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Ciett economic report_2011

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  • 1. ECONOMIC REPORT The agency work industry around the world2011 Edition(based on figures available for 2009)
  • 2. The agency work industryaround the world ECONOMIC REPORT 2011 Edition (based on figures available for 2009)
  • 3. IntroductionIn 2009, the global agency work impact of the economic crisis on the jobs that would not otherwise exist,industry continued to feel the impact of labour market in general, and the enhancing companies’ competitivenessthe economic downturn that started in agency work sector in particular, began and workers’ employability, therebythe USA in 2007, and quickly spread to in spring 2008 and accelerated in 2009. promoting a labour market thatthe rest of the world. Certain countries This report goes on to begin to describe corresponds better to peoples’ - andwere hit harder than others, while some the strong recovery made by the agency companies’ - needs and aspirations.continued to grow. The trends in this work sector in the first half of 2010.report go some way to showing that In global markets emerging from crisis,the openness and the socio-economic In 2009, some markets such as the agency work industry’s capacity tofabric of national economies and Brazil and South Africa continued anticipate and match labour marketthe flexibility of their labour markets to grow, boosted by their rapidly needs with the required skills is evenaccount for the difference across expanding economies, which were more crucial, as agencies serve ascountries. only temporarily set back by the impresarios for workers, immediately crisis. However, most mature markets identifying job vacancies, providingOverall, the total number of agency continued the declines which began in training, and facilitating the transitionworkers worldwide fell 6% in 2009, the previous year. from unemployment to work, from onecompared to 2008, amounting to assignment to the next. In addition,nearly 9 million full-time equivalents Agency work plays - and still has the agency work prepared the ground for aon a daily basis. In parallel, global total potential to play further - a valuable job-creating economic upturn, helpingannual sales revenues also fell by 16%, role in easing transitions within and into companies face the ongoing globalamounting to €203 billion. The negative the labour market. Agency work creates competitive pressure, increasing labour4
  • 4. market participation, and furthermore,accelerating and increasing the numberof jobs created as the economyrecovers.Now more than ever, the agency workindustry plays a key role in improvingthe functioning of the labour market,by facilitating the match betweensupply and demand of labour, bysecuring upwards transitions for agencyworkers, and by providing more workopportunities for more people. 5
  • 5. 6
  • 6. Content1. The players 112. Agency workers in numbers 193. The profile of agency workers 28 a. General trends b. Agency workers’ motives & satisfaction4. Agency work’s contribution to a better functioning labour market 46 a. Transitions b. Job creation c. Inclusion & diversity5. Companies’ rationale to use agency work 656. Agency work and the economic recovery 72 7
  • 7. The key facts & figuresThe players• There are 72,000 private employment The profile of agency workers agencies and 169,000 branches worldwide, employing 741,000 internal • Nearly three in five agency workers are staff Agency workers aged less than 30• In 2009 the total annual sales revenues of in numbers • Three in four agency workers have at best the top 10 private employment agencies finished their secondary education worldwide accounted for 29% of the total • In 2009 nearly 9 million agency workers • A significant proportion of agency agency work market in full-time equivalents were employed workers do not seek a permanent• In 2009 the global total annual sales by private employment agencies across employment revenues amounted to €203 billion, the globe, down 6% from 2008 • The motive to work via an agency is down 16% from 2008 • The agency work penetration rate is 1.7% usually to find a permanent job• Japan is the world leader with 24% of total in Japan and 1.5% in Europe and 1.3% in annual sales. The USA represents 22% of the USA the global agency work market, followed • The average number of hours worked by the UK at 12% by an agency worker during one year is• Europe is the leading regional entity by nearly half as much as a full time worker total annual sales revenues, accounting • Most agency work assignments are more for 40% of global total annual sales than one month long revenues8
  • 8. The contribution of agencywork to a better functioning Agency work and the economiclabour market recovery Companies’ rationale to use• Agency work facilitates transitions in the agency work • Agency work is a bellwether of the labour market economic situation• Agency work contributes to reducing • Agency work improves companies’ • As a cyclical business - and a forecasting unemployment especially by serving as a competitiveness indicator - agency work has suffered from stepping-stone into the labour market • Agency work is not a substitute for the economic crisis, but agency workers• The higher the agency work penetration permanent employment have been the first ones to be hired when rate the lower the level of undeclared • Reasons to use agency work are generally the economy recovers work to meet peaks in demand or to fill in for • Agency work limits the risk and duration• Private employment agencies contribute absent employees of unemployment to upgrading the skills of agency workers • The private employment agency industry• Vulnerable target groups use agency has rebounded sharply since the work as a means of entering the labour recession market 9
  • 9. 10
  • 10. 1. The players• There are 72,000 private employment agencies [PrEAs] worldwide, with 169,000 branches and 741,000 persons as internal staff• Total annual sales revenues for the top 10 PrEAs account for 29% of the global agency work market• Global total annual sales revenues amounted to €203 billion in 2009• Japan is the world leader with 24% of total annual sales. The USA represents 22% of the global agency work market, followed by the UK with 12%• Europe is the leading regional entity by total annual sales revenues, accounting for 40% of global total annual sales revenues 11
  • 11. There are 72,000 privateemployment agencies...From 2008 to 2009 the number Number of private employment agenciesof private employment agencies Japan 20,000 UK 11,500[PrEAs] increased by 1% to reach Germany 9,078 USA72,000. Europe accounts for 48% of Netherlands 3,640 6,000 Australiaall PrEAs, the Asia/Pacific region for South Africa 3,500 3,00034%, North America for 8% and Africa Brazil South Korea 1,611 1,419for 4%. Japan, Germany and the UK Denmark France 1,347 1,200are the top three countries in terms Austria Poland 1,200 1,086of number of PrEAs, accounting Canada Peru 945 722collectively for 56% of all agencies Hungary Colombia 667 610worldwide. As recognised by the ILO: Sweden Mexico 500 500“Private employment agencies play Finland 450 Norway 400an important role in the functioning Spain* 363 Slovakia 355of contemporary labour markets. Turkey 283 Portugal 265For the past three decades, the Czech Republic 215 Chile 179increasing need to provide workers Belgium 140 Romania 129and services to a rapidly growing Argentina 92 Italy 85and flexible labour market has led Slovenia 59 Macedonia 27to the spectacular development of Greece 9these agencies.” ** 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 * figures for 2008 ** ILO - Private employment agencies, temporary agency workers and their contribution to the labour market | 200912
  • 12. ... with 169,000branches worldwide ThE PlAyErSFrom 2008 to 2009 the number of Number of branchesbranches increased by 1% to attain Japan 83,808169,000; the Asia/Pacific region USA UK 20,000 17,000accounting for 55%, Europe for Germany 7,064 Australia 7,00028%, and North America for 12%. South Africa 7,000Japan, the USA, and the UK are the France 6,500 Netherland 5,285top three countries by number of Canada 3,616 Italy 2900branches, accounting together for Poland 2,94172% of all branches worldwide. Czech Republic 2,069 South Korea 1,983 Spain* 1,700The “branch to PrEA” ratio varies Austria 1,500 Belgium 1,234greatly from country to country, from Hungary 977a staggering 34.5 branches per PrEA Sweden 850 Norway 700in Italy to fewer than one per private Brazil 489 Slovakia 465employment agency in Germany. This Argentina 430difference can be explained by the Portugal* 427 Romania 194very high concentration of the Italian Slovenia 140 Chile 102agency work market, characterised by Greece 16a small number of large companies 0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000with an extensive network. This isin contrast to highly fragmented * figures for 2008markets, such as Germany, single local branch (some German of dormant, non active agenciescharacterised by a large number companies operate without any influencing this number). The globalof PrEAs, often operating from a branches, while there is also a number average is 2.3 branches per PrEA. 13
