The agency work industry around the world - Ciett

The agency work industry around the world - Ciett The agency work industry around the world - Ciett

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ECONOMIC REPORT The agency work industry around the world 2011 Edition (based on figures available for 2009)

ECONOMIC REPORT<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

<strong>around</strong> <strong>the</strong> <strong>world</strong><br />

2011 Edition<br />

(based on figures available for 2009)


<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

<strong>around</strong> <strong>the</strong> <strong>world</strong><br />

ECONOMIC REPORT<br />

2011 Edition<br />

(based on figures available for 2009)


Introduction<br />

In 2009, <strong>the</strong> global <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> continued to feel <strong>the</strong> impact of<br />

<strong>the</strong> economic downturn that started in<br />

<strong>the</strong> USA in 2007, and quickly spread to<br />

<strong>the</strong> rest of <strong>the</strong> <strong>world</strong>. Certain countries<br />

were hit harder than o<strong>the</strong>rs, while some<br />

continued to grow. <strong>The</strong> trends in this<br />

report go some way to showing that<br />

<strong>the</strong> openness and <strong>the</strong> socio-economic<br />

fabric of national economies and<br />

<strong>the</strong> flexibility of <strong>the</strong>ir labour markets<br />

account for <strong>the</strong> difference across<br />

countries.<br />

Overall, <strong>the</strong> total number of <strong>agency</strong><br />

<strong>work</strong>ers <strong>world</strong>wide fell 6% in 2009,<br />

compared to 2008, amounting to<br />

nearly 9 million full-time equivalents<br />

on a daily basis. In parallel, global total<br />

annual sales revenues also fell by 16%,<br />

amounting to €203 billion. <strong>The</strong> negative<br />

impact of <strong>the</strong> economic crisis on <strong>the</strong><br />

labour market in general, and <strong>the</strong><br />

<strong>agency</strong> <strong>work</strong> sector in particular, began<br />

in spring 2008 and accelerated in 2009.<br />

This report goes on to begin to describe<br />

<strong>the</strong> strong recovery made by <strong>the</strong> <strong>agency</strong><br />

<strong>work</strong> sector in <strong>the</strong> first half of 2010.<br />

In 2009, some markets such as<br />

Brazil and South Africa continued<br />

to grow, boosted by <strong>the</strong>ir rapidly<br />

expanding economies, which were<br />

only temporarily set back by <strong>the</strong><br />

crisis. However, most mature markets<br />

continued <strong>the</strong> declines which began in<br />

<strong>the</strong> previous year.<br />

Agency <strong>work</strong> plays - and still has <strong>the</strong><br />

potential to play fur<strong>the</strong>r - a valuable<br />

role in easing transitions within and into<br />

<strong>the</strong> labour market. Agency <strong>work</strong> creates<br />

jobs that would not o<strong>the</strong>rwise exist,<br />

enhancing companies’ competitiveness<br />

and <strong>work</strong>ers’ employability, <strong>the</strong>reby<br />

promoting a labour market that<br />

corresponds better to peoples’ - and<br />

companies’ - needs and aspirations.<br />

In global markets emerging from crisis,<br />

<strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong>’s capacity to<br />

anticipate and match labour market<br />

needs with <strong>the</strong> required skills is even<br />

more crucial, as agencies serve as<br />

impresarios for <strong>work</strong>ers, immediately<br />

identifying job vacancies, providing<br />

training, and facilitating <strong>the</strong> transition<br />

from unemployment to <strong>work</strong>, from one<br />

assignment to <strong>the</strong> next. In addition,<br />

<strong>agency</strong> <strong>work</strong> prepared <strong>the</strong> ground for a<br />

job-creating economic upturn, helping<br />

companies face <strong>the</strong> ongoing global<br />

competitive pressure, increasing labour<br />

4


market participation, and fur<strong>the</strong>rmore,<br />

accelerating and increasing <strong>the</strong> number<br />

of jobs created as <strong>the</strong> economy<br />

recovers.<br />

Now more than ever, <strong>the</strong> <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> plays a key role in improving<br />

<strong>the</strong> functioning of <strong>the</strong> labour market,<br />

by facilitating <strong>the</strong> match between<br />

supply and demand of labour, by<br />

securing upwards transitions for <strong>agency</strong><br />

<strong>work</strong>ers, and by providing more <strong>work</strong><br />

opportunities for more people.<br />

5


Content<br />

1. <strong>The</strong> players 11<br />

2. Agency <strong>work</strong>ers in numbers 19<br />

3. <strong>The</strong> profile of <strong>agency</strong> <strong>work</strong>ers 28<br />

a. General trends<br />

b. Agency <strong>work</strong>ers’ motives & satisfaction<br />

4. Agency <strong>work</strong>’s contribution to a better functioning labour market 46<br />

a. Transitions<br />

b. Job creation<br />

c. Inclusion & diversity<br />

5. Companies’ rationale to use <strong>agency</strong> <strong>work</strong> 65<br />

6. Agency <strong>work</strong> and <strong>the</strong> economic recovery 72<br />

7


<strong>The</strong> key facts & figures<br />

<strong>The</strong> players<br />

• <strong>The</strong>re are 72,000 private employment<br />

agencies and 169,000 branches<br />

<strong>world</strong>wide, employing 741,000 internal<br />

staff<br />

• In 2009 <strong>the</strong> total annual sales revenues of<br />

<strong>the</strong> top 10 private employment agencies<br />

<strong>world</strong>wide accounted for 29% of <strong>the</strong> total<br />

<strong>agency</strong> <strong>work</strong> market<br />

• In 2009 <strong>the</strong> global total annual sales<br />

revenues amounted to €203 billion,<br />

down 16% from 2008<br />

• Japan is <strong>the</strong> <strong>world</strong> leader with 24% of total<br />

annual sales. <strong>The</strong> USA represents 22% of<br />

<strong>the</strong> global <strong>agency</strong> <strong>work</strong> market, followed<br />

by <strong>the</strong> UK at 12%<br />

• Europe is <strong>the</strong> leading regional entity by<br />

total annual sales revenues, accounting<br />

for 40% of global total annual sales<br />

revenues<br />

Agency <strong>work</strong>ers<br />

in numbers<br />

• In 2009 nearly 9 million <strong>agency</strong> <strong>work</strong>ers<br />

in full-time equivalents were employed<br />

by private employment agencies across<br />

<strong>the</strong> globe, down 6% from 2008<br />

• <strong>The</strong> <strong>agency</strong> <strong>work</strong> penetration rate is 1.7%<br />

in Japan and 1.5% in Europe and 1.3% in<br />

<strong>the</strong> USA<br />

• <strong>The</strong> average number of hours <strong>work</strong>ed<br />

by an <strong>agency</strong> <strong>work</strong>er during one year is<br />

nearly half as much as a full time <strong>work</strong>er<br />

• Most <strong>agency</strong> <strong>work</strong> assignments are more<br />

than one month long<br />

<strong>The</strong> profile of <strong>agency</strong> <strong>work</strong>ers<br />

• Nearly three in five <strong>agency</strong> <strong>work</strong>ers are<br />

aged less than 30<br />

• Three in four <strong>agency</strong> <strong>work</strong>ers have at best<br />

finished <strong>the</strong>ir secondary education<br />

• A significant proportion of <strong>agency</strong><br />

<strong>work</strong>ers do not seek a permanent<br />

employment<br />

• <strong>The</strong> motive to <strong>work</strong> via an <strong>agency</strong> is<br />

usually to find a permanent job<br />

8


<strong>The</strong> contribution of <strong>agency</strong><br />

<strong>work</strong> to a better functioning<br />

labour market<br />

• Agency <strong>work</strong> facilitates transitions in <strong>the</strong><br />

labour market<br />

• Agency <strong>work</strong> contributes to reducing<br />

unemployment especially by serving as a<br />

stepping-stone into <strong>the</strong> labour market<br />

• <strong>The</strong> higher <strong>the</strong> <strong>agency</strong> <strong>work</strong> penetration<br />

rate <strong>the</strong> lower <strong>the</strong> level of undeclared<br />

<strong>work</strong><br />

• Private employment agencies contribute<br />

to upgrading <strong>the</strong> skills of <strong>agency</strong> <strong>work</strong>ers<br />

• Vulnerable target groups use <strong>agency</strong><br />

<strong>work</strong> as a means of entering <strong>the</strong> labour<br />

market<br />

Companies’ rationale to use<br />

<strong>agency</strong> <strong>work</strong><br />

• Agency <strong>work</strong> improves companies’<br />

competitiveness<br />

• Agency <strong>work</strong> is not a substitute for<br />

permanent employment<br />

• Reasons to use <strong>agency</strong> <strong>work</strong> are generally<br />

to meet peaks in demand or to fill in for<br />

absent employees<br />

Agency <strong>work</strong> and <strong>the</strong> economic<br />

recovery<br />

• Agency <strong>work</strong> is a bellwe<strong>the</strong>r of <strong>the</strong><br />

economic situation<br />

• As a cyclical business - and a forecasting<br />

indicator - <strong>agency</strong> <strong>work</strong> has suffered from<br />

<strong>the</strong> economic crisis, but <strong>agency</strong> <strong>work</strong>ers<br />

have been <strong>the</strong> first ones to be hired when<br />

<strong>the</strong> economy recovers<br />

• Agency <strong>work</strong> limits <strong>the</strong> risk and duration<br />

of unemployment<br />

• <strong>The</strong> private employment <strong>agency</strong> <strong>industry</strong><br />

has rebounded sharply since <strong>the</strong><br />

recession<br />

9


1. <strong>The</strong> players<br />

• <strong>The</strong>re are 72,000 private employment agencies<br />

[PrEAs] <strong>world</strong>wide, with 169,000 branches and<br />

741,000 persons as internal staff<br />

• Total annual sales revenues for <strong>the</strong> top 10 PrEAs<br />

account for 29% of <strong>the</strong> global <strong>agency</strong> <strong>work</strong> market<br />

