 66 percent. The percentage of married men (51 percent) was the lowest in the report’s history.

Before (and including) the 2002 GRTS report, respondents reported that an average of 59 percent of expatriates had children accompanying them while on assignment. After the 2002 GRTS report, however, this average dropped to 52 percent where it has remained. This development may be linked to the lower percentage of married expatriates. On the other hand, family challenges may be the source of the decline.

Finding potential assignees is a challenge
The report reveals that 21 percent of respondents identified finding suitable candidates as the most significant relocation challenge that was critical to their companies. However this should not be looked at in isolation.

In addition to finding suitable candidates, survey respondents identified career management (16 percent), retention of expatriates (12 percent), and partner dissatisfaction (10 percent) as significant relocation challenges. Furthermore, family concerns were cited as the most common reason for assignment refusal (89 percent), and this was followed by spouse career concerns (62 percent). As mentioned in the report: “If we consider each of these concerns as part of a three-fold challenge to (1) find suitable candidates, (2) help expatriates (and their families) to complete their assignments, and (3) retain these employees once an assignment is completed, we will have a better understanding of how to improve the odds for success on an international assignment.”

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