  • 13. 741,000 people were employedas internal staff by PrEAs in 2009From 2008 to 2009 the number Internal staff employedof internal staff [HR consultants Japan 185,000and back-office people working Brazil 169,635in branches] decreased by 10% to USA 120,000 UK 108,833reach 741,000. Europe accounts for Germany 44,70030%, the Asia/Pacific region for 26%, Netherlands 34,000 France 23,000and South America for 25%. The top Sweden 11,000three countries in terms of internal Italy Belgium 9,000 6,482staff are Japan, Brazil, and the USA, Mexico 6,100 South Africa 5,500accounting together for 65% of all Poland 4,100internal staff worldwide. ArgenPna 3,550 Australia 3,500 Finland 3,000The global average is 4 people Hungary 2,885 Norway 2,340employed as internal staff per South Korea 2,032 Romaniabranch, and 10 per PrEA. This Czech Republic 1,472 1,440illustrates that the agency work Chile 1,348 Slovakia 1,254industry is still mostly composed of Portugal* 750small and medium-sized companies, Slovenia 420 Luxembourg* 307despite the presence of several large Greece 183multinationals operating worldwide. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 * figures for 200814
  • 14. The top 10 PrEAs worldwide accountedfor 29% of global annual sales revenues in 2009 ThE PlAyErSIn 2009 some of the main global Top 10 staffing companies in billions of $players continued to feel the impact 25.0of the economic crisis. Adecco, with$21.3 billion in total annual salesrevenues, remains the market leader. 21.3 20.0Randstad is the second largest PrEAwith $17.3 billion, followed by 17.3 16.7Manpower with $16.7 billion. 15.0 10.0 5.0 4.9 4.3 4.2 4.2 3.8 3.2 2.7 0 Adecco Randstad Manpower Allegis Kelly Recruit USG People Hays PLC Advantage Robert Half Group Services Staffingand Resourcing StaffService* Source: Staffing Industry Analysts 2009 - www.staffingindustry.com *Consolidated figures for Recruit Staffing and Staff Service 15
  • 15. Global total annual sales revenuestotaled €203 billionIn 2009, the global total annual Global annual sales revenues in billions of € *sales revenues for the agency workindustry amounted to €203 billion, 300a decline of 16% compared to 2008,reflecting the ongoing of the impactof the crisis on major economies, 250 256such as the USA and the UK. 243 233 200 203 191 150 157 160 147 150 130 100 83 50 0 1996 1998 1999 2002 2003 2004 2005 2006 2007 2008 2009 Source: Ciett national federations16
  • 16. In 2009 Japan and the USA are global agencywork market leaders by total annual sales revenues ThE PlAyErSIn 2009, Japan is the world leader Agency work sales revenues split per countrywith 24% of global annual sales. TheUSA represents 22% of the global Rest of Worldagency work market. The UK remains 15%the third largest market worldwidewith 12% of global total annual sales Japan 24%revenues. Europe accounts for 40% Brazil 4%of global total annual sales revenues,Asia/Pacific for 35%, and North Australia 4%America for 22%. Netherlands 5% Germany 6% USA 22% France 8% UK 12% Source: Ciett national federations 17
  • 17. Japan, the USA, and the UKare the three largest agency work markets in 2009Japan, the USA, and the UK togetheraccount for 52% of PrEAs worldwide, Comparison of the 3 largest agency work markets in the world72% of branches, 54% of internal Japan USA UKstaff, 61% of total annual salesrevenues, and 47% of agency workers Number of PrEAs 20,000 6,000 11,500in full-time equivalents. Number of branches 83,808 20,000 17,000 Number of agency workers 1,098,191 2,010,000 1,068,197The UK has the lowest “branchto PrEA ratio” and the highest Number of internal staff 185,000 120,000 95,865“internal staff to branch ratio”. Branch to PrEA ratio 4.2 3.3 1.5This can be explained by the highlevel of fragmentation of the UK Internal staff to branch ratio 3 6 5.6agency work market, characterised Agency worker to branch ratio 13 100.5 6.3by a majority of small privateemployment agencies that operate Agency worker to internal staff ratio 6 16.8 11.1locally. Japan has the lowest “agency Country’s share of total global annual sales revenues 24% 22% 12%worker to branch” and “agency AW penetration rate 1.7% 1.3% 3.6%worker to internal staff” ratios,and the USA the largest. Thesefigures must be assessed carefully,bearing in mind that there might This difference can also be partially 76% of the average annual hoursbe a significant amount of dormant explained by the fact that Japanese worked by a Japanese employee withagencies and branches in Japan. agency workers work an exceptional a full-time open-ended contract.18
  • 18. 2. Agency workers in numbers• nearly 9 million agency workers in full-time equivalents were employed in 2009.• The number of agency workers has risen by over 3.8 million since 1999.• In 2009 the European average penetration rate of agency work was 1.5% and the South American average 0.8%.• In 2009 the Japanese and American agency work penetration rates were respectively 1.7% and 1.3%.• Agency workers work nearly half as much as full- time permanent employees.• Most agency work assignments are more than one month long. 19
  • 19. 9 million agency workerswere employed in 2009In 2009 the total number of agency Daily average number of FTEs °workers worldwide amounted USA 2,010,000to nearly 9 million in full-time Japan UK 1,098,191 1,068,197equivalents, a decrease of 6% South Africa Brazil 924,499 902,000compared to 2008. Europe accounts Germany Colombia 625,000 530,000 France 447,348for 34%, North America for 23%, and Netherlands 212,651 Italy 162,000the Asia/Pacific region for 14%. Spain* 141,064 Australia 100,000 South Korea 83,775 Argentina 76,454The USA employs nearly as many Poland 71,914 Belgium 71,759agency workers in full-time Austria 57,230 Switzerland 56,950equivalents [2.01 million] than the Sweden 46,000 Macedonia 45,230second and third biggest suppliers Portugal* 45,000 Peru 42,500of agency workers combined, Czech Republic 35,625 Chile 29,112respectively Japan [1.1 million], and Romania 22,153 Hungary 22,153the UK [1.07 million]. Together, the Denmark Norway 21,227 20,186USA, Japan, and the UK account for Finland Uruguay* 20,000 15,00047% of all agency workers assigned Slovakia Bulgaria* 14,492 5,400worldwide. South Africa is the Greece Luxembourg* 5,087 4,300fourth largest market in the world Slovenia Lithuania 2,828 823with 924,499 agency workers in 0 500,000 1,000,000 1,500,000 2,000,000full-time equivalents, ahead of Brazil[902,000], Germany [625,000] and ° Full-time equivalents defined as the total number of hours worked by all agency workers in a country over a period of one year divided by the average number of hours worked over a period of one year by a worker with a full-time job with an open-ended contractColombia [550,000]. * figures for 200820
  • 20. The number of agency workershas increased by 3.8 million since 1999 AGEnCy worKErS In nUMbErSThe number of agency workers Number of agency workers [in daily FTEs / 1.000]worldwide increased from close to 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Austria 21 24 30 33 31 38 44 47 59 67 68 575.2 million full-time equivalents in Belgium 60 63 71 68 66 66 73 78 88 95 92 72 Bulgaria na na na na na na na na na na 5 51999 to nearly 9 million in 2009. Czech Republic Denmark na 7 na 7 na 8 na 10 na 10 na 11 na 13 na 17 na 21 na 17 35 21 36 18 Finland 9 8 9 11 11 12 14 16 18 28 32 20 France 458 515 604 602 570 555 570 586 603 638 604 447In the last ten years, the number of Germany Greece 246 na 276 na 328 na 341 na 318 na 330 na 385 na 444 na 580 na 715 8 760 8 625 5agency workers in Europe has greatly Hungary Ireland ns 9 ns 10 ns 25 ns 25 30 25 39 25 53 25 54 25 55 30 55* 35 55* 35* 22 35*increased, partially as a result of the Italy 10 26 69 67 82 132 154 157 184 222 225 162 EUroPE Lithuania na na na na na na na na na na na 1progressive liberalisation of certain Luxembourg Macedonia 2 na 3 na 4 na 4 na 4 na 4 na 4 na 4 na 5 2 5 2* 4 2* 4 5tightly regulated labour markets, Netherlands Norway 180 11 186 11 183 11 178 12 169 11 154 10 157 12 176 15 207 24 233 25 242 26 213 20notably in Italy, Germany, and the Poland Portugal ns 33 ns 45 ns 45 ns 45 ns 45 19 45 25 45 27 45 35 45 60 45 90 45 72 45Nordic countries, and the opening Romania Slovakia na ns na ns na ns na ns na ns na ns na 11 na na na na na na 30 14 22 14up of new markets in Central and Slovenia Spain na 110 na 133 na 133 na 126 na 123 na 123 na 124 na 130 na 141 na 160 3 141 3 141*Eastern Europe. Sweden Switzerland 18 30 24 34 42 39 38 38 37 37 29 36 30 41 32 49 37 61 59 70 59 69 46 57 UK 696 761 1,027 1,027 1,036 1,111 1,175 1,219 1,265 1,378 1,220 1,068 Subtotal Europe 1,900 2,126 2,629 2,625 2,605 2,739 2,955 3,120 3,460 3,917 3,885 3,214Outside Europe the number of Argentina 47 46 48 47 34 54 70 81 88 96 96 76 Australia na na na na na na na na na na na 100agency workers has nearly doubled Brazil na na na na na na na na 800 859 876 902 rEST oF worlD Chile na na na na na na na na 86 33 30 29between 1999 and 2009, on Colombia na na na na na na na na na na na 550 Japan 307 395 537 612 693 743 890 1,060 1,220 1,330 1,400 1,098account of the gradual deregulation Mexico na na na na na na na na na 25 24 24* Peru na na na na na na na na na na na 43of the Japanese labour market, and South Africa ns ns ns ns ns ns ns 300 300 300 500 924 South Korea ns ns ns ns ns ns 50 57 66 75 78 84the advent of emerging markets, Uruguay USA na 2,530 na 2,600 na 2,700 na 2,300 na 2,160 na 2,380 na 2,670 na 2,910 na 2,960 na 2,960 15 2,660 na 2,010such as Brazil and South Africa, on Subtotal rest of world 2,884 3,041 3,285 2,959 2,887 3,177 3,680 4,408 5,520 5,678 5,679 5,775the global scene. ToTAl worlD 4,784 5,167 5,914 5,584 5,492 5,916 6,635 7,528 8,980 9,595 9,564 8,989 ns = non significant; nlr = not legally recognised; na = not available; * = estimated 21