• Global total annual sales revenues amounted to<br />

€203 billion in 2009<br />

• Japan is <strong>the</strong> <strong>world</strong> leader with 24% of total annual<br />

sales. <strong>The</strong> USA represents 22% of <strong>the</strong> global <strong>agency</strong><br />

<strong>work</strong> market, followed by <strong>the</strong> UK with 12%<br />

• Europe is <strong>the</strong> leading regional entity by total<br />

annual sales revenues, accounting for 40% of<br />

global total annual sales revenues<br />

11


<strong>The</strong>re are 72,000 private<br />

employment agencies...<br />

From 2008 to 2009 <strong>the</strong> number<br />

of private employment agencies<br />

[PrEAs] increased by 1% to reach<br />

72,000. Europe accounts for 48% of<br />

all PrEAs, <strong>the</strong> Asia/Pacific region for<br />

34%, North America for 8% and Africa<br />

for 4%. Japan, Germany and <strong>the</strong> UK<br />

are <strong>the</strong> top three countries in terms<br />

of number of PrEAs, accounting<br />

collectively for 56% of all agencies<br />

<strong>world</strong>wide. As recognised by <strong>the</strong> ILO:<br />

“Private employment agencies play<br />

an important role in <strong>the</strong> functioning<br />

of contemporary labour markets.<br />

For <strong>the</strong> past three decades, <strong>the</strong><br />

increasing need to provide <strong>work</strong>ers<br />

and services to a rapidly growing<br />

and flexible labour market has led<br />

to <strong>the</strong> spectacular development of<br />

<strong>the</strong>se agencies.” **<br />

Japan<br />

UK<br />

Germany<br />

USA<br />

Ne<strong>the</strong>rlands<br />

Australia<br />

South Africa<br />

Brazil<br />

South Korea<br />

Denmark<br />

France<br />

Austria<br />

Poland<br />

Canada<br />

Peru<br />

Hungary<br />

Colombia<br />

Sweden<br />

Mexico<br />

Finland<br />

Norway<br />

Spain*<br />

Slovakia<br />

Turkey<br />

Portugal<br />

Czech Republic<br />

Chile<br />

Belgium<br />

Romania<br />

Argentina<br />

Italy<br />

Slovenia<br />

Macedonia<br />

Greece<br />

1,611<br />

1,419<br />

1,347<br />

1,200<br />

1,200<br />

1,086<br />

945<br />

722<br />

667<br />

610<br />

500<br />

500<br />

450<br />

400<br />

363<br />

355<br />

283<br />

265<br />

215<br />

179<br />

140<br />

129<br />

92<br />

85<br />

59<br />

27<br />

9<br />

3,640<br />

3,500<br />

3,000<br />

Number of private employment agencies<br />

6,000<br />

9,078<br />

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000<br />

11,500<br />

20,000<br />

12<br />

* figures for 2008<br />

** ILO - Private employment agencies, temporary <strong>agency</strong> <strong>work</strong>ers and <strong>the</strong>ir contribution to <strong>the</strong> labour market | 2009


... with 169,000<br />

branches <strong>world</strong>wide<br />

<strong>The</strong> players<br />

From 2008 to 2009 <strong>the</strong> number of<br />

branches increased by 1% to attain<br />

169,000; <strong>the</strong> Asia/Pacific region<br />

accounting for 55%, Europe for<br />

28%, and North America for 12%.<br />

Japan, <strong>the</strong> USA, and <strong>the</strong> UK are <strong>the</strong><br />

top three countries by number of<br />

branches, accounting toge<strong>the</strong>r for<br />

72% of all branches <strong>world</strong>wide.<br />

<strong>The</strong> “branch to PrEA” ratio varies<br />

greatly from country to country, from<br />

a staggering 34.5 branches per PrEA<br />

in Italy to fewer than one per private<br />

employment <strong>agency</strong> in Germany. This<br />

difference can be explained by <strong>the</strong><br />

very high concentration of <strong>the</strong> Italian<br />

<strong>agency</strong> <strong>work</strong> market, characterised by<br />

a small number of large companies<br />

with an extensive net<strong>work</strong>. This is<br />

in contrast to highly fragmented<br />

markets, such as Germany,<br />

characterised by a large number<br />

of PrEAs, often operating from a<br />

Japan<br />

USA<br />

UK<br />

Germany<br />

Australia<br />

South Africa<br />

France<br />

Ne<strong>the</strong>rland<br />

Canada<br />

Italy<br />

Poland<br />

Czech Republic<br />

South Korea<br />

Spain*<br />

Austria<br />

Belgium<br />

Hungary<br />

Sweden<br />

Norway<br />

Brazil<br />

Slovakia<br />

Argentina<br />

Portugal*<br />

Romania<br />

Slovenia<br />

Chile<br />

Greece<br />

7,064<br />

7,000<br />

7,000<br />

6,500<br />

5,285<br />

3,616<br />

2900<br />

2,941<br />

2,069<br />

1,983<br />

1,700<br />

1,500<br />

1,234<br />

977<br />

850<br />

700<br />

489<br />

465<br />

430<br />

427<br />

194<br />

140<br />

102<br />

16<br />

20,000<br />

17,000<br />

single local branch (some German<br />

companies operate without any<br />

branches, while <strong>the</strong>re is also a number<br />

Number of branches<br />

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000<br />

of dormant, non active agencies<br />

influencing this number). <strong>The</strong> global<br />

average is 2.3 branches per PrEA.<br />

83,808<br />

* figures for 2008<br />

13


741,000 people were employed<br />

as internal staff by PrEAs in 2009<br />

From 2008 to 2009 <strong>the</strong> number<br />

of internal staff [HR consultants<br />

and back-office people <strong>work</strong>ing<br />

in branches] decreased by 10% to<br />

reach 741,000. Europe accounts for<br />

30%, <strong>the</strong> Asia/Pacific region for 26%,<br />

and South America for 25%. <strong>The</strong> top<br />

three countries in terms of internal<br />

staff are Japan, Brazil, and <strong>the</strong> USA,<br />

accounting toge<strong>the</strong>r for 65% of all<br />

internal staff <strong>world</strong>wide.<br />

<strong>The</strong> global average is 4 people<br />

employed as internal staff per<br />

branch, and 10 per PrEA. This<br />

illustrates that <strong>the</strong> <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> is still mostly composed of<br />

small and medium-sized companies,<br />

despite <strong>the</strong> presence of several large<br />

multinationals operating <strong>world</strong>wide.<br />

Japan<br />

Brazil<br />

USA<br />

UK<br />

Germany<br />

Ne<strong>the</strong>rlands<br />

France<br />

Sweden<br />

Italy<br />

Belgium<br />

Mexico<br />

South Africa<br />

Poland<br />

ArgenPna<br />

Australia<br />

Finland<br />

Hungary<br />

Norway<br />

South Korea<br />

Romania<br />

Czech Republic<br />

Chile<br />

Slovakia<br />

Portugal*<br />

Slovenia<br />

Luxembourg*<br />

Greece<br />

Internal staff employed<br />

185,000<br />

169,635<br />

120,000<br />

108,833<br />

44,700<br />

34,000<br />

23,000<br />

11,000<br />

9,000<br />

6,482<br />

6,100<br />

5,500<br />

4,100<br />

3,550<br />

3,500<br />

3,000<br />

2,885<br />

2,340<br />

2,032<br />

1,472<br />

1,440<br />

1,348<br />

1,254<br />

750<br />

420<br />

307<br />

183<br />

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000<br />

* figures for 2008<br />

14


<strong>The</strong> top 10 PrEAs <strong>world</strong>wide accounted<br />

for 29% of global annual sales revenues in 2009<br />

<strong>The</strong> players<br />

In 2009 some of <strong>the</strong> main global<br />

players continued to feel <strong>the</strong> impact<br />

of <strong>the</strong> economic crisis. Adecco, with<br />

$21.3 billion in total annual sales<br />

revenues, remains <strong>the</strong> market leader.<br />

Randstad is <strong>the</strong> second largest PrEA<br />

with $17.3 billion, followed by<br />

Manpower with $16.7 billion.<br />

25.0<br />

20.0<br />

15.0<br />

21.3<br />

17.3<br />

Top 10 staffing companies in billions of $<br />

16.7<br />

10.0<br />

5.0<br />

4.9<br />

4.3 4.2 4.2<br />

3.8<br />

3.2<br />

2.7<br />

0<br />

Adecco Randstad Manpower Allegis<br />

Group<br />

Kelly<br />

Services<br />

Recruit<br />

Staffingand<br />

StaffService*<br />

USG People Hays PLC Advantage<br />

Resourcing<br />

Robert Half<br />

Source: Staffing Industry Analysts 2009 - www.staffing<strong>industry</strong>.com<br />

*Consolidated figures for Recruit Staffing and Staff Service<br />

15


Global total annual sales revenues<br />

totaled €203 billion<br />

In 2009, <strong>the</strong> global total annual<br />

sales revenues for <strong>the</strong> <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> amounted to €203 billion,<br />

a decline of 16% compared to 2008,<br />

reflecting <strong>the</strong> ongoing of <strong>the</strong> impact<br />

of <strong>the</strong> crisis on major economies,<br />

such as <strong>the</strong> USA and <strong>the</strong> UK.<br />

300<br />

250<br />

Global annual sales revenues in billions of € *<br />

233<br />

256<br />

243<br />

200<br />

191<br />

203<br />

150<br />

147<br />

157<br />

150<br />

160<br />

130<br />

100<br />

83<br />

50<br />

0<br />

1996 1998 1999 2002 2003 2004 2005 2006 2007 2008 2009<br />

Source: <strong>Ciett</strong> national federations<br />

16


In 2009 Japan and <strong>the</strong> USA are global <strong>agency</strong><br />

