New Zealand ranked as the highest-ranked country for contingent workforce operations in 2016, followed by Singapore and the Philippines, according to the fourth contingent workforce index released by ManpowerGroup (NYSE: MAN). The US fell to sixth place from second on the list, and Canada dropped to seventh from third.

The US drop was based largely on higher costs compared to other countries. However, it ranks seventh globally in both regulation and productivity and third in availability. Higher weighting of the large workforce and positive geopolitical factors are balanced by the higher cost of these workers with regard to overtime, profit taxes and higher engineering and technology wages, among other cost-related metrics, the report found.

The is New Zealand’s second consecutive year at the top of the list. The top five markets for 2016 do not feature any countries from the Americas as the workforce volumes for countries in the other regions elevated them to the top based on more favorable “availability” scores, according to the report.

“Over the past year, we saw a shift in priorities that resulted in a change in the 2016 weighting attributed to workforce size,” said Kate Donovan, senior VP of ManpowerGroup Solutions. “Employers are feeling the talent shortage. Availability of contingent workers, as well as skilled labor, is gaining prominence. As a result, we saw countries like China and India re-emerge into the top ten markets for availability of talent.”

The index measures and tracks the relative ease of sourcing, hiring and retaining contingent workforce in 75 countries. Each country in the index is assessed on 50 market conditions and statistics that influence contingent workforce conditions. Countries’ standings reflect a cumulative index ranking based on workforce availability, cost efficiency, regulation and productivity. In the 2016 index, weighting of the volume of skilled workers within a market has increased significantly from 2015. The definition of availability was also modified to meet current industry standards.

Here are the 2016 top 10 markets for contingent workforce engagement and their index levels:

1. New Zealand: 2.73
2. Singapore: 2.72
3. Philippines: 2.67
4. Israel: 2.62
5. India: 2.61
6. United States: 2.61
7. Canada: 2.60
8. Ireland: 2.58
9. United Kingdom: 2.46
10. Hong Kong: 2.46