  • 21. Outside Europe agencywork penetration rates vary widelyAgency work penetration rates are Agency work penetration rates outside Europe in 2009*determined by the level of maturityof the market in which they evolve. 7.0%Mature agency work markets are 6.5%characterised by high penetration 6.0%rates, indicating a potent blend oflarge user bases, strong economic 5.0%growth, and generally relevantlyregulated markets. At a mere 1.1% 4.0%of the total regional active workingpopulation, the relatively lowpenetration rate of agency work in 3.0% 2.8%South American countries revealsthe region’s considerable potential 2.0% 1.7%for growth. 1.3% 1.5% 1.0% 1.0% 0.4% 0.4% 0.4% 0.0% South Africa Colombia Japan USA Brazil Chile Argentina South Korea EU Average * Defined as the number of full-time equivalents - as supplied by Ciett National Federations - divided by the total active working population - as published by the ILO22
  • 22. The average European agencywork penetration dipped from 2007 to 2009 AGEnCy worKErS In nUMbErSIn Europe, the level of regulation and Agency work penetration rates in Europe since 1998degree of economic development 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009explain the differences in pace of Austria 0.6% 0.7% 0.8% 0.9% 0.8% 1.0% 1.2% 1.2% 1.5% 1.7% 2.0% 1.4%growth of the agency work industry. Belgium 1.6% 1.6% 1.7% 1.7% 1.6% 1.6% 1.8% 1.9% 2.1% 2.2% 2.1% 1.7% Bulgaria na na na na na na na na na na 0.2% naRecently, countries such as Germany Czech Republic na na na na na na na na na na 0.7% 0.7%and Poland have revealed their Denmark 0.3% 0.3% 0.3% 0.4% 0.4% 0.4% 0.5% 0.6% 0.8% 0.6% 0.8% 0.6%potential, but each for very different Finland 0.4% 0.3% 0.4% 0.5% 0.5% 0.5% 0.6% 0.7% 0.7% 1.1% 1.3% 0.8% France 2.1% 2.3% 2.6% 2.5% 2.4% 2.3% 2.4% 2.4% 2.4% 2.5% 2.3% 1.7%reasons: Germany as a heavily- Germany 0.6% 0.7% 0.8% 0.8% 0.7% 0.8% 0.9% 1.0% 1.3% 1.6% 2.0% 1.6%industrialised economy, slowly Greece na na na na na na na na na 0.2% 0.2% 0.1% Hungary ns ns ns ns 0.8% 1.0% 1.4% 1.4% 1.4% 1.4% 1.4% 0.6%freeing itself of very strict regulatory Ireland 0.6% 0.6% 1.5% 1.5% 1.4% 1.4% 1.4% 1.3% 1.5% 1.7% 1.7% nameasures, and Poland as a budding Italy 0.0% 0.1% 0.3% 0.3% 0.4% 0.6% 0.7% 0.7% 0.7% 1.0% 0.9% 0.7%regional leader, rapidly catching up Luxembourg 1.2% 1.7% 1.9% 2.0% 2.2% 2.3% 2.1% 2.3% 2.4% 2.4% 2.0% na Netherlands 2.4% 2.5% 2.3% 2.2% 2.1% 1.9% 1.9% 2.2% 2.5% 2.8% 2.9% 2.5%its Western European counterparts. Norway 0.5% 0.5% 0.5% 0.5% 0.5% 0.4% 0.5% 0.7% 1.0% 1.0% 1.0% 0.8%The steady growth from 1996 Poland ns ns ns ns ns 0.1% 0.2% 0.2% 0.3% 0.4% 0.6% 0.3% Portugal 0.7% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% nato 2007 halted abruptly in 2008 Romania na na na na na na na na na na 0.3% 0.2%and continued its decline with a Slovakia na na na na na na na na na na 0.6% 0.6%penetration rate drop of 0.2% across Slovenia na na na na na na na na na na 0.3% 0.3% Spain 0.8% 0.9% 0.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.8% 0.7% naEurope in 2009. Sweden 0.5% 0.6% 1.0% 0.9% 0.9% 0.7% 0.7% 0.7% 0.8% 1.3% 1.3% 1.0% Switzerland 0.8% 0.9% 1.0% 1.0% 0.9% 0.9% 1.0% 1.2% 1.5% 1.7% 1.7% 1.4% UK 2.6% 2.8% 3.8% 3.8% 3.8% 4.0% 4.2% 4.3% 4.5% 4.8% 4.1% 3.6% weighted average 1.1% 1.2% 1.5% 1.5% 1.4% 1.5% 1.6% 1.7% 1.8% 2.0% 1.7% 1.5% ns = non significant ; nlr = not legally recognised ; na = not available 23
  • 23. The European average agencywork penetration rate was 1.5% in 2009The European average agency work Agency work penetration rates in Europe in 2009*penetration rate fell from 1.7% in2008 to 1.5% in 2009, notably dueto the sustained impact of the 4.0%economic crisis. Nevertheless, this 3.6%average hides enormous differences 3.5%from country to country, ranging 2.9%from 3.6% in the UK to 0.1% in 3.0%Greece. Mature markets in Western 2.5%Europe, namely the UK, France,Germany and the Benelux countries, 2.0% 1.7% 1.7% 1.6%are all above average; whereas the 1.4% 1.4% European average penetration rate : 1.5% 1.5%newer markets in Southern and 1.0%Eastern Europe are all below average, 1.0% 0.9% 0.8% 0.8% 0.8% 0.7% 0.7%indicating that they still have room 0.6% 0.6% 0.6% 0.4% 0.5%to grow. 0.3% 0.29% 0.1% 0.0% UK Netherlands France Belgium Germany Austria Switzerland Sweden Portugal Norway Finland Macedonia Czech Republic Italy Denmark Slovakia Hungary Poland Slovenia Romania Greece * Defined as the number of full-time equivalents - as supplied by Ciett National Federations - divided by the total active working population - as published by the ILO24
  • 24. Penetration ratein major markets fell in 2009 AGEnCy worKErS In nUMbErSIn 2009, the European and American Comparison of European, Japanese andpenetration rates fell to 1.4% and American agency work penetration rates1.3% respectively, reflecting the 2.2%sustained impact of the economic 2.1%crisis on these markets, whilst the 2.0% 1.9% 2.0%Japanese penetration also fell 1.7%, 1.8% 1.8% 1.7%although it entered the crisis later 1.7% 1.6% 1.7% 1.6% 1.5%than the USA and Europe. 1.5% 1.5% 1.4% 1.3% 1.0% 1.1% 1.0% 0.8% 0.5% 0.5% 0.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 US Japan Europe Source: Ciett national federations 25
  • 25. Agency workers work nearly half as many hourson a yearly basis as full-time permanent employeesAgency workers tend to work less Average number of hours worked *during one year than a worker Sweden 1,625 1,627with a full-time, open-ended Argentina 1,820 1,589contract - except for the notable Japan 1,772 1,354exception of Sweden. From country Brazil 1,320 1,689to country, the average number of Australia 1,200 1,721hours worked by an agency worker Mexico 1,120 1,893compared to the average number Slovakia 1,021 1,769of hours worked by a permanent Hungary 840 1,989 2,121full-time employee varies greatly, Greece 730 1,389from less than 15% in the Czech Netherlands 697 1,902Republic to equivalent in Sweden. Chile 690 Switzerland 1,643 465 Italy 1,802 450 1,422 Norway 419 1,969 Poland 382 1,542 France 370 1,992 Czech Republic 288 1,568 Belgium 251 0 500 1,000 1,500 2,000 Average per full-time permanent employee Average per agency worker * By an individual during one year Sources : Ciett National Federations, ILO 200926
  • 26. Most agency work assignmentsare more than one month long AGEnCy worKErS In nUMbErSIn most countries, the average Average length of agency work assignments *length of assignment of an agency South Korea 34% 66%worker exceeds one month, and Sweden 4% 24% 72%often even exceeds three, the Germany 7% 29% 64% Chile 9% 39% 52%notable exceptions being Italy [66%] Peru 10% 27% 63%and Poland [63%], where more than Japan 12% 23% 65%half of the assignments are less than South Africa 16% 23% 61% Macedonia 17% 38% 45%one month long. All assignments Greece 18% 39% 43%in South Korea are over one month Austria 19% 17% 64%long, and only 4% of assignments in Australia 24% 31% 45% Brazil 25% 45% 30%Sweden last for less than a month. Argentina 25% 35% 40% Netherlands 27% 30% 43% Czech Republic 27% 38% 35% Switzerland 30% 30% 40% USA 32% 18% 50% Mexico 34% 12% 54% Belgium 37% 19% 44% France 45% 25% 30% Poland 63% 37% Italy 66% 23% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Short-term [< 1 month] Medium-term [1 – 3 months] Long-term [3 months] * The length of an assignment refers to the duration spent executing a specific job in one single company. A contract can be renewed several times, depending on the legal obligations of the country in question, to fulfil one single assignment. If the worker changes function in the same company, or executes the same job in another company, then the assignment is said to have changed. 27
  • 27. 3. The profile of agency workers• Differences in gender balance depend on the • The motive to work via an agency is usually to socio-economic fabric of a country. gain work experience.• Three in five agency workers are aged less • A significant proportion of agency workers do than 30. not seek a permanent employment.• nearly three in four agency workers have at • Most agency workers are satisfied with their best finished their secondary education. job.• Agency work is mostly used in the manufacturing and services sectors.28
  • 28. a. General trends 29
  • 29. Differences in gender balance dependon the socio-economic fabric of a countryFrom country to country, differences Agency workers’ gender balancein gender balance in agencywork are determined by the Australia 30% 70% Japan 34% 66%particular socio-economic fabric Finland 34% 66% Denmark 39% 61%and economic history of each China 40% 60%country, as well as by the sectors Sweden 40% 60% Colombia 42% 58%allowed to use agency work. More UK 42% 58%services-oriented markets tend Greece 44% 56% USA 44% 56%to employ more women, such as Brazil 46% 54% Czech Republic 48% 52%Sweden [60% of women and 57% Poland 48% 52%in the services sector], whereas Chile 49% 51% Norway 51% 49%markets with a strong industrial fibre Romania 52% 49%usually employ more men, such as Italy South Africa 52% 52% 48% 48%Germany [70% of men and 48% in Netherlands 53% 47% Mexico 54% 46%the manufacturing sector]. Hungary 54% 46% Slovenia 56% 44% Slovakia 57% 43% Belgium 58% 42% Macedonia 66% 34% Germany 70% 30% France 71% 29% Switzerland 75% 25% Austria 80% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Male Female30