<strong>work</strong> market leaders by total annual sales revenues<br />

<strong>The</strong> players<br />

In 2009, Japan is <strong>the</strong> <strong>world</strong> leader<br />

with 24% of global annual sales. <strong>The</strong><br />

USA represents 22% of <strong>the</strong> global<br />

<strong>agency</strong> <strong>work</strong> market. <strong>The</strong> UK remains<br />

<strong>the</strong> third largest market <strong>world</strong>wide<br />

with 12% of global total annual sales<br />

revenues. Europe accounts for 40%<br />

of global total annual sales revenues,<br />

Asia/Pacific for 35%, and North<br />

America for 22%.<br />

Agency <strong>work</strong> sales revenues split per country<br />

Brazil 4%<br />

Australia 4%<br />

Rest of World<br />

15%<br />

Japan 24%<br />

Ne<strong>the</strong>rlands 5%<br />

Germany 6%<br />

USA 22%<br />

France 8%<br />

UK 12%<br />

Source: <strong>Ciett</strong> national federations<br />

17


Japan, <strong>the</strong> USA, and <strong>the</strong> UK<br />

are <strong>the</strong> three largest <strong>agency</strong> <strong>work</strong> markets in 2009<br />

Japan, <strong>the</strong> USA, and <strong>the</strong> UK toge<strong>the</strong>r<br />

account for 52% of PrEAs <strong>world</strong>wide,<br />

72% of branches, 54% of internal<br />

staff, 61% of total annual sales<br />

revenues, and 47% of <strong>agency</strong> <strong>work</strong>ers<br />

in full-time equivalents.<br />

<strong>The</strong> UK has <strong>the</strong> lowest “branch<br />

to PrEA ratio” and <strong>the</strong> highest<br />

“internal staff to branch ratio”.<br />

This can be explained by <strong>the</strong> high<br />

level of fragmentation of <strong>the</strong> UK<br />

<strong>agency</strong> <strong>work</strong> market, characterised<br />

by a majority of small private<br />

employment agencies that operate<br />

locally. Japan has <strong>the</strong> lowest “<strong>agency</strong><br />

<strong>work</strong>er to branch” and “<strong>agency</strong><br />

<strong>work</strong>er to internal staff” ratios,<br />

and <strong>the</strong> USA <strong>the</strong> largest. <strong>The</strong>se<br />

figures must be assessed carefully,<br />

bearing in mind that <strong>the</strong>re might<br />

be a significant amount of dormant<br />

agencies and branches in Japan.<br />

18<br />

This difference can also be partially<br />

explained by <strong>the</strong> fact that Japanese<br />

<strong>agency</strong> <strong>work</strong>ers <strong>work</strong> an exceptional<br />

Comparison of <strong>the</strong> 3 largest <strong>agency</strong> <strong>work</strong> markets in <strong>the</strong> <strong>world</strong><br />

Japan USA UK<br />

Number of PrEAs 20,000 6,000 11,500<br />

Number of branches 83,808 20,000 17,000<br />

Number of <strong>agency</strong> <strong>work</strong>ers 1,098,191 2,010,000 1,068,197<br />

Number of internal staff 185,000 120,000 95,865<br />

Branch to PrEA ratio 4.2 3.3 1.5<br />

Internal staff to branch ratio 3 6 5.6<br />

Agency <strong>work</strong>er to branch ratio 13 100.5 6.3<br />

Agency <strong>work</strong>er to internal staff ratio 6 16.8 11.1<br />

Country’s share of total global annual sales revenues 24% 22% 12%<br />

AW penetration rate 1.7% 1.3% 3.6%<br />

76% of <strong>the</strong> average annual hours<br />

<strong>work</strong>ed by a Japanese employee with<br />

a full-time open-ended contract.


2. Agency <strong>work</strong>ers in numbers<br />

• nearly 9 million <strong>agency</strong> <strong>work</strong>ers in full-time<br />

equivalents were employed in 2009.<br />

• <strong>The</strong> number of <strong>agency</strong> <strong>work</strong>ers has risen by over<br />

3.8 million since 1999.<br />

• In 2009 <strong>the</strong> European average penetration rate<br />

of <strong>agency</strong> <strong>work</strong> was 1.5% and <strong>the</strong> South American<br />

average 0.8%.<br />

• In 2009 <strong>the</strong> Japanese and American <strong>agency</strong> <strong>work</strong><br />

penetration rates were respectively 1.7% and 1.3%.<br />

• Agency <strong>work</strong>ers <strong>work</strong> nearly half as much as fulltime<br />

permanent employees.<br />

• Most <strong>agency</strong> <strong>work</strong> assignments are more than one<br />

month long.<br />

19


9 million <strong>agency</strong> <strong>work</strong>ers<br />

were employed in 2009<br />

In 2009 <strong>the</strong> total number of <strong>agency</strong><br />

<strong>work</strong>ers <strong>world</strong>wide amounted<br />

to nearly 9 million in full-time<br />

equivalents, a decrease of 6%<br />

compared to 2008. Europe accounts<br />

for 34%, North America for 23%, and<br />

<strong>the</strong> Asia/Pacific region for 14%.<br />

<strong>The</strong> USA employs nearly as many<br />

<strong>agency</strong> <strong>work</strong>ers in full-time<br />

equivalents [2.01 million] than <strong>the</strong><br />

second and third biggest suppliers<br />

of <strong>agency</strong> <strong>work</strong>ers combined,<br />

respectively Japan [1.1 million], and<br />

<strong>the</strong> UK [1.07 million]. Toge<strong>the</strong>r, <strong>the</strong><br />

USA, Japan, and <strong>the</strong> UK account for<br />

47% of all <strong>agency</strong> <strong>work</strong>ers assigned<br />

<strong>world</strong>wide. South Africa is <strong>the</strong><br />

fourth largest market in <strong>the</strong> <strong>world</strong><br />

with 924,499 <strong>agency</strong> <strong>work</strong>ers in<br />

full-time equivalents, ahead of Brazil<br />

[902,000], Germany [625,000] and<br />

Colombia [550,000].<br />

20<br />

USA<br />

Japan<br />

UK<br />

South Africa<br />

Brazil<br />

Germany<br />

Colombia<br />

France<br />

Ne<strong>the</strong>rlands<br />

Italy<br />

Spain*<br />

Australia<br />

South Korea<br />

Argentina<br />

Poland<br />

Belgium<br />

Austria<br />

Switzerland<br />

Sweden<br />

Macedonia<br />

Portugal*<br />

Peru<br />

Czech Republic<br />

Chile<br />

Romania<br />

Hungary<br />

Denmark<br />

Norway<br />

Finland<br />

Uruguay*<br />

Slovakia<br />

Bulgaria*<br />

Greece<br />

Luxembourg*<br />

Slovenia<br />

Lithuania<br />

212,651<br />

162,000<br />

141,064<br />

100,000<br />

83,775<br />

76,454<br />

71,914<br />

71,759<br />

57,230<br />

56,950<br />

46,000<br />

45,230<br />

45,000<br />

42,500<br />

35,625<br />

29,112<br />

22,153<br />

22,153<br />

21,227<br />

20,186<br />

20,000<br />

15,000<br />

14,492<br />

5,400<br />

5,087<br />

4,300<br />

2,828<br />

823<br />

Daily average number of FTEs °<br />

625,000<br />

530,000<br />

447,348<br />

1,098,191<br />

1,068,197<br />

924,499<br />

902,000<br />

0 500,000 1,000,000 1,500,000 2,000,000<br />

2,010,000<br />

° Full-time equivalents defined as <strong>the</strong> total number of hours <strong>work</strong>ed by all <strong>agency</strong> <strong>work</strong>ers in a country over a period of one year divided by <strong>the</strong> average number of hours<br />

<strong>work</strong>ed over a period of one year by a <strong>work</strong>er with a full-time job with an open-ended contract<br />

* figures for 2008


<strong>The</strong> number of <strong>agency</strong> <strong>work</strong>ers<br />

has increased by 3.8 million since 1999<br />

Agency <strong>work</strong>ers<br />

in numbers<br />

<strong>The</strong> number of <strong>agency</strong> <strong>work</strong>ers<br />

<strong>world</strong>wide increased from close to<br />

5.2 million full-time equivalents in<br />

1999 to nearly 9 million in 2009.<br />

In <strong>the</strong> last ten years, <strong>the</strong> number of<br />

<strong>agency</strong> <strong>work</strong>ers in Europe has greatly<br />

increased, partially as a result of <strong>the</strong><br />

progressive liberalisation of certain<br />

tightly regulated labour markets,<br />

notably in Italy, Germany, and <strong>the</strong><br />

Nordic countries, and <strong>the</strong> opening<br />

up of new markets in Central and<br />

Eastern Europe.<br />

Outside Europe <strong>the</strong> number of<br />

<strong>agency</strong> <strong>work</strong>ers has nearly doubled<br />

between 1999 and 2009, on<br />

account of <strong>the</strong> gradual deregulation<br />

of <strong>the</strong> Japanese labour market, and<br />

<strong>the</strong> advent of emerging markets,<br />

such as Brazil and South Africa, on<br />

<strong>the</strong> global scene.<br />

EUROPE<br />

REST OF WORLD<br />

Number of <strong>agency</strong> <strong>work</strong>ers [in daily FTEs / 1.000]<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />

Austria 21 24 30 33 31 38 44 47 59 67 68 57<br />

Belgium 60 63 71 68 66 66 73 78 88 95 92 72<br />

Bulgaria na na na na na na na na na na 5 5<br />

Czech Republic na na na na na na na na na na 35 36<br />

Denmark 7 7 8 10 10 11 13 17 21 17 21 18<br />

Finland 9 8 9 11 11 12 14 16 18 28 32 20<br />

France 458 515 604 602 570 555 570 586 603 638 604 447<br />

Germany 246 276 328 341 318 330 385 444 580 715 760 625<br />

Greece na na na na na na na na na 8 8 5<br />

Hungary ns ns ns ns 30 39 53 54 55 55* 55* 22<br />

Ireland 9 10 25 25 25 25 25 25 30 35 35* 35*<br />

Italy 10 26 69 67 82 132 154 157 184 222 225 162<br />

Lithuania na na na na na na na na na na na 1<br />

Luxembourg 2 3 4 4 4 4 4 4 5 5 4 4<br />

Macedonia na na na na na na na na 2 2* 2* 5<br />

Ne<strong>the</strong>rlands 180 186 183 178 169 154 157 176 207 233 242 213<br />

Norway 11 11 11 12 11 10 12 15 24 25 26 20<br />

Poland ns ns ns ns ns 19 25 27 35 60 90 72<br />

Portugal 33 45 45 45 45 45 45 45 45 45 45 45<br />

Romania na na na na na na na na na na 30 22<br />

Slovakia ns ns ns ns ns ns 11 na na na 14 14<br />

Slovenia na na na na na na na na na na 3 3<br />

Spain 110 133 133 126 123 123 124 130 141 160 141 141*<br />

Sweden 18 24 42 38 37 29 30 32 37 59 59 46<br />

Switzerland 30 34 39 38 37 36 41 49 61 70 69 57<br />

UK 696 761 1,027 1,027 1,036 1,111 1,175 1,219 1,265 1,378 1,220 1,068<br />

Subtotal Europe 1,900 2,126 2,629 2,625 2,605 2,739 2,955 3,120 3,460 3,917 3,885 3,214<br />

Argentina 47 46 48 47 34 54 70 81 88 96 96 76<br />

Australia na na na na na na na na na na na 100<br />

Brazil na na na na na na na na 800 859 876 902<br />

Chile na na na na na na na na 86 33 30 29<br />

Colombia na na na na na na na na na na na 550<br />

Japan 307 395 537 612 693 743 890 1,060 1,220 1,330 1,400 1,098<br />

Mexico na na na na na na na na na 25 24 24*<br />

Peru na na na na na na na na na na na 43<br />

South Africa ns ns ns ns ns ns ns 300 300 300 500 924<br />

South Korea ns ns ns ns ns ns 50 57 66 75 78 84<br />

Uruguay na na na na na na na na na na 15 na<br />

USA 2,530 2,600 2,700 2,300 2,160 2,380 2,670 2,910 2,960 2,960 2,660 2,010<br />

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 5,775<br />

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<br />

ns = non significant; nlr = not legally recognised; na = not available; * = estimated<br />

21


Outside Europe <strong>agency</strong><br />

<strong>work</strong> penetration rates vary widely<br />

Agency <strong>work</strong> penetration rates are<br />

determined by <strong>the</strong> level of maturity<br />

of <strong>the</strong> market in which <strong>the</strong>y evolve.<br />

Mature <strong>agency</strong> <strong>work</strong> markets are<br />

characterised by high penetration<br />

rates, indicating a potent blend of<br />

large user bases, strong economic<br />

growth, and generally relevantly<br />

regulated markets. At a mere 1.1%<br />

of <strong>the</strong> total regional active <strong>work</strong>ing<br />

population, <strong>the</strong> relatively low<br />

penetration rate of <strong>agency</strong> <strong>work</strong> in<br />

South American countries reveals<br />

<strong>the</strong> region’s considerable potential<br />

for growth.<br />

7.0%<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

6.5%<br />

Agency <strong>work</strong> penetration rates outside Europe in 2009*<br />

2.8%<br />

1.7%<br />

1.3%<br />

1.5%<br />

1.0%<br />

1.0%<br />

0.4% 0.4%<br />

0.4%<br />

0.0%<br />

South Africa Colombia Japan USA Brazil Chile Argentina South Korea EU Average<br />

* Defined as <strong>the</strong> number of full-time equivalents - as supplied by <strong>Ciett</strong> National Federations - divided by <strong>the</strong> total active <strong>work</strong>ing population - as published by <strong>the</strong> ILO<br />

22


<strong>The</strong> average European <strong>agency</strong><br />

<strong>work</strong> penetration dipped from 2007 to 2009<br />

Agency <strong>work</strong>ers<br />

in numbers<br />

In Europe, <strong>the</strong> level of regulation and<br />

degree of economic development<br />

explain <strong>the</strong> differences in pace of<br />

growth of <strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong>.<br />

Recently, countries such as Germany<br />

and Poland have revealed <strong>the</strong>ir<br />

potential, but each for very different<br />

reasons: Germany as a heavilyindustrialised<br />

economy, slowly<br />

freeing itself of very strict regulatory<br />

measures, and Poland as a budding<br />

regional leader, rapidly catching up<br />

its Western European counterparts.<br />

<strong>The</strong> steady growth from 1996<br />

to 2007 halted abruptly in 2008<br />

and continued its decline with a<br />

penetration rate drop of 0.2% across<br />

Europe in 2009.<br />

Agency <strong>work</strong> penetration rates in Europe since 1998<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />

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%<br />

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%<br />

Bulgaria na na na na na na na na na na 0.2% na<br />

Czech Republic na na na na na na na na na na 0.7% 0.7%<br />

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%<br />

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%<br />

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%<br />

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%<br />

Greece na na na na na na na na na 0.2% 0.2% 0.1%<br />

Hungary ns ns ns ns 0.8% 1.0% 1.4% 1.4% 1.4% 1.4% 1.4% 0.6%<br />

Ireland 0.6% 0.6% 1.5% 1.5% 1.4% 1.4% 1.4% 1.3% 1.5% 1.7% 1.7% na<br />

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%<br />

Luxembourg 1.2% 1.7% 1.9% 2.0% 2.2% 2.3% 2.1% 2.3% 2.4% 2.4% 2.0% na<br />

Ne<strong>the</strong>rlands 2.4% 2.5% 2.3% 2.2% 2.1% 1.9% 1.9% 2.2% 2.5% 2.8% 2.9% 2.5%<br />

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%<br />

Poland ns ns ns ns ns 0.1% 0.2% 0.2% 0.3% 0.4% 0.6% 0.3%<br />

Portugal 0.7% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% na<br />

Romania na na na na na na na na na na 0.3% 0.2%<br />

Slovakia na na na na na na na na na na 0.6% 0.6%<br />

Slovenia na na na na na na na na na na 0.3% 0.3%<br />

Spain 0.8% 0.9% 0.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.8% 0.7% na<br />

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%<br />

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%<br />

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%<br />

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%<br />

ns = non significant ; nlr = not legally recognised ; na = not available<br />

23


<strong>The</strong> European average <strong>agency</strong><br />

<strong>work</strong> penetration rate was 1.5% in 2009<br />

<strong>The</strong> European average <strong>agency</strong> <strong>work</strong><br />

penetration rate fell from 1.7% in<br />

2008 to 1.5% in 2009, notably due<br />

to <strong>the</strong> sustained impact of <strong>the</strong><br />

economic crisis. Never<strong>the</strong>less, this<br />

average hides enormous differences<br />

from country to country, ranging<br />

from 3.6% in <strong>the</strong> UK to 0.1% in<br />

Greece. Mature markets in Western<br />

Europe, namely <strong>the</strong> UK, France,<br />

Germany and <strong>the</strong> Benelux countries,<br />

are all above average; whereas <strong>the</strong><br />

newer markets in Sou<strong>the</strong>rn and<br />

Eastern Europe are all below average,<br />

indicating that <strong>the</strong>y still have room<br />

to grow.<br />

4.0%<br />

3.5%<br />

3.0%<br />

2.5%<br />

2.0%<br />

1.5%<br />

1.0%<br />

0.5%<br />

3.6%<br />

2.9%<br />

1.7%<br />

1.7%<br />

Agency <strong>work</strong> penetration rates in Europe in 2009*<br />

1.6%<br />

1.4% 1.4%<br />

European average penetration rate : 1.5%<br />

1.0%<br />

0.9%<br />

0.8% 0.8% 0.8% 0.7% 0.7%<br />

0.6% 0.6% 0.6%<br />

0.4%<br />

0.3% 0.29%<br />

0.1%<br />

0.0%<br />

UK<br />

Ne<strong>the</strong>rlands<br />

France<br />

Belgium<br />

Germany<br />

Austria<br />

Switzerland<br />

Sweden<br />

Portugal<br />

Norway<br />

Finland<br />

Macedonia<br />

Czech Republic<br />

Italy<br />

Denmark<br />

Slovakia<br />

Hungary<br />

Poland<br />

Slovenia<br />

Romania<br />

Greece<br />

* Defined as <strong>the</strong> number of full-time equivalents - as supplied by <strong>Ciett</strong> National Federations - divided by <strong>the</strong> total active <strong>work</strong>ing population - as published by <strong>the</strong> ILO<br />

