Australia has two of the least risky cities in the world for recruiting, employing and relocating staff, but still falls short compared to Toronto, New York and London.

According to a new global study by Aon Consulting, Melbourne and Sydney are rated in the top 20 cities as the lowest risk to employers.

The “world-first” study found Toronto has the lowest employment risk in the world, while Melbourne ranked at number 15 and Sydney 16. However, both cities made the top five in the Asia-Pacific region.

Aon Consulting MD Stewart Fotheringham told insuranceNEWS.com.au the ratings enable companies to assess the risks they face when hiring, employing and deploying staff.

He says the study follows a real lack of information available for businesses looking to expand.

“It was the one thing our clients highlighted when looking at expanding their operations, with no information available on recruiting in that area.

Despite Toronto and New York scoring a lower risk factor than Australia’s two major cities, there isn’t much between them.

Melbourne received a rating of 84 and Sydney 85, compared to the low risk leader, Toronto on 70 and New York 73.

The smaller size of Australian cities, an ageing population and higher staff turnover rates contributed to the ranking.

Mr Fotheringham says there is plenty of information on political and business risk available but nothing on the “people factor”.

He says education and talent development are also key issues when looking at expanding a business in a particular area.