  • 30. Most agency workersare aged below 30 ThE ProFIlE oF AGEnCy worKErSOver-represented in the agency Age distribution of agency workerswork sector, when compared to the China 30% 30% 30% 10%total active working population, Macedonia 0% 9% 22% 45% 24%most agency workers are aged France 3% 26% 21% 34% 16% USA 5% 13% 16% 36% 32%below 30. Agency work often serves Sweden 5% 21% 26% 31% 17%as a first professional experience for Romania 6% 29% 23% 33% 8%first-time entrants into the labour Italy 6% 27% 25% 34% 8%market, providing them with a Slovakia 7% 24% 30% 24% 12%valuable initial experience or serving Slovenia 7% 20% 34% 34% 6% 7% 17% 16% 38% 22%as a stepping-stone to permanent Germany Colombia 8% 21% 34% 30% 12%employment. The three notable 8% 31% 34% 21% 6% Greeceexceptions to this trend are the Czech Republic 8% 28% 21% 25% 18%USA [68% over 30], Germany [60% Japan 8.3% 37% 26.9% 13% 14,8%over 30], and Macedonia [69% over Chile 9% 28% 24% 27% 12%30]. This can be explained by the Uruguay 10% 25% 40% 20% 5% 10% 30% 15% 30% 15%fact that in some of these countries Switzerland Mexico 10% 33% 26% 23% 8%agency work is culturally accepted 10% 27% 19% 32% 12% Belgiumas a viable alternative to permanent South Africa 11% 40% 39% 6% 4%employment. Netherlands 15% 32% 15% 26% 13% Poland 17% 33% 26% 18% 7% Brazil 25% 20% 30% 15% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% < 21 21 - 25 26 - 30 31 - 45 > 45 31
  • 31. Most agency workershave only school-leaving qualificationIn most countries, the majority Initial education level of agency workersof agency workers have a low to 100% 5% 5% 5% 5%medium initial education level. On 14% 15% 10% 11% 90% 20% 19%average, 51% of agency workers 31% 27% 31% 25% 32% 25%worldwide have finished secondary 80% 40% 39% 46%school, and 23% have not. Spain 49% 50% 49% 39% 70% 51%[56%] and the Czech Republic [70%] 52%are the only countries where a 60% 66%majority of agency workers have 85% 53% 40% 50%not completed their secondary 80% 75% 42% 42% 25% 70%education. Agency work can play 40% 58% 25% 63%an important role in helping these 50% 70% 30% 40%low-skilled workers enter the 52% 48% 56%labour market and gain valuable 20% 44% 35% 36% 37%experience. 26% 26% 27% 28% 24% 10% 9% 10% 10% 10% 10% 10% 6% 6% 2% 3% 0% Japan Norway Chile Greece Finland Australia Portugal* South Africa Sweden Uruguay Switzerland Bulgaria USA Belgium Netherlands Luxembourg* UK Brazil Hungary Spain* Czech Republic Low [not completed secondary education] Medium [completed secondary education] High [completed higher education] * figures for 200832
  • 32. Sectoral distributionof agency work in Europe ThE ProFIlE oF AGEnCy worKErSReflecting the ongoing mutations Sectoral distribution of agency work use in Europeof the European economies, the 100% 4% 2% 1% 3% 1% 4% 2% 9% 1% 4% 1% 2% 5% 9% 1%sectoral distribution of agency work 9% 2% 8% 2% 2% 3% 3% 14% 12% 90% 21% 1% 3% 12%in Europe has seen a recent trend 23% 2% 20% 23% 2% 25%away from usage in the industrial 80% 18% 0% 20% 40% 8% 10% 12% 2% 0%sector [30% average], towards a 9% 70%growing use in the services sector 48% 53% 49% 27% 62% 22% 6% 15%[45% average]. Manufacturing 60% 1% 30% 57% 37%remains an important user of agency 90% 10% 40% 50%work in traditionally industrial 3% 67%economies, such as Poland [70%] 40% 64% 7%and Hungary [61%]. Czech Republic 40% 25% 70% 30% 39% 61%[12%] and the Netherlands [10%] 52% 25% 46%make important use of agency 20% 38% 39% 41% 33% 35%work in public administration, as 29% 10% 21%do Luxembourg [27%] and France 10% 10% 11% 12% 15% 9%[23%] in the construction sector. 0% Norway Greece Bulgaria* Luxembourg* Denmark* Portugal* Netherlands Sweden Spain* Switzerland Belgium France Italy Germany Czech Republic Hungary* PolandHungary is the only country to makesignificant use of agency work in theagricultural sector [12%]. Manufacturing Services Construction Public Administration Agriculture Other * figures for 2008 33
  • 33. Sectoral distributionoutside EuropePeru [10%] makes important use of Sectoral distribution of agency work outside Europeagency work in the public sector. 100% 1%Construction is an important user 9% 16% 8% 4% 1% 13%of agency work in South Africa 90% 3% 16% 15% 0% 3% 16% 12%[17%]. More than three in four 2% 4% 3% 7% 3%Chilean agency workers work in the 80% 10% 4%services sector, and 42% of South 2% 2% 10% 70% 17% 22%Korean agency workers work in the 0% 43%manufacturing sector. 60% 44% 4% 57% 50% 78% 43% 22% 55% 38% 40% 30% 20% 42% 38% 33% 25% 27% 10% 23% 15% 10% 0% Chile Brazil South Africa Peru Japan Mexico Colombia South Korea Manufacturing Services Construction Public Administration Agriculture Other34
  • 34. ThE ProFIlE oF AGEnCy worKErSb. Agency workers’ motives and satisfaction 35
  • 35. Outside Europe the motive to work via an agencyis usually to find a permanent job or work flexiblyThe main motives to work as an Reasons to work as an agency worker outside Europeagency worker are generally work South Africa 50% - Japan 70% 65% 45%and career-related. It is often to 39% 60% 40% -find a permanent position [59% in 50% 29%the USA], but can also be to gain 40% 30% -additional income [68% in Brazil]. 30% 20% - 19% 14%Gaining access to training is an 20% 11% 10% -important reason to work as an 10% 10% 10% 10% 3%agency worker in Brazil [41%] and 0% 0% - Work in a flexible way Had no other choice Get information Gain work experience Find permanent job Gain additional incomes Gain access to training Find permanent job Work in a flexible way Gain work experience Gain access to trainingthe USA [40%], but not so in SouthAfrica [10%] or Japan [3%]. Forthose seeking to balance personaland professional life, the inherent Brazil USA 68%flexibility that agency work offers 70% 70% 59% 60% 60%is cited as an important motive in 50% 52% 50% 41% 42% 40% 40%Japan [45%] and the USA [41%], two 40% 41% 39% 40% 32% 32%countries with a firmly established 30% 30% 25% 19% 20% 18% 20%agency work industry. 10% 10% 0% 0% Find permanent job Work in a flexible way Gain work experience Gain access to training Had no other choice Gain additional incomes Get information Gain additional incomes Gain work experience Get information Gain access to training Find permanent job Had no other choice Work in a flexible way36
  • 36. In Europe the main motive to work via an agency isalso to find a permanent job or gain work experience ThE ProFIlE oF AGEnCy worKErSIn most European countries the Reasons to work as an agency worker in Europemain motive is - as outside Europe - Netherlands Czech Republic 30%to find a permanent position [28% 28% 35% 32%in the Netherlands] or to gain 25% 30%work experience [30% in Finland]. 20% 18% 25% 20%Other non-work or career-related 15% 16% 15%motives exist to engage in agency 10% 6% 10% 12% 12% 9% 8%work, often to obtain additional 5% 5% 3% 1%incomes [38% in Finland], but also to 0% 0% Find permanent job Work in a flexible way Gain work experience Gain access to training Find permanent job Had no other choice Gain work experience Gain additional incomes Get information Work in a flexible way Gain access to trainingachieve a better work-life balance byworking in a flexible way [28% in theNetherlands]. France Finland 60% 40% 40% 50% 48% 47% 40% 38% 30% 30% 22% 30% 20% 15% 20% 10% 9% 5% 10% 3% 2% 0% 0% It suits current needs way of life Had no other choice To gain experience Access to training To get permanent contract Because of my age Agency work the easiest way to get a job Work in a flexible way Gain additional incomes Gain work experience 37
  • 37. However a significant proportion of agency workersdo not seek a permanent employmentIn several countries, a considerable Percentage of agency workers not looking for a permanent jobnumber of agency workers donot seek a permanent position, 60% 58%notably in Japan with 58%, theNetherlands with 44% and Australia 50%with 35%. Whether it is to find theright balance between private 44%and professional life, or to obtain 40%additional income or access to 35%training, agency work is seen as a 30%practical answer to match different 30%aspirations to flexibility. 25% 23% 20% 20% 14% 10% 0% Japan Netherlands Australia Switzerland Brazil USA Norway Finland38
  • 38. In France agency workis seen as enhancing employability ThE ProFIlE oF AGEnCy worKErSIn France, the most cited benefits of Benefits of working as an agency worker in Franceworking as an agency worker are the“capacity to adapt” [87%] and the Capacity to adapt 87%relations held with colleagues [87%].Most French agency workers are Relations with colleagues 87%convinced that agency work allowsthem to acquire new skills [72%] Professional experience 85%and the professional experience[85%] they need to improve theiremployability, thereby ultimately Teamwork experience 85%providing them with more workopportunities. Autonomy 84% Knowledge of firm 82% Sense of responsibility 79% Acquisition of new skills 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: OME study: Regards croisés sur l’intérim 2010 39
  • 39. In the USA agency work is recognisedas an effective means of searching for a jobIn the USA, the most cited benefit Benefits of using agency work in the USAof working as an agency worker is“career advice or coaching” [20%]. Career advice or coaching 20%This illustrates the key role that Availability of jobsagencies play in the triangular work 17%relationship, acting as a mentor for Easier for job applicant 14%the agency worker. The next mostmentioned positive attributes are Access to higher-quality jobs 13%the “availability of jobs” [17%] andthe fact that it is “easier for [the] job Shorter length of job search 11%applicant” [14%]. Flexibility in job opportunities 9% Immediate compensation 7% Personal touch and guidance 5% Prescreening of opportunities 4% Qualified job leads 1% 0% 5% 10% 15% 20% Source: American Staffing Association 200840
