Quality of Living City Ranking 2023 

Mercer’s Quality of Living data assesses the practicalities of daily life for expatriate employees and their families in assignment locations worldwide.

Following years of unprecedented and unpredictable times, the factors that influence the world’s economy have a direct impact on quality of living.

Many employees are reconsidering their priorities and assessing their work-life balances, in this the places in which they live and work and the quality of life they can have there with their families is of high importance.

Mercer’s quality of living data provides valuable information and hardship premium recommendations for most major cities throughout the world.

Vienna, Austria tops the quality of living ranking for 2023. Known for its rich history, stunning architecture, and vibrant cultural scene, Vienna offers its residents a high standard of living in various aspects.

It is followed by Zurich, Switzerland and Aukland, New Zealand in second and third place, respectively. Places with lower quality of living include several African cities –N’Djamena (Chad), Bangui (Central African Republic) and Khartoum (Sudan), rank 236th, 239th and 241st, respectively. Locations from Middle East also ranked low including Sana’a (Republic of Yemen), at 238, where it’s ranking signals the need for continued attention to humanitarian efforts and reconstruction initiatives. Also, Baghdad (Iraq), ranked at 240, who is seeking to rebuild its infrastructure.

This year the top 10 cities providing a high quality of living include 7 locations in Western Europe, 2 from Pacific and 1 from North America.

In addition to Vienna and Zurich, Denmark's capital, Copenhagen, secures the fourth position in the ranking. Known for its bicycle-friendly infrastructure, Copenhagen offers a high quality of living with its emphasis on sustainability, green spaces, and excellent healthcare and education systems.

Germany has several cities that feature prominently in the ranking. Frankfurt, Munich, and Dusseldorf rank sixth, seventh, and tenth, respectively. These cities are known for their economic prosperity, efficient public transportation, and cultural offerings.

It is important to note that the Quality of Living ranking considers various factors such as political stability, healthcare, education, infrastructure, and socio-cultural environment. Each city has its unique charm and advantages, making Europe a diverse and appealing region for residents, international assignees, and visitors alike.

For the Pacific region, Auckland , New Zealand claims third place, emphasising its exceptional quality of living. The city provides residents with a high standard of living, robust healthcare, and a dynamic cultural scene. For Australia, Sydney secures 9^th place with its world-renowned landmarks, thriving economy, and diverse lifestyle options which contribute to its top-tier quality of living.

While in North America, Canada, places 8^th with Vancouver which provides residents with a unique blend of outdoor recreation and cosmopolitan living, contributing to its high-quality lifestyle. 

In addition to the quality of living that a location can provide, the cost to live there influences how attractive a location is to employees and corporations.

In general, countries and cities are continuously striving to attract international businesses as well as digital nomads and mobile employees. The most successful locations are currently those combining flexible governance for mobile talent, a high quality of life and a reasonable cost of living.

The chart below shows the correlation between the cost and quality of living across selected cities around the world.

A emerging factor organisations take into consideration when establishing assignment locations is a city’s eco-friendliness. The Mercer Eco-City ranking provides valuable insights into the sustainability and environmental performance of cities around the world.

The ranking considers:

The above graph shows the correlation between a city's sustainability ranking and their quality of living ranking

Mercer is the leading provider of data on quality of living for employees sent to work abroad. Ongoing research on the practicalities of daily life for these expatriate employees and their families forms the basis of our annual ranking of the quality of living in many prevalent assignment locations. It is designed to help multinational companies and governments determine compensation strategies for their international assignees.

When you relocate executives from one country to another, you need clear and objective information that establishes the quality of living differences between cities. The Mercer Quality of Living Reports aim to provide tangible values for such qualitative perceptions, to establish an effective and objective assessment of the quality of living throughout the world.

The choice of cities surveyed is based on demand for data from Mercer’s clients.

New York City is used as the base city in comparing the factors taken into account for the global ranking. This year’s ranking includes 241 cities from across 5 continents.

The methodology was developed by an international team of Mercer professionals, working closely with major multinational companies and other experts in the field. The reports assess living conditions against generally accepted standards, providing a single premium recommendation for all assignees.

Mercer produces worldwide quality of living rankings annually from its Worldwide Quality of Living Survey. Individual reports are produced for each city surveyed. Moreover, comparative Quality of Living indexes between a base city and host city are available, as are multiple-city comparisons.

The data was analysed between September and November 2023, and it will be updated regularly to account for changing circumstances. In particular, the assessments will be revised to reflect significant political, economic, and environmental developments.

Catch our methodology webinar on demand here.

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