24


Penetration rate<br />

in major markets fell in 2009<br />

Agency <strong>work</strong>ers<br />

in numbers<br />

In 2009, <strong>the</strong> European and American<br />

penetration rates fell to 1.4% and<br />

1.3% respectively, reflecting <strong>the</strong><br />

sustained impact of <strong>the</strong> economic<br />

crisis on <strong>the</strong>se markets, whilst <strong>the</strong><br />

Japanese penetration also fell 1.7%,<br />

although it entered <strong>the</strong> crisis later<br />

than <strong>the</strong> USA and Europe.<br />

2.0%<br />

1.5%<br />

1.7%<br />

Comparison of European, Japanese and<br />

American <strong>agency</strong> <strong>work</strong> penetration rates<br />

1.8%<br />

1.5%<br />

1.4%<br />

1.9%<br />

1.6% 1.6%<br />

1.8%<br />

2.2%<br />

2.1%<br />

2.0%<br />

1.7%<br />

1.7%<br />

1.5%<br />

1.3%<br />

1.0%<br />

1.0%<br />

1.1%<br />

0.8%<br />

0.5%<br />

0.5%<br />

0.0%<br />

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />

US<br />

Japan<br />

Europe<br />

Source: <strong>Ciett</strong> national federations<br />

25


Agency <strong>work</strong>ers <strong>work</strong> nearly half as many hours<br />

on a yearly basis as full-time permanent employees<br />

Agency <strong>work</strong>ers tend to <strong>work</strong> less<br />

during one year than a <strong>work</strong>er<br />

with a full-time, open-ended<br />

contract - except for <strong>the</strong> notable<br />

exception of Sweden. From country<br />

to country, <strong>the</strong> average number of<br />

hours <strong>work</strong>ed by an <strong>agency</strong> <strong>work</strong>er<br />

compared to <strong>the</strong> average number<br />

of hours <strong>work</strong>ed by a permanent<br />

full-time employee varies greatly,<br />

from less than 15% in <strong>the</strong> Czech<br />

Republic to equivalent in Sweden.<br />

Sweden<br />

Argentina<br />

Japan<br />

Brazil<br />

Australia<br />

Mexico<br />

Slovakia<br />

Hungary<br />

Greece<br />

Ne<strong>the</strong>rlands<br />

Chile<br />

Switzerland<br />

Italy<br />

Norway<br />

Poland<br />

France<br />

Czech Republic<br />

Belgium<br />

Average number of hours <strong>work</strong>ed *<br />

840<br />

1,021<br />

1,625<br />

1,627<br />

730<br />

1,389<br />

697<br />

1,902<br />

690<br />

1,643<br />

465<br />

1,802<br />

450<br />

1,422<br />

419<br />

1,969<br />

382<br />

1,542<br />

370<br />

1,992<br />

288<br />

1,568<br />

251<br />

0 500 1,000 1,500 2,000<br />

1,120<br />

1,200<br />

1,354<br />

1,320<br />

1,589<br />

1,689<br />

1,721<br />

1,772<br />

1,769<br />

1,820<br />

1,893<br />

1,989<br />

2,121<br />

Average per full-time permanent employee<br />

Average per <strong>agency</strong> <strong>work</strong>er<br />

* By an individual during one year<br />

Sources : <strong>Ciett</strong> National Federations, ILO 2009<br />

26


Most <strong>agency</strong> <strong>work</strong> assignments<br />

are more than one month long<br />

Agency <strong>work</strong>ers<br />

in numbers<br />

In most countries, <strong>the</strong> average<br />

length of assignment of an <strong>agency</strong><br />

<strong>work</strong>er exceeds one month, and<br />

often even exceeds three, <strong>the</strong><br />

notable exceptions being Italy [66%]<br />

and Poland [63%], where more than<br />

half of <strong>the</strong> assignments are less than<br />

one month long. All assignments<br />

in South Korea are over one month<br />

long, and only 4% of assignments in<br />

Sweden last for less than a month.<br />

South Korea<br />

Sweden<br />

Germany<br />

Chile<br />

Peru<br />

Japan<br />

South Africa<br />

Macedonia<br />

Greece<br />

Austria<br />

Australia<br />

Brazil<br />

Argentina<br />

Average length of <strong>agency</strong> <strong>work</strong> assignments *<br />

34%<br />

66%<br />

4%<br />

24%<br />

72%<br />

7%<br />

29%<br />

64%<br />

9%<br />

39%<br />

52%<br />

10%<br />

12%<br />

27%<br />

23%<br />

63%<br />

65%<br />

16%<br />

23%<br />

61%<br />

17%<br />

38%<br />

45%<br />

18%<br />

39%<br />

43%<br />

19%<br />

17%<br />

64%<br />

24%<br />

31%<br />

45%<br />

25%<br />

45%<br />

25%<br />

35%<br />

40%<br />

30%<br />

Ne<strong>the</strong>rlands<br />

27%<br />

30%<br />

43%<br />

Czech Republic<br />

27%<br />

38%<br />

35%<br />

Switzerland<br />

30%<br />

30%<br />

40%<br />

USA<br />

32%<br />

18%<br />

50%<br />

Mexico<br />

34%<br />

12%<br />

54%<br />

Belgium<br />

37%<br />

19%<br />

44%<br />

France<br />

45%<br />

25%<br />

30%<br />

Poland<br />

63%<br />

37%<br />

Italy<br />

66%<br />

23%<br />

12%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

Short-term [< 1 month] Medium-term [1 – 3 months] Long-term [3 months]<br />

* <strong>The</strong> length of an assignment refers to <strong>the</strong> duration spent executing a specific job in one single company. A contract can be renewed several times, depending on <strong>the</strong> legal<br />

obligations of <strong>the</strong> country in question, to fulfil one single assignment. If <strong>the</strong> <strong>work</strong>er changes function in <strong>the</strong> same company, or executes <strong>the</strong> same job in ano<strong>the</strong>r company, <strong>the</strong>n<br />

<strong>the</strong> assignment is said to have changed.<br />

27


3. <strong>The</strong> profile of <strong>agency</strong> <strong>work</strong>ers<br />

• Differences in gender balance depend on <strong>the</strong><br />

socio-economic fabric of a country.<br />

• Three in five <strong>agency</strong> <strong>work</strong>ers are aged less<br />

than 30.<br />

• Nearly three in four <strong>agency</strong> <strong>work</strong>ers have at<br />

best finished <strong>the</strong>ir secondary education.<br />

• <strong>The</strong> motive to <strong>work</strong> via an <strong>agency</strong> is usually to<br />

gain <strong>work</strong> experience.<br />

• A significant proportion of <strong>agency</strong> <strong>work</strong>ers do<br />

not seek a permanent employment.<br />

• Most <strong>agency</strong> <strong>work</strong>ers are satisfied with <strong>the</strong>ir<br />