  • 40. Agency work is seen as offeringthe right balance between work and private life ThE ProFIlE oF AGEnCy worKErSIn a poll of the general public taken Agrees with the statement: “Agency work provides a better work life balance” *in seven European countries, the UKis seen to believe most firmly that 70% 66%agency work offers a better balancebetween work and private life [66%], 60% 60% 58%followed by Poland [60%], and theNetherlands [58%] 52% 50% 46% 40% 38% 35% 35% 30% 20% 10% 0% United Poland Netherlands Belgium France Italy Germany Spain Kingdom *5373 people were polled in Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK. Data was weighted demographically according to age, sex and occupational status. Source: OME study :Regards croisés sur l’intérim 2010 41
  • 41. Agency work is acceptedas a desirable form of work83% of the UK general public Agrees with the statement: “Would you recommend agency work to family or friends?” *would recommend agency workto family or friends according to a 90%recent survey. This positive trend is 83%displayed throughout the surveyed 80% 76% 74%countries with Poland [76%], 69% 70%Belgium [74%], and France [69%] all 62%willing to recommend agency work 60%to people they know. 55% 49% 50% 42% 40% 30% 20% 10% 0% United Poland Belgium France Netherlands Italy Spain Germany Kingdom *5373 people were polled in Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK. Data was weighted demographically according to age, sex and occupational status. Source: OME study: Regards croisés sur l’intérim 201042
  • 42. Most agency workers in the UKare satisfied with their job ThE ProFIlE oF AGEnCy worKErSMore than four in five agency Satisfaction of agency workers in the UKworkers in the UK reported that theywere “very” or “fairly” satisfied with Very dissatisfiedworking via an agency, and less than Fairly dissatisfied 3%one in eight said they were “fairly” 9%or “very” dissatisfied with it. This Neithercounters the popular misconception 7%that agency workers are generallydissatisfied with the work they findthrough an agency, and explains theimportant proportion of agencyworkers who wish to continue towork in a flexible way. Very satisfied 40% Fairly satisfied 41% Source: REC & BERR Study 2008 43
  • 43. In the Netherlands most agency workersare satisfied with the quality of their work72% of agency workers in the Satisfaction of agency workers in the NetherlandsNetherlands reported that they 100%were “satisfied” or “very satisfied” 3% 3% 5% 5% 6% 7%with the content of their work, and 90% 11% 11%64% with the variation. The wages 12%were judged “satisfying” or “very 80% 18%satisfying” by 61%, as were the 20% 23% 70%number of working days by 80%. Thispartially explains why 44% of agency 60%workers in the Netherlands do notseek a permanent position, and 50% 59% 52%prefer to work as temporary agency 46% 40%workers. 49% 30% 20% 10% 21% 20% 18% 12% 0% Number of working hours Content of work Variation in work Wage per week Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied Source: ABU/ECORYS 200944
  • 44. In France agency workers have a good relationshipwith their employment agency ThE ProFIlE oF AGEnCy worKErS87% of agency workers in France Satisfaction of agency workers in Francereported that they were “satisfied” 100% 4% 4% 4%or “very satisfied” with the 5% 7% 10% 8% 9%relationship they had with their 90% 13%employment agency. 91% were 13% 80%happy with the content of theirwork. The wages were judged 70%“satisfying” or “very satisfying” 44%by 75%, as the balance between 60% 55% 61% 48%professional and private life [81%]. 50% 53% 40% 30% 43% 20% 31% 30% 29% 10% 23% 0% Relationship with Balance between Content of work Delay between Wages employment agency professional and private life placements Very satisfied Satisfied Dissatisfied Very dissatisfied Source: OME study :Regards croisés sur l’intérim 2010 45
  • 45. 4. Agency work’s contribution to a better functioning labour market• Agency work facilitates transitions in the • The higher the agency work penetration rate, labour market. the lower the level of undeclared work.• Agency work contributes to reducing • Vulnerable target groups use agency work as unemployment especially by serving as a a means of entering the labour market. stepping-stone into the labour market.• More people are employed after working as an agency worker than before.46
  • 46. a. Transitions 47
  • 47. Agency work facilitates transitionsin the labour marketAgency work broadens the range of Transitions in the labour marketwork solutions available to workersto meet their lifestyle choices orpersonal constraints at every step oftheir professional lives. Intrinsicallyflexible, agency work can serve as 1st time Experienced laid-offa stop-gap economic measure, a Student Pensioner entrant worker workermeans of enhancing employability,or improving work-life balance. • Finance • Provide • Provide new • Facilitate • Provide extra“Factors helping to drive the growth education temporary opportunities transitions financialin TAW include its active use to whilst assignments to evolve and from one job revenuesfacilitate the re-engagement of studying leading to a improve life to another permanent conditions through • Improvelong-term unemployed into work, contract outplacement work-lifeand a growth in the labour force • Provide a flexible services balanceparticipation of people that need or • Gain a first working solutionprefer temporary work.” * professional to meet familial experience responsibilities* Source: Eurofound - Temporary Agency Workand Collective Bargaining in the EU | 200948
  • 48. Agency work contributesto reducing unemployment AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETBy serving as labour market Agency work penetration rate and unemployment ratesintermediaries, and improving USA UKthe matching of workers with 2.0% 6.0% 1.8%jobs, PrEAs contribute to reducing 1.6% 5.0%unemployment - both frictional and 1.4% 4.0% 1.2%long-term - and help people enter, 1.0% 3.0%and re-enter, the labour market. 0.8% 2.0% 0.6% 0.4% 1.0%Frictional unemployment 0.2% 0.0% 0.0%By rapidly placing agency workers 97 98 99 00 01 02 03 04 05 06 07 08 09 97 98 99 00 01 02 03 04 05 06 07 08 09on assignments, PrEAs reduce thefrictional rate of unemployment - i.e. 2.5% JP 3.0% FRthe period of inactivity between 2.0% 2.5%jobs - allowing people to remain 1.5% 2.0%active, thereby enhancing their skills 1.5%and experience, and helping them to 1.0% 1.0%quickly find a new job. 0.5% 0.5%Long-term unemployment 0.0% 0.0%Working via an agency allows the 97 98 99 00 01 02 03 04 05 06 07 08 09 97 98 99 00 01 02 03 04 05 06 07 08 09long-term unemployed to regain AW penetration Rate Unemployment Rateself-confidence, acquire new skills,and demonstrate their capacities to Source : Ciett National Federations, IMF 2010potential employers. 49
  • 49. b. Job creation50
  • 50. Less people are unemployedafter working as an agency worker than before AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETMany agency workers are officially Unemployed before & after agency workregistered as “unemployed” before 70%working with an agency [37% 65%average]. This proportion falls 60%to less than half that level after 56%working as an agency worker [15%average]. Economists Lawrence 50% 46%Katz of Harvard University and Alan 43%Krueger of Princeton University 40%assert that the agency work industry 34%was responsible for up to 40% of the 31% 30% 30%drastic reduction in unemployment 30% 25%witnessed in the USA in the 1990s.This illustrates the double effect 20% 20% 19% 17% 17% 18%of agency work’s stepping-stone 15%function: first, from unemployment 10% 9% 12% 8% 10%to work, and second, from a 6%temporary contract to a permanent beforeone. after 0% Czech South Africa Germany Norway France Greece Switzerland Sweden Brazil Netherlands Republic * % of agency workers that are officially registered as unemployed before and 12 months after temping 51
  • 51. More people are employedafter working as an agency worker than beforeOn average, the proportion of Employed before & after agency workthose in employment before [29%] 90%and after [59%] having workedas an agency worker is more 80% 80% 77%than doubled. This supports the 74% 71%argument that agency work serves as 70% 69%a stepping-stone, especially for first- 60%time entrants to the labour market, 60% 56%enhancing worker employability,by proposing job assignments and 50% 48% 45% 44%vocational training. 43% 40% 36% 33% 30% 20% 20% 18% 10% before 6% after 0% Switzerland Belgium Luxembourg Germany Czech Republic Norway Portugal France * % of agency workers that are employed (either with a temp, fixed-term or open-ended contracts) before and 12 months after temping52