job.<br />

• Agency <strong>work</strong> is mostly used in <strong>the</strong><br />

manufacturing and services sectors.<br />

28


a. General trends<br />

29


Differences in gender balance depend<br />

on <strong>the</strong> socio-economic fabric of a country<br />

From country to country, differences<br />

in gender balance in <strong>agency</strong><br />

<strong>work</strong> are determined by <strong>the</strong><br />

particular socio-economic fabric<br />

and economic history of each<br />

country, as well as by <strong>the</strong> sectors<br />

allowed to use <strong>agency</strong> <strong>work</strong>. More<br />

services-oriented markets tend<br />

to employ more women, such as<br />

Sweden [60% of women and 57%<br />

in <strong>the</strong> services sector], whereas<br />

markets with a strong industrial fibre<br />

usually employ more men, such as<br />

Germany [70% of men and 48% in<br />

<strong>the</strong> manufacturing sector].<br />

Australia<br />

Japan<br />

Finland<br />

Denmark<br />

China<br />

Sweden<br />

Colombia<br />

UK<br />

Greece<br />

USA<br />

Brazil<br />

Czech Republic<br />

Poland<br />

Chile<br />

Norway<br />

Romania<br />

Italy<br />

South Africa<br />

Ne<strong>the</strong>rlands<br />

Mexico<br />

Hungary<br />

Slovenia<br />

Slovakia<br />

Belgium<br />

Macedonia<br />

Germany<br />

France<br />

Switzerland<br />

Austria<br />

Agency <strong>work</strong>ers’ gender balance<br />

30% 70%<br />

34%<br />

34%<br />

39%<br />

40%<br />

40%<br />

42%<br />

42%<br />

44%<br />

44%<br />

46%<br />

48%<br />

48%<br />

49%<br />

51%<br />

52%<br />

52%<br />

52%<br />

53%<br />

54%<br />

54%<br />

56%<br />

57%<br />

58%<br />

66%<br />

70%<br />

71%<br />

66%<br />

66%<br />

61%<br />

60%<br />

60%<br />

58%<br />

58%<br />

56%<br />

56%<br />

54%<br />

52%<br />

52%<br />

51%<br />

49%<br />

49%<br />

48%<br />

48%<br />

47%<br />

46%<br />

46%<br />

44%<br />

43%<br />

42%<br />

34%<br />

30%<br />

29%<br />

75%<br />

25%<br />

80% 20%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

Male<br />

Female<br />

30


Most <strong>agency</strong> <strong>work</strong>ers<br />

are aged below 30<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

Over-represented in <strong>the</strong> <strong>agency</strong><br />

<strong>work</strong> sector, when compared to <strong>the</strong><br />

total active <strong>work</strong>ing population,<br />

most <strong>agency</strong> <strong>work</strong>ers are aged<br />

below 30. Agency <strong>work</strong> often serves<br />

as a first professional experience for<br />

first-time entrants into <strong>the</strong> labour<br />

market, providing <strong>the</strong>m with a<br />

valuable initial experience or serving<br />

as a stepping-stone to permanent<br />

employment. <strong>The</strong> three notable<br />

exceptions to this trend are <strong>the</strong><br />

USA [68% over 30], Germany [60%<br />

over 30], and Macedonia [69% over<br />

30]. This can be explained by <strong>the</strong><br />

fact that in some of <strong>the</strong>se countries<br />

<strong>agency</strong> <strong>work</strong> is culturally accepted<br />

as a viable alternative to permanent<br />

employment.<br />

Age distribution of <strong>agency</strong> <strong>work</strong>ers<br />

China<br />

30% 30% 30% 10%<br />

Macedonia 0% 9%<br />

22%<br />

45%<br />

24%<br />

France 3% 26%<br />

21% 34% 16%<br />

USA 5% 13%<br />

16%<br />

36%<br />

32%<br />

Sweden 5%<br />

21%<br />

26%<br />

31%<br />

17%<br />

Romania 6%<br />

29%<br />

23%<br />

33%<br />

8%<br />

Italy 6%<br />

27%<br />

25%<br />

34%<br />

8%<br />

Slovakia 7% 24%<br />

30%<br />

24%<br />

12%<br />

Slovenia 7%<br />

20%<br />

34%<br />

34%<br />

6%<br />

Germany 7%<br />

17%<br />

16%<br />

38%<br />

22%<br />

Colombia 8%<br />

21%<br />

34%<br />

30%<br />

12%<br />

Greece 8%<br />

31%<br />

34%<br />

21%<br />

6%<br />

Czech Republic 8%<br />

28%<br />

21%<br />

25%<br />

18%<br />

Japan 8.3%<br />

37%<br />

26.9%<br />

13%<br />

14,8%<br />

Chile 9%<br />

28%<br />

24%<br />

27%<br />

12%<br />

Uruguay 10%<br />

25%<br />

40%<br />

20%<br />

5%<br />

Switzerland 10%<br />

30%<br />

15%<br />

30%<br />

15%<br />

Mexico 10%<br />

33%<br />

26%<br />

23%<br />

8%<br />

Belgium 10%<br />

27%<br />

19%<br />

32%<br />

12%<br />

South Africa 11%<br />

40%<br />

39%<br />

6% 4%<br />

Ne<strong>the</strong>rlands<br />

15%<br />

32%<br />

15% 26%<br />

13%<br />

Poland<br />

17%<br />

33%<br />

26%<br />

18%<br />

7%<br />

Brazil<br />

25%<br />

20%<br />

30%<br />

15%<br />

10%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

< 21 21 - 25 26 - 30 31 - 45 > 45<br />

31


Most <strong>agency</strong> <strong>work</strong>ers<br />

have only school-leaving qualification<br />

In most countries, <strong>the</strong> majority<br />

of <strong>agency</strong> <strong>work</strong>ers have a low to<br />

medium initial education level. On<br />

average, 51% of <strong>agency</strong> <strong>work</strong>ers<br />

<strong>world</strong>wide have finished secondary<br />

school, and 23% have not. Spain<br />

[56%] and <strong>the</strong> Czech Republic [70%]<br />

are <strong>the</strong> only countries where a<br />

majority of <strong>agency</strong> <strong>work</strong>ers have<br />

not completed <strong>the</strong>ir secondary<br />

education. Agency <strong>work</strong> can play<br />

an important role in helping <strong>the</strong>se<br />

low-skilled <strong>work</strong>ers enter <strong>the</strong><br />

labour market and gain valuable<br />

experience.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

46%<br />

52%<br />

49%<br />

48%<br />

14%<br />

80%<br />

31% 27%<br />

58%<br />

63%<br />

Initial education level of <strong>agency</strong> <strong>work</strong>ers<br />

5%<br />

10%<br />

11%<br />

15%<br />

20%<br />

19%<br />

25%<br />

32% 31%<br />

40%<br />

39%<br />

50%<br />

49%<br />

52%<br />

66%<br />

53% 40%<br />

85%<br />

75%<br />

42% 42%<br />

25%<br />

70%<br />

25%<br />

50%<br />

40%<br />

35% 36% 37%<br />

24% 26% 26% 27% 28%<br />

5% 5% 5%<br />

25%<br />

39%<br />

51%<br />

70%<br />

56%<br />

44%<br />

0%<br />

2% 3%<br />

6% 6%<br />

9% 10% 10% 10% 10% 10%<br />

Japan<br />

Norway<br />

Chile<br />

Greece<br />

Finland<br />

Australia<br />

Portugal*<br />

South Africa<br />

Sweden<br />

Uruguay<br />

Switzerland<br />

Bulgaria<br />

USA<br />

Belgium<br />

Ne<strong>the</strong>rlands<br />

Luxembourg*<br />

UK<br />

Brazil<br />

Hungary<br />

Spain*<br />

Czech Republic<br />

Low [not completed secondary education] Medium [completed secondary education] High [completed higher education]<br />

32<br />

* figures for 2008


Sectoral distribution<br />

of <strong>agency</strong> <strong>work</strong> in Europe<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

Reflecting <strong>the</strong> ongoing mutations<br />

of <strong>the</strong> European economies, <strong>the</strong><br />

sectoral distribution of <strong>agency</strong> <strong>work</strong><br />

in Europe has seen a recent trend<br />

away from usage in <strong>the</strong> industrial<br />

sector [30% average], towards a<br />

growing use in <strong>the</strong> services sector<br />

[45% average]. Manufacturing<br />

remains an important user of <strong>agency</strong><br />

<strong>work</strong> in traditionally industrial<br />

economies, such as Poland [70%]<br />

and Hungary [61%]. Czech Republic<br />

[12%] and <strong>the</strong> Ne<strong>the</strong>rlands [10%]<br />

make important use of <strong>agency</strong><br />

<strong>work</strong> in public administration, as<br />

do Luxembourg [27%] and France<br />

[23%] in <strong>the</strong> construction sector.<br />

Hungary is <strong>the</strong> only country to make<br />

significant use of <strong>agency</strong> <strong>work</strong> in <strong>the</strong><br />

agricultural sector [12%].<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

9%<br />

18%<br />

64%<br />

Norway<br />

21%<br />

0%<br />

2%<br />

67%<br />

Greece<br />

90%<br />

Bulgaria*<br />

23%<br />

0%<br />

27%<br />

39%<br />

Luxembourg*<br />

Sectoral distribution of <strong>agency</strong> <strong>work</strong> use in Europe<br />

9%<br />

2%<br />

48%<br />

7%<br />

25%<br />

9% 10% 10% 11% 12%<br />

Denmark*<br />

9%<br />

1%<br />

20% 40%<br />

15%<br />

40%<br />

15%<br />

Portugal*<br />

1%<br />

10%<br />

3%<br />

25%<br />

21%<br />

Ne<strong>the</strong>rlands<br />

4%<br />

8%<br />

2%<br />

57%<br />

29%<br />

Sweden<br />

2%<br />

1%<br />

2%<br />

62%<br />

33%<br />

Spain*<br />

1% 3% 1%<br />

4%<br />

4% 1% 1%<br />

2%<br />

3%<br />

3%<br />

3%<br />

23%<br />

20%<br />

40%<br />

35%<br />

Switzerland<br />

53%<br />

38%<br />

Belgium<br />

37%<br />

France<br />

49%<br />

39% 41%<br />

Italy<br />

14%<br />

2%<br />

8%<br />

30%<br />

46%<br />

Germany<br />

2%<br />

2%<br />

12%<br />

12%<br />

12%<br />

10%<br />

9%<br />

22% 6%<br />

61%<br />

52%<br />

Czech Republic<br />

Hungary*<br />

5%<br />

25%<br />

70%<br />

Poland<br />

Manufacturing Services Construction Public Administration Agriculture O<strong>the</strong>r<br />

* figures for 2008<br />

33


Sectoral distribution<br />

outside Europe<br />

Peru [10%] makes important use of<br />

<strong>agency</strong> <strong>work</strong> in <strong>the</strong> public sector.<br />

Construction is an important user<br />

of <strong>agency</strong> <strong>work</strong> in South Africa<br />

[17%]. More than three in four<br />

Chilean <strong>agency</strong> <strong>work</strong>ers <strong>work</strong> in <strong>the</strong><br />

services sector, and 42% of South<br />

Korean <strong>agency</strong> <strong>work</strong>ers <strong>work</strong> in <strong>the</strong><br />

manufacturing sector.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

9% 16%<br />

16%<br />

3%<br />

10%<br />

2%<br />

2%<br />

Sectoral distribution of <strong>agency</strong> <strong>work</strong> outside Europe<br />

2%<br />

4%<br />

17%<br />

15%<br />

7%<br />

10%<br />

0%<br />

8%<br />

0%<br />

3%<br />

4%<br />

57%<br />

16%<br />

3%<br />

22%<br />

4%<br />

1%<br />

4%<br />

1%<br />

12%<br />

44%<br />

13%<br />

3%<br />

43%<br />

50%<br />

40%<br />

78%<br />

55%<br />

38%<br />

43%<br />

22%<br />

30%<br />

20%<br />

10%<br />

0%<br />

42%<br />

38%<br />

33%<br />

23% 25%<br />

27%<br />

15%<br />

10%<br />

Chile Brazil South Africa Peru Japan Mexico Colombia South Korea<br />

Manufacturing Services Construction Public Administration Agriculture O<strong>the</strong>r<br />

34


<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

b. Agency <strong>work</strong>ers’ motives and satisfaction<br />

35


Outside Europe <strong>the</strong> motive to <strong>work</strong> via an <strong>agency</strong><br />

is usually to find a permanent job or <strong>work</strong> flexibly<br />

<strong>The</strong> main motives to <strong>work</strong> as an<br />

<strong>agency</strong> <strong>work</strong>er are generally <strong>work</strong><br />

and career-related. It is often to<br />

find a permanent position [59% in<br />

<strong>the</strong> USA], but can also be to gain<br />

additional income [68% in Brazil].<br />

Gaining access to training is an<br />

important reason to <strong>work</strong> as an<br />

<strong>agency</strong> <strong>work</strong>er in Brazil [41%] and<br />

<strong>the</strong> USA [40%], but not so in South<br />

Africa [10%] or Japan [3%]. For<br />

those seeking to balance personal<br />

and professional life, <strong>the</strong> inherent<br />

flexibility that <strong>agency</strong> <strong>work</strong> offers<br />

is cited as an important motive in<br />

Japan [45%] and <strong>the</strong> USA [41%], two<br />

countries with a firmly established<br />

<strong>agency</strong> <strong>work</strong> <strong>industry</strong>.<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Find<br />

permanent job<br />

68%<br />

Gain additional<br />

incomes<br />

65%<br />

52%<br />

Gain <strong>work</strong><br />

experience<br />

Reasons to <strong>work</strong> as an <strong>agency</strong> <strong>work</strong>er outside Europe<br />