  • 52. Agency workis an effective way to land a first job AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETAccording to a poll carried out Agrees with the statement: “Agency work is an effective way to land a first job” *among 5373 European citizens, theoverwhelming majority of people 100%believe that agency work is a good 92% 90%way to enter the job market for the 86% 85% 84% 82%first time. The United Kingdom and 80% 80%Belgium hold this view most strongly 71% 70%with 93% and 86% respectivelyagreeing that temporary agency 60% 59%work is an effective means of getting 50%a first job. Even in Germany, themost sceptical country, 59% believe 40%temporary agency work to be 30%effective. 20% 10% 0% United Kingdom Belgium Poland France Spain Netherlands Italy Germany *5373 people were polled in Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK. Data was weighted demographically according to age, sex and occupational status. Source: OME study :Regards croisés sur l’intérim 2010 53
  • 53. Agency work is an effective wayof finding permanent work.Temporary agency work helps Agrees with the statement: “Agency work is an effective way of finding a permanent contract” *people find permanent work. Astudy carried shows that across 100%Europe there is acceptance of the 90% 90%fact that temporary employmentagencies are the best way of 80% 78% 77%securing permanent work. In the 69% 70%United Kingdom 90% agreed, in theNetherlands [78%] and Poland [77%] 60% 61% 52% 50% 43% 40% 40% 30% 20% 10% 0% United Kingdom Netherlands Poland Belgium France Spain Germany Italy *5373 people were polled in Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK. Data was weighted demographically according to age, sex and occupational status. Source: OME study :Regards croisés sur l’intérim 201054
  • 54. Temporary work agenciesare the best channel to find permanent work AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETA Study from the Netherlands shows How do temporary employees find permanent work in the Netherlands?that temporary agency work is themost effective means of making the Temporary work agencies 29%transition from temporary work Advertisements in newspapers and magazines 14%into a permanent contract. 29% ofthose surveyed used temporary unsolicited job applications 14%employment agencies for this via friends, family, acquaintances, colleagues 14%purpose compared with adverts innewspapers and magazines [14%] Internet 8%and unsolicited applications [14%] recruitment and selection agency 4% centre for work and Income 2% secondment agency 2% via school, education/training programme, internship 2% Job/career fair 1% re-integration company 0% Other 10% Source: ABU/ECORYS 2009 55
  • 55. Temp-to-hire conversion rates in the USAvary according to the segmentThe median temp-to-hire Temp-to-hire conversion rate in the USA*conversion rate in the USA is 40% 40%20%. This confirms agency work’sacknowledged stepping-stonefunction, whereby it facilitates 35%transitions from a temporary 30%contract to a permanent one. 30%However, conversion rates canvary widely according to the 25%segment. Commercial agency work 20% 20% 20%has a much higher temp-to-hire 20%conversion rate than professionalagency work. The companies that 15%report the highest median rate ofconversion - 40% - derive most of 10% 10%their revenue from the office/clericalsegment. At the other end of the 5%spectrum, companies that derive amajority of their revenue from the 0%health sector report a median temp- Office / Clerical Industrial IT Finance / Acc Tech / Eng Healthcareto-hire conversion rate of 10%. * % of agency workers in the USA that get an open-ended contract after temping Source: Staffing Industry Analysts 2008 - www.staffingindustry.com56
  • 56. The higher the agency work penetration rate,the lower the level of undeclared work AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETThere appears to be an inverse Agency work penetration rates and undeclared work as a percentage of GDPcorrelation between penetrationrate of agency work and level of 4.0%undeclared work. By serving as alegal alternative in sectors often 3.5% UKplagued by illegal labour, agencywork can bring to the labour market 3.0%thousands previously illegallyemployed, and hence serve as 2.5% NLa means of fighting undeclaredwork. Working via an agency allows 2.0%workers to take full advantage FR BEof all the legal protection and 1.5% DEenforcement mechanisms available,unlike the often insecure and 1.0% SEpotentially risky work available FI ITthrough illegal channels. 0.5% GR 0.0% 0% 5% 10% 15% 20% 25% 30% 35% Sources: EuroStat, Ciett National Federations, Bain analysis 57
  • 57. In Italy the lifting of restrictions on agency workhelped curb undeclared workIt was only in 1997, with the “Treu Agency work and undeclared work rates in Italypackage”, that agency work waslegally recognised in Italy. Sincethen, additional regulatory changes 15.0% Lifting of sectoral bans Lifting of further 1.0%were introduced to further liberalise restrictions to AWthe Italian agency work industry: in 14.5% 0.9%2000, with the opening up of the 0.8%agricultural, construction and public 14.0%sectors, and in 2003, with the “Biagi 0.7%law”. In 2005, a study conducted 13.5% 0.6%by the Italian National Instituteof Statistics demonstrated that 13.0% 0.5%agency work played a key role in the Legal recognition 0.4%reduction of undeclared work. 12.5% of AW 0.3% 12.0% 0.2% 11.5% 0.1% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Undeclared work rate AW penetration rate Source: Confinterim.it, EuroStat, Instuto Nazionale di Statistica, LitSearch58
  • 58. Agency work facilitates quality transitionsthrough skills upgrading AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETIn many EU countries, the agencywork industry has developed specific Training programmes provided to agency workerstraining schemes to facilitate FR BE NL ES ITaccess to vocational trainingfor agency workers. In seven EU Number of trained agency workers [x 1.000] 270,0 19,6 138,7 10,9 204,2countries - Austria, Belgium, France, % of trained agency workers 12,3% 3,6% 19,0% 1,4% 35,6%Italy, Luxembourg, Spain, and theNetherlands - sectoral bi-partite Number of training hours [x 1.000] 10.110 303 760 1.221training funds have been set up. Number of training hours per trained agencyCountries with more long-term worker 47,4 15,4 69,8 6,0training programmes tend to train Amount invested in training by temporary work 331 4,7 35 4,8 149less temporary agency workers than agencies [x 1.000.000]countries with short-term training Amount invested per trained agency worker (€) 1.225,9 239,7 252,3 440,4 729,6programmes. This reflects the factthat the agency work industry Amount invested in training in % of wages 2,15% 1 0,50% 2 1,02% 1,25%establishes training schemes tosuit the specific needs of the labourmarket. It is also generally theagency that takes the initiative totrain a worker. 1 - Maximum contribution rate 2 - Minimum contribution rate as determined by collective labour agreement Source : IDEA Consult 2008 59
  • 59. c. Inclusion & diversity
  • 60. The number of agency workersover 50 is increasing in Italy AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETWorkers over 50 are under- Age distribution of agency workers in Italy in 2004, 2006 & 2008represented in the Italian agencywork population. However, theirnumbers are continually on the 30% 28%rise. In 2004, 2006 and 2008, the 27% 27% 27%proportion of agency workers aged 25%over 50 has steadily increased from 23% 22%3% to 4% to 5%. 20% 19% 19% 18% “Agency work offers groups such asmigrant workers, women returning 15% 16%from childcare breaks, disabled and 13% 13% 14% 12%unemployed people across to the 11%labour market. In principle, agency 10%work can help workers developtheir skills and experience, thereby 2004 5% 5% 4%offering pathways into more secure 2006 3% 2008employment.” * 0%* Source: Eurofound - Temporary Agency Work <24 25 - 29 30 - 34 35 - 39 40 - 49 >50and Collective Bargaining in the EU | 2009 Source : Ebitemp 2009 61
  • 61. In France the proportionof older agency workers keeps on increasingIn France, the number of agency Percentage of agency workers aged 50 & over in Franceworkers aged over 50 increases 9.0%every year, and has more than 8.6%doubled between 1996 [4.1%] and 8.0% 8.0%2009 [8.6%]. This trend mirrors both 7.5%the ongoing demographic crunch, 7.0% 6.7% 6.9%with an ever ageing population, 6.1% 6.4%and the desire of older workers 6.0% 5.7% 5.8%to remain active. The agency 5.3% 4.9%work industry helps these older 5.0% 4.4%workers to remain in the labour 4.1% 4.3% 4.0%market, providing them with moreflexible opportunities to meet their 3.0%expectations. 2.0% 1.0% 0.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source : Dares 201062
  • 62. Agency workers from target groupsare on the rise in the Netherlands AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETAgency work gives “outsiders” a The percentage of special target groups among temporary employees in the Netherlandsviable access to the labour market, 35%thereby increasing labour marketparticipation and diversity. Ethnic 31%minorities, older people, labour 30%incapacitated and the long term 27%unemployed accounted for 31% of 25%agency workers in the Netherlandsin 2008. This is up from 27% in 20%2006. Agency work increases 18%labour market flexibility, whilstproviding basic rights and working 15% 14% 13%conditions to agency workers. 12%Because the agency remains the 10%worker’s employer, his rights arecapitalised from one assignment 5%to the next. Agency work thus 3% 2% 2%integrates “outsiders” in the labour 2006 1% 2008market, who then benefit from the 0% Ethnic minorities Older workers (45+) Labour incapacitated Long-term Total (corrected forsame working conditions as those unemployed overlap)provided to other agency workers. Source: ABU/ECORYS 2009 63