South Africa<br />

10% 10% 10%<br />

Work in<br />

a flexible way<br />

Brazil<br />

Gain <strong>work</strong><br />

experience<br />

42% 41% 39%<br />

Get information<br />

Gain access<br />

to training<br />

Find<br />

permanent job<br />

32%<br />

Had no<br />

o<strong>the</strong>r choice<br />

Gain access<br />

to training<br />

18%<br />

Work in a<br />

flexible way<br />

50% -<br />

40% -<br />

30% -<br />

20% -<br />

10% -<br />

0% -<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

45%<br />

Work in<br />

a flexible way<br />

59%<br />

Find<br />

permanent job<br />

39%<br />

Had no<br />

o<strong>the</strong>r choice<br />

29%<br />

Japan<br />

19%<br />

41% 40% 40%<br />

Work in<br />

a flexible way<br />

Get<br />

information<br />

Gain <strong>work</strong><br />

experience<br />

Gain <strong>work</strong><br />

experience<br />

USA<br />

Gain access<br />

to training<br />

14%<br />

Find<br />

permanent job<br />

32%<br />

Had no<br />

o<strong>the</strong>r choice<br />

11%<br />

Gain additional<br />

incomes<br />

25%<br />

Gain additional<br />

incomes<br />

3%<br />

Gain access<br />

to training<br />

19%<br />

Get<br />

information<br />

36


In Europe <strong>the</strong> main motive to <strong>work</strong> via an <strong>agency</strong> is<br />

also to find a permanent job or gain <strong>work</strong> experience<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

In most European countries <strong>the</strong><br />

main motive is - as outside Europe -<br />

to find a permanent position [28%<br />

in <strong>the</strong> Ne<strong>the</strong>rlands] or to gain<br />

<strong>work</strong> experience [30% in Finland].<br />

O<strong>the</strong>r non-<strong>work</strong> or career-related<br />

motives exist to engage in <strong>agency</strong><br />

<strong>work</strong>, often to obtain additional<br />

incomes [38% in Finland], but also to<br />

achieve a better <strong>work</strong>-life balance by<br />

<strong>work</strong>ing in a flexible way [28% in <strong>the</strong><br />

Ne<strong>the</strong>rlands].<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

28%<br />

Find<br />

permanent job<br />

18%<br />

Work in a<br />

flexible way<br />

Reasons to <strong>work</strong> as an <strong>agency</strong> <strong>work</strong>er in Europe<br />

Ne<strong>the</strong>rlands<br />

6%<br />

Gain <strong>work</strong><br />

experience<br />

1%<br />

Gain access<br />

to training<br />

35%<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

32%<br />

Find<br />

permanent job<br />

16%<br />

Had no<br />

o<strong>the</strong>r choice<br />

12% 12%<br />

Gain <strong>work</strong><br />

experience<br />

Czech Republic<br />

Gain additional<br />

incomes<br />

9% 8%<br />

Get information<br />

Work in<br />

a flexible way<br />

3%<br />

Gain access<br />

to training<br />

France<br />

60%<br />

Finland<br />

40%<br />

40%<br />

50%<br />

48% 47%<br />

30%<br />

20%<br />

10%<br />

0%<br />

22%<br />

15%<br />

9%<br />

5%<br />

3% 2%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

38%<br />

30%<br />

It suits<br />

current needs<br />

way of life<br />

Had no<br />

o<strong>the</strong>r choice<br />

To gain<br />

experience<br />

Access<br />

to training<br />

To get<br />

permanent contract<br />

Because<br />

of my age<br />

Agency <strong>work</strong> <strong>the</strong><br />

easiest way to get a job<br />

Work in<br />

a flexible way<br />

Gain additional<br />

incomes<br />

Gain <strong>work</strong><br />

experience<br />

37


However a significant proportion of <strong>agency</strong> <strong>work</strong>ers<br />

do not seek a permanent employment<br />

In several countries, a considerable<br />

number of <strong>agency</strong> <strong>work</strong>ers do<br />

not seek a permanent position,<br />

notably in Japan with 58%, <strong>the</strong><br />

Ne<strong>the</strong>rlands with 44% and Australia<br />

with 35%. Whe<strong>the</strong>r it is to find <strong>the</strong><br />

right balance between private<br />

and professional life, or to obtain<br />

additional income or access to<br />

training, <strong>agency</strong> <strong>work</strong> is seen as a<br />

practical answer to match different<br />

aspirations to flexibility.<br />

60%<br />

50%<br />

40%<br />

30%<br />

58%<br />

Percentage of <strong>agency</strong> <strong>work</strong>ers not looking for a permanent job<br />

44%<br />

35%<br />

30%<br />

25%<br />

23%<br />

20%<br />

20%<br />

14%<br />

10%<br />

0%<br />

Japan Ne<strong>the</strong>rlands Australia Switzerland Brazil USA Norway Finland<br />

38


In France <strong>agency</strong> <strong>work</strong><br />

is seen as enhancing employability<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

In France, <strong>the</strong> most cited benefits of<br />

<strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er are <strong>the</strong><br />

“capacity to adapt” [87%] and <strong>the</strong><br />

relations held with colleagues [87%].<br />

Most French <strong>agency</strong> <strong>work</strong>ers are<br />

convinced that <strong>agency</strong> <strong>work</strong> allows<br />

<strong>the</strong>m to acquire new skills [72%]<br />

and <strong>the</strong> professional experience<br />

[85%] <strong>the</strong>y need to improve <strong>the</strong>ir<br />

employability, <strong>the</strong>reby ultimately<br />

providing <strong>the</strong>m with more <strong>work</strong><br />

opportunities.<br />

Capacity to adapt<br />

Relations with colleagues<br />

Professional experience<br />

Team<strong>work</strong> experience<br />

Autonomy<br />

Benefits of <strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er in France<br />

87%<br />

87%<br />

85%<br />

85%<br />

84%<br />

Knowledge of firm<br />

82%<br />

Sense of responsibility<br />

79%<br />

Acquisition of new skills<br />

72%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

Source: OME study: Regards croisés sur l’intérim 2010<br />

39


In <strong>the</strong> USA <strong>agency</strong> <strong>work</strong> is recognised<br />

as an effective means of searching for a job<br />

In <strong>the</strong> USA, <strong>the</strong> most cited benefit<br />

of <strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er is<br />

“career advice or coaching” [20%].<br />

This illustrates <strong>the</strong> key role that<br />

agencies play in <strong>the</strong> triangular <strong>work</strong><br />

relationship, acting as a mentor for<br />

<strong>the</strong> <strong>agency</strong> <strong>work</strong>er. <strong>The</strong> next most<br />

mentioned positive attributes are<br />

<strong>the</strong> “availability of jobs” [17%] and<br />

<strong>the</strong> fact that it is “easier for [<strong>the</strong>] job<br />

applicant” [14%].<br />

Career advice or coaching<br />

Availability of jobs<br />

Easier for job applicant<br />

Access to higher-quality jobs<br />

Shorter length of job search<br />

Benefits of using <strong>agency</strong> <strong>work</strong> in <strong>the</strong> USA<br />

14%<br />

13%<br />

11%<br />

17%<br />

20%<br />

Flexibility in job opportunities<br />

9%<br />

Immediate compensation<br />

7%<br />

Personal touch and guidance<br />

5%<br />

Prescreening of opportunities<br />

4%<br />

Qualified job leads<br />

1%<br />

0% 5% 10% 15% 20%<br />

Source: American Staffing Association 2008<br />

40


Agency <strong>work</strong> is seen as offering<br />

<strong>the</strong> right balance between <strong>work</strong> and private life<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

In a poll of <strong>the</strong> general public taken<br />

in seven European countries, <strong>the</strong> UK<br />

is seen to believe most firmly that<br />

<strong>agency</strong> <strong>work</strong> offers a better balance<br />

between <strong>work</strong> and private life [66%],<br />

followed by Poland [60%], and <strong>the</strong><br />

Ne<strong>the</strong>rlands [58%]<br />

70%<br />

60%<br />

50%<br />

Agrees with <strong>the</strong> statement: “Agency <strong>work</strong> provides a better <strong>work</strong> life balance” *<br />

66%<br />

60%<br />

58%<br />

52%<br />

46%<br />

40%<br />

38%<br />

35% 35%<br />

30%<br />

20%<br />

10%<br />

0%<br />

United<br />

Kingdom<br />

Poland Ne<strong>the</strong>rlands Belgium France Italy Germany Spain<br />

*5373 people were polled in Belgium, France, Germany, Italy, Ne<strong>the</strong>rlands, Poland, Spain and <strong>the</strong> UK. Data was weighted demographically according to age, sex and occupational status.<br />

Source: OME study :Regards croisés sur l’intérim 2010<br />

41


Agency <strong>work</strong> is accepted<br />

as a desirable form of <strong>work</strong><br />

83% of <strong>the</strong> UK general public<br />

would recommend <strong>agency</strong> <strong>work</strong><br />

to family or friends according to a<br />

recent survey. This positive trend is<br />

displayed throughout <strong>the</strong> surveyed<br />

countries with Poland [76%],<br />

Belgium [74%], and France [69%] all<br />

willing to recommend <strong>agency</strong> <strong>work</strong><br />

to people <strong>the</strong>y know.<br />

Agrees with <strong>the</strong> statement: “Would you recommend <strong>agency</strong> <strong>work</strong> to family or friends” *<br />