  • 63. Disabled temporary agency workerstake on a range of positions AGEnCy worK’S ConTrIbUTIon To A bETTEr FUnCTIonInG lAboUr MArKETIn France, 43% of disabled workers Employment of disabled agency workers in Franceare classified as skilled blue collarworkers, while 7% occupy middlemanagement positions. 16% are White collar16%white collar employees and 34%are unskilled blue collar workers. Unskilled blueThrough private employment collar 34%agencies, disabled agency workersare integrated at every level ofcompanies. Skilled blue collar Middle 43% management 7% Source : Prisme 201064
  • 64. 5. Companies’ rationale to use temporary agency work• Agency work improves companies’ competitiveness.• Agency work is not a substitute for permanent employment.• Companies use agency work to meet peaks in demand or to fill in for absent employees. 65
  • 65. Agency work improvescompanies’ competitivenessTo remain competitive, The use of agency work helps companies to improve competitivenessorganisations must improve theirresponse to output fluctuations,by adapting their workforce and Close adaptation Sustainability of to activity fluctuationskills to changes in a competitive permanent jobs AW useenvironment, and focusing on theircore business. The range of servicesproposed by private employmentagencies answers these challenges. Virtuous circle of“TAW enables user firms to make company and employmentrelatively easy labour adjustments Better growth resistanceand cost savings by outsourcing to economic cyclessome responsibility for recruitment Productivity gainsand administration.” * CompetitivenessSource: Eurofound - Temporary Agency Work improvementand Collective Bargaining in the EU | 200966
  • 66. 21% of European companiesmake use of temporary agency workers CoMPAnIES’ rATIonAlE To USE TEMPorAry AGEnCy worKAcross the EU, agency work is Companies employing temporary agency workers in 2009 (%)used by companies to remaincompetitive. In Belgium 57% of 60.0%companies used temporary agency 57%work at some point in 2009. Thefigure was also high in Denmark 50.0% 49%[49%], France [35%] and the UK[35%]. The figure is highest in 40.0%countries with the most developed 35% 35%labour polices and lowest in 34%countries which still need to enact 30.0% 29% 28%labour market reforms. 24% 23% 22% 22% 21% 21% 20.0% 17% 17% 16% 15% 12% 10.0% 9% 8% 8% 8% 7% 6% 5% 5% 5% 5% 4% 3% 2% 0.0% BE DK FR UK FI LU NL IT EU27 SE DE ES IE MK AT SI BG PT CY MT HU LV CZ EL RO LT EE SK HR TR PL Source: Eurofund - European Company Survey 2009 67
  • 67. Agency work is not a substitutefor permanent employmentResearch has shown that 80% of jobs Job creation in the UK: What is the alternative to the use of agency work?created by agency work would not Work not donehave existed if agency work were 4%not an option. This confirms that Does not know 4%agency work is not a substitute forpermanent employment, notablybecause it does not meet the same Hire permanent workersneeds, as it is generally used for 15%specific flexibility requirements thatcannot be covered by permanentcontracts. The fact that long-term Internal flexibilityassignments are rare - and the solutions 61%persistently high turnover ofagency workers - further supports No job creation instead Externalthis assumption. Any limited of agency work flexibility solutionssubstitution effect must be assessed Job creation instead 16%in a long-term perspective, as part of agency workof companies’ overall HR strategy to Partial job creation insteadintegrate a flexible component into of agency worktheir workforce. Source: Continental Research Corporate, Sept 200568
  • 68. In the USA the main reason to use agency workers isto fill in for absent employees or temporary vacancies CoMPAnIES’ rATIonAlE To USE TEMPorAry AGEnCy worKBy using agency workers, companies Main reason to hire agency workers in the USAaim to minimise their exposure torisk when the near future seemsuncertain. Once the outlook Fill in for absent employees or temporary vacancies 80%brightens, agency work helpscompanies to cope with suddenincreases in demand or to faceseasonal fluctuations. The use of Provide extra support during busy times or seasons 72%agency workers is also an effectivemeans of finding the right employee,whether to fill a permanent position,or to replace a worker leaving. Staff special short-term projects 68% Help find good permanent employees 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: American Staffing Association 2009 69
  • 69. In the UK the main reasonto use agency workers is to meet peaks in demandThree in five employers say that Why do employers use temporary agency workers in the UK?they use agency workers to filla temporary position “always” Meeting peaks in demand/covering busy periods 4.35or “most of the time”. The other 3.99most frequently used methods to 3.35 Overall flexibilitycover for temporary vacancies are 3.91resorting to casual staff, followed 4.27 Vetting staff before permanent recruitmentby fixed term contract workers and 3.65increased over-time. The overall 3.5 Covering short term staff leave/absencesflexibility provided by agency work 3.56is a key argument for the services 4.14 Helping keep running costs downsector, whereas the manufacturing 2.8sector uses it to evaluate staff for 2.66permanent recruitment, or merely Obtaining access to skills you cannot otherwise recruit 2.99to help keep running costs down. Allowing the business to try a new business line or 3.21 working patterns without permanent commitment 2.63 0 1 2 3 4 5 Manufacturing How important would you say that agency workers 1 = not important are to your organisation in terms of the following ? 5 = very important Services Source: REC / BERR Study 200870
  • 70. In the Netherlands the main reason to useagency workers is also to meet peaks in demand CoMPAnIES’ rATIonAlE To USE TEMPorAry AGEnCy worKAs an instrument for employers to Reasons for hiring agency workers in the Netherlandsadapt the size of their workforce tofluctuations in product demand, agency 80%work is very sensitive to variations in 75%the business cycle. In the Netherlands, 70%companies use agency work for twoprimary reasons: to absorb peaks in 60% 60% 58%demand and to cover for short-termstaff leave. Agency work is considered 50%the most appropriate solution to meet 43%these flexibility-related needs. It is 40%also seen as an alternative for manyHR-related functions traditionally 30%carried out internally by companies, 20%thus allowing them to focus on theircore activities. 10% 0% Flexibility related Absorb demand peaks Cover short-term staff leave Pre-select potential hires Outsource HR HR related Source: ABU 2005 71
  • 71. 72
  • 72. 6. Agency work and the economic recovery• Agency work is a bellwether of the economic situation.• As a cyclical business - and a forecasting indicator - agency work has suffered from the economic crisis, but agency workers have been first to be hired when the economy recovers.• Agency work limits the risk and duration of unemployment.• The private employment agency industry has rebounded sharply since the recession ended. 73
  • 73. Agency workis a bellwether of the economic situationThe use of agency work echoes the Agency work growth* and GDP growthbehaviour of the general economy. USA UKVarious studies have confirmed that 6.0% 15.0% 5.0% 40.0%there is a direct correlation between 5.0% 10.0% 4.0% 3.0% 30.0% 4.0% 5.0%variations in GDP and the level of use 0.0% 2.0% 3.0% 1.0% 20.0%of agency work. In years of growth, 2.0% -5.0% 0.0% -10.0% 10.0%the supply and demand of agency 1.0% -15.0% -1.0% 97 98 99 00 01 02 03 04 05 06 07 08 09 -2.0%workers increase proportionally, 0.0% 97 98 99 00 01 02 03 04 05 06 07 08 09 -20.0% -3.0% 0.0% -1.0%and diminish when the economy -2.0% -25.0% -4.0% -10.0% -30.0% -5.0%falters. As a precise indicator of the -3.0% -35.0% -6.0% -20.0%economic situation, the evolutionof the agency work industry is JP FR 4.0% 40.0% 5.0% 40.0%therefore monitored as such, as 3.0% 4.0% 30.0% 30.0%private employment agencies are 2.0% 3.0% 20.0% 1.0% 20.0%the first impacted by the crisis. 0.0% 2.0% 10.0% 97 98 99 00 01 02 03 04 05 06 07 08 09 10.0% 1.0% -1.0% 0.0% -2.0% 0.0% 0.0% 97 98 99 00 01 02 03 04 05 06 07 08 09 -10.0% -3.0% -1.0% -10.0% -5.0% -2.0% -20.0% 6.0% -20.0% -3.0% -30.0% GDP growth AW growth Sources : Ciett National Federations, IMF 2010 *Evolution of turnover74
  • 74. The agency work industry in Europereturned to growth in 2010 AGEnCy worK AnD ThE EConoMIC rECoVEryThe crisis affected the different Evolution of number of hours worked by agency workersEuropean agency work markets at (year on year)different times, depending on theopenness of their economies, the 35.0%maturity of their markets, and their 25.0%dependence on certain segments of 15.0%the economy. Accordingly, a countrylike Germany which weathered the 5.0%crisis better than most, can be seen -5.0%to have surpassed the previous levelsof temporary agency work achieved -15.0%before the beginning of the crisis. -25.0%This can be partly attributed to -35.0%Germany’s relatively low penetrationrate. Indeed it highlights that -45.0%Germany is taking advantage of this -55.0%latent potential to begin economic Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 10 10growth again. France Belgium Netherlands Spain Italy* Germany** Source: Ciett National Federations 2010 * number of remunerated working days - ** total number of temporary agency workers 75
  • 75. Number of agency workers in Francebegan to increase again in Feb 2010The agency work industry in France Evolution in number of agency workers in France *began to grow again in February 25.0%2010, and the number of fulltime equivalent workers has risen 20.5% 21.0% 20.0%compared with the same period in 20.0% 18.5%2009 since that date. At the end of2009 unemployment in France had 16.0% 15.0%reached 9.8%. The number of agency 15.0% 14.0%workers in France fell by 26%, from 12.0%604,000 in 2008 to 447,000 in 2009.The agency work penetration rate is 10.0%now 1.7%, down from 2.2% in 2008. 5.0% 4.0% -0.5% 0.0% Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 -5.0% Source: Prisme 2010 * in FTEs / percentage change year on year76
  • 76. Number of agency workers in Belgiumhave been rising since March 2010 AGEnCy worK AnD ThE EConoMIC rECoVEryThe agency work industry in Evolution in number of agency workers in Belgium *Belgium grew by 6.2% [in terms of 25.0%the number of full time equivalentworkers employed] in March 2010 19.6%compared to the same period in 20.0% 19.1%2009. This was the first growth in the 16.6%Belgian agency work industry since 16.2% 14.9%it entered the crisis. The growth has 15.0%continued steadily since that point 12.5%with most recent figures pointing to 10.7%a rise of 19.1% in September 2010 10.0%compared with September 2009. 6.2% 5.0% 0.0% -1.4% -2.7% -5.0% Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Source: Federgon 2010 * in FTEs / percentage change year on year 77
  • 77. The Italian agency work industrybegan growing again in February 2010The Italian agency work industry Evolution in number of remunerated days by agency workers in Italybegan to grow again in April 2010. 40.0%It noted an increase of 3.6% in thenumber of remunerated days byagency workers compared with 30.0% 28.3% 27.2% 25.8%April 2009. Growth has continued 21.5%steadily since that point. The impact 20.0%of the crisis on the Italian labour 13.3%market was relatively mild in 2008but grew in strength in 2009. The 10.0%Italian agency work market was 3.6%also hit later than other European 0.0%countries. This is partially due toregulatory changes introduced in -5.4%2001, 2004 and 2006 that helped -10.0%liberalise the market, thereby -15.1%cushioning the initial impact of the -20.0%crisis on the industry. -23.0% -30.0% Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Source: Ebitemp 2010 *percentage change year on year78
  • 78. The agency work industry returned to growth laterin the Netherlands than in other European countries AGEnCy worK AnD ThE EConoMIC rECoVEryThe Agency work industry in the Evolution in number of agency workers in the Netherlands *Netherlands returned to growth 15.0%in period 5 (May) of 2010 with agrowth rate of 9% in hours worked 10.0% 10.0%compared with the same period in 10.0% 9.0% 8.0%2009. The Netherlands returned togrowth later than other European 5.0% 6.0% 5.0%countries and at a lower rate. It must 5.0%be noted however that the crisishit the Netherlands later and the 0.0%industry suffered less than in othercountries (the industry decreased by -1.0%13.5% in 2009). -5.0% -6.0% -8.0% -10.0% -13.0% -15.0% Wk 1-4 Wk 5-8 Wk 9-12 Wk 13-16 Wk 17-20 Wk 21-24 Wk 25-28 Wk 29-32 Wk 33-36 Wk 37-40 Wk 41-44 Source ABU 2010 * in FTEs / percentage change year on year 79
  • 79. The Spanish agency work industryreturns to growth strongly, following crisisIn 2010, the Spanish agency work Evolution in number of agency workers in Spain *industry began to grow again in 30.0%February 2010 and continued todo so throughout the year. In 2009, 24.7% 25.0%Spain was heavily hit by the globaleconomic crisis. As one of the 21.2%fastest growing economies in recent 20.0%years, its impact was all the moresignificant. Unemployment climbed 15.0% 14.3%to over 19% in December 2009. 13.3% 12.2% 10.0% 8.7% 7.3% 5.0% -0.2% 0.0% Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 -5.0% Source: AGETT 2010 * in FTEs / percentage change year on year80
  • 80. The number of agency workers in Germanyreturned to pre-crisis levels in 2010 AGEnCy worK AnD ThE EConoMIC rECoVEryGermany’s agency work industry Evolution in number of agency workers in Germany*began to grow again as early as 40.0% 38.0%January 2010 and in September 35.5%2010, the German agency work 35.0% 34.6% 34.2% 33.7%industry returned to pre-crisis levels 32.0%of employment. This can be partly 30.0%attributed to Germany’s relativelyyoung and still immature market 25.0%in comparison with other major 23.6%economies. 20.0% 15.0% 11.0% 10.0% 5.0% 2.9% 0.0% Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 sep 10 Source BZA 2010 * Total number of workers/ percentage change year on year 81
  • 81. The American agency work marketbegan to recover earlier than the industry in EuropeAmerican economic activity US staffing employment index since 2006measured by employment peaked 15.0% 120in December 2007. Since then, ithas lost jobs until mid 2009 when 10.0% 110it began to grow again. But eventhough the decline in agency work 5.0%occurred later, it rapidly outpaced 100that of the American workforce at 0.0%large, as it played its role of buffer, 90cushioning the impact on permanent -5.0%staff. The strong recovery of the 80industry points that in the recovery, -10.0%agency workers are among the first tobe hired. -15.0% 70 -20.0% 60 19/06/2006 19/08/2006 19/10/2006 19/12/2006 19/02/2007 19/04/2007 19/06/2007 19/08/2007 19/10/2007 19/12/2007 19/02/2008 19/04/2008 19/06/2008 19/08/2008 19/10/2008 19/12/2008 19/02/2009 19/04/2009 19/06/2009 19/08/2009 19/10/2009 19/12/2009 19/02/2010 19/04/2010 19/06/2010 19/08/2010 19/10/2010 Week-to-Week Change ASA Staffing Index (Set at 100 on 6/12/2006) Source: American Staffing Association 201082
  • 82. Agency workersare the first hired when business recovers AGEnCy worK AnD ThE EConoMIC rECoVEryThe agency work industry can When business recovers, which workers do you typically hire first ?quickly call upon a large pool ofworkers, and provide organisationswith appropriate workers to bettermanage competitive pressures. As Don’ta result, the agency work industry distinguish 26%is among the first to create jobs assoon as the economy recovers, ascompanies first hire agency workersto meet an increase in orders,before recruiting permanent staffwhen the situation stabilises. As Pat Contingent workersMcFadden - Former UK Minister of 50%State for Employment Relations -said: “Agency work is a valuedroute into employment and plays Permanent workersa vital role in enabling employers 23%to respond flexibly to changingbusiness needs - and are likely to beparticularly important in enablingemployers and employees to takefull advantage of the upturn.” based on a survey of buyers from 171 large [1000+ employee] companies Source: Staffing Industry Analysts 2009 - www.staffingindustry.com 83
  • 83. Agency work typically rebounds sharplyafter recessions AGEnCy worK AnD ThE EConoMIC rECoVEryThe agency work industry not US staffing typically rebounds sharply after recessionsonly creates jobs that wouldnot otherwise exist, but it also 35.0%accelerates the number of jobs 30.0%created once the economy recovers.Historically, PrEAs are among the 25.0%first to create jobs in economic 20.0%upswings, enjoying double-digitgrowth rates when the economy 15.0%emerges from a recession. As 10.0%business picks up, companiesfirst hire temporary help, before 5.0%recruiting permanent staff once 0.0%business has stabilised. Since 1990, 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1998 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008the growth rate of agency work sales -5.0%revenues in the USA has exceededGDP growth by more than 2.5 times. -10.0% -15.0% Temporary Help ADE Real GDP % Change Source: American Staffing Association 200984
  • 84. About CiettAs the International Confederation of Its main objective is to help its membersPrivate Employment Agencies, Ciett is conduct their businesses in a legal andthe authoritative voice representing the regulatory environment that is positive andinterests of private employment agency supportive.industry across the world. Ciett is divided into five regionalFounded in 1967, Ciett consists of 44 organisations: Africa, Asia [AsiaCiett], Northnational federations of private employment America, South America [CLETT&A], andagencies and seven of the largest staffing Europe [Eurociett].companies worldwide: Adecco, GI Group,Hudson, Kelly Services, Manpower,Randstad, and USG People.86
  • 85. Africa Asia/Pacific north America South America Europe Macedonia | NFTWAMMorocco | FNETT Australia & New Canada | ACSESS Argentina | FAETT Austria | VZA Netherlands | ABUSouth Africa | APSO Zealand| RCSA Mexico | AMECH Brazil | SINDEPRESTEM Belgium | FEDERGON Norway | NHO Service China | CAFST USA | ASA Chile | AGEST Bulgaria | BG Staffing Poland | Polskie Forum HR Japan | JASSA Colombia | ACOSET Czech Republic | APPS Portugal | APESPE South Korea | KOSA Perú | AETT Perú Denmark | Dansk Erhverv Romania | ARAMT Estonia | ESAA Slovakia | APAS Finland | HPL Slovenia | ZAZ France | PRISME Spain | AGETT & AETT Germany | BZA Sweden | Greece | ENEPASE Bemanningsförtagen Hungary | SZTMSZ Switzerland | Swiss Ireland | NRF Staffing Italy | ASSOLAVORO Turkey | OIBD Latvia | LASA UK | REC Lithuania | TEAA Luxembourg | ULEDI
  • 86. www.inextremis.beTour & Taxis buildingAvenue du Port 86c - Box 302B 1000 - Brusselswww.ciett.org