90%<br />

83%<br />

80%<br />

76%<br />

74%<br />

69%<br />

70%<br />

62%<br />

60%<br />

55%<br />

49%<br />

50%<br />

40%<br />

42%<br />

30%<br />

20%<br />

10%<br />

0%<br />

United<br />

Kingdom<br />

Poland Belgium France Ne<strong>the</strong>rlands Italy Spain Germany<br />

42<br />

*5373 people were polled in Belgium, France, Germany, Italy, Ne<strong>the</strong>rlands, Poland, Spain and <strong>the</strong> UK.<br />

Data was weighted demographically according to age, sex and occupational status.<br />

Source: OME study: Regards croisés sur l’intérim 2010


Most <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> UK<br />

are satisfied with <strong>the</strong>ir job<br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

More than four in five <strong>agency</strong><br />

<strong>work</strong>ers in <strong>the</strong> UK reported that <strong>the</strong>y<br />

were “very” or “fairly” satisfied with<br />

<strong>work</strong>ing via an <strong>agency</strong>, and less than<br />

one in eight said <strong>the</strong>y were “fairly”<br />

or “very” dissatisfied with it. This<br />

counters <strong>the</strong> popular misconception<br />

that <strong>agency</strong> <strong>work</strong>ers are generally<br />

dissatisfied with <strong>the</strong> <strong>work</strong> <strong>the</strong>y find<br />

through an <strong>agency</strong>, and explains <strong>the</strong><br />

important proportion of <strong>agency</strong><br />

<strong>work</strong>ers who wish to continue to<br />

<strong>work</strong> in a flexible way.<br />

Nei<strong>the</strong>r<br />

7%<br />

Fairly satisfied<br />

41%<br />

Satisfaction of <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> UK<br />

Fairly<br />

dissatisfied<br />

9%<br />

Very<br />

dissatisfied<br />

3%<br />

Very<br />

satisfied<br />

40%<br />

Source: REC & BERR Study 2008<br />

43


In <strong>the</strong> Ne<strong>the</strong>rlands most <strong>agency</strong> <strong>work</strong>ers<br />

are satisfied with <strong>the</strong> quality of <strong>the</strong>ir <strong>work</strong><br />

72% of <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong><br />

Ne<strong>the</strong>rlands reported that <strong>the</strong>y<br />

were “satisfied” or “very satisfied”<br />

with <strong>the</strong> content of <strong>the</strong>ir <strong>work</strong>, and<br />

64% with <strong>the</strong> variation. <strong>The</strong> wages<br />

were judged “satisfying” or “very<br />

satisfying” by 61%, as were <strong>the</strong><br />

number of <strong>work</strong>ing days by 80%. This<br />

partially explains why 44% of <strong>agency</strong><br />

<strong>work</strong>ers in <strong>the</strong> Ne<strong>the</strong>rlands do not<br />

seek a permanent position, and<br />

prefer to <strong>work</strong> as temporary <strong>agency</strong><br />

<strong>work</strong>ers.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

3%<br />

6%<br />

12%<br />

59%<br />

Satisfaction of <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> Ne<strong>the</strong>rlands<br />

3%<br />

7%<br />

5% 5%<br />

18%<br />

11%<br />

11%<br />

52%<br />

20%<br />

23%<br />

46%<br />

49%<br />

30%<br />

20%<br />

10%<br />

21%<br />

20%<br />

18%<br />

12%<br />

0%<br />

Number of <strong>work</strong>ing hours<br />

per week<br />

Content of <strong>work</strong> Variation in <strong>work</strong> Wage<br />

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied<br />

44<br />

Source: ABU/ECORYS 2009


In France <strong>agency</strong> <strong>work</strong>ers have a good relationship<br />

with <strong>the</strong>ir employment <strong>agency</strong><br />

<strong>The</strong> profile<br />

of <strong>agency</strong> <strong>work</strong>ers<br />

87% of <strong>agency</strong> <strong>work</strong>ers in France<br />

reported that <strong>the</strong>y were “satisfied”<br />

or “very satisfied” with <strong>the</strong><br />

relationship <strong>the</strong>y had with <strong>the</strong>ir<br />

employment <strong>agency</strong>. 91% were<br />

happy with <strong>the</strong> content of <strong>the</strong>ir<br />

<strong>work</strong>. <strong>The</strong> wages were judged<br />

“satisfying” or “very satisfying”<br />

by 75%, as <strong>the</strong> balance between<br />

professional and private life [81%].<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

Satisfaction of <strong>agency</strong> <strong>work</strong>ers in France<br />

4%<br />

8%<br />

4%<br />

9%<br />

4%<br />

5%<br />

7%<br />

44%<br />

13%<br />

55%<br />

61%<br />

48%<br />

10%<br />

13%<br />

53%<br />

40%<br />

30%<br />

20%<br />

43%<br />

10%<br />

31%<br />

30%<br />

29%<br />

23%<br />

0%<br />

Relationship with<br />

employment <strong>agency</strong><br />

Balance between<br />

professional and private life<br />

Content of <strong>work</strong><br />

Delay between<br />

placements<br />

Wages<br />

Very satisfied Satisfied Dissatisfied Very dissatisfied<br />

Source: OME study :Regards croisés sur l’intérim 2010<br />

45


4. Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

• Agency <strong>work</strong> facilitates transitions in <strong>the</strong><br />

labour market.<br />

• Agency <strong>work</strong> contributes to reducing<br />

unemployment especially by serving as a<br />

stepping-stone into <strong>the</strong> labour market.<br />

• <strong>The</strong> higher <strong>the</strong> <strong>agency</strong> <strong>work</strong> penetration rate,<br />

<strong>the</strong> lower <strong>the</strong> level of undeclared <strong>work</strong>.<br />

• Vulnerable target groups use <strong>agency</strong> <strong>work</strong> as<br />

a means of entering <strong>the</strong> labour market.<br />

• More people are employed after <strong>work</strong>ing as<br />

an <strong>agency</strong> <strong>work</strong>er than before.<br />

46


a. Transitions<br />

47


Agency <strong>work</strong> facilitates transitions<br />

in <strong>the</strong> labour market<br />

Agency <strong>work</strong> broadens <strong>the</strong> range of<br />

<strong>work</strong> solutions available to <strong>work</strong>ers<br />

to meet <strong>the</strong>ir lifestyle choices or<br />

personal constraints at every step of<br />

<strong>the</strong>ir professional lives. Intrinsically<br />

flexible, <strong>agency</strong> <strong>work</strong> can serve as<br />

a stop-gap economic measure, a<br />

means of enhancing employability,<br />

or improving <strong>work</strong>-life balance.<br />

Student<br />

1 st time<br />

entrant<br />

Transitions in <strong>the</strong> labour market<br />

Experienced<br />

<strong>work</strong>er<br />

Laid-off<br />

<strong>work</strong>er<br />

Pensioner<br />

“Factors helping to drive <strong>the</strong> growth<br />

in TAW include its active use to<br />

facilitate <strong>the</strong> re-engagement of<br />

long-term unemployed into <strong>work</strong>,<br />

and a growth in <strong>the</strong> labour force<br />

participation of people that need or<br />

prefer temporary <strong>work</strong>.” *<br />

• Finance<br />

education<br />

whilst<br />

studying<br />

• Provide<br />

temporary<br />

assignments<br />

leading to a<br />

permanent<br />

contract<br />

• Gain a first<br />

professional<br />

experience<br />

• Provide new<br />

opportunities<br />

to evolve and<br />

improve life<br />

conditions<br />

• Provide a flexible<br />

<strong>work</strong>ing solution<br />

to meet familial<br />

responsibilities<br />

• Facilitate<br />

transitions<br />

from one job<br />

to ano<strong>the</strong>r<br />

through<br />

outplacement<br />

services<br />

• Provide extra<br />

financial<br />

revenues<br />

• Improve<br />

<strong>work</strong>-life<br />

balance<br />

* Source: Eurofound - Temporary Agency Work<br />

and Collective Bargaining in <strong>the</strong> EU | 2009<br />

48


Agency <strong>work</strong> contributes<br />

to reducing unemployment<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

By serving as labour market<br />

intermediaries, and improving<br />

<strong>the</strong> matching of <strong>work</strong>ers with<br />

jobs, PrEAs contribute to reducing<br />

unemployment - both frictional and<br />

long-term - and help people enter,<br />

and re-enter, <strong>the</strong> labour market.<br />

Frictional unemployment<br />

By rapidly placing <strong>agency</strong> <strong>work</strong>ers<br />

on assignments, PrEAs reduce <strong>the</strong><br />

frictional rate of unemployment - i.e.<br />

<strong>the</strong> period of inactivity between<br />

jobs - allowing people to remain<br />

active, <strong>the</strong>reby enhancing <strong>the</strong>ir skills<br />

and experience, and helping <strong>the</strong>m to<br />

quickly find a new job.<br />

Long-term unemployment<br />

Working via an <strong>agency</strong> allows <strong>the</strong><br />

long-term unemployed to regain<br />

self-confidence, acquire new skills,<br />

and demonstrate <strong>the</strong>ir capacities to<br />

potential employers.<br />

2.0%<br />

1.8%<br />

1.6%<br />

1.4%<br />

1.2%<br />

1.0%<br />

0.8%<br />

0.6%<br />

0.4%<br />

0.2%<br />

0.0%<br />

2.5%<br />

2.0%<br />

1.5%<br />

1.0%<br />

0.5%<br />

0.0%<br />

Agency <strong>work</strong> penetration rate and unemployment rates<br />

USA<br />

UK<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

1.0%<br />

0.0%<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

3.0%<br />

JP<br />

FR<br />

2.5%<br />

2.0%<br />

1.5%<br />

1.0%<br />

0.5%<br />

0.0%<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

AW penetration Rate<br />

Unemployment Rate<br />

Source : <strong>Ciett</strong> National Federations, IMF 2010<br />

49


. Job creation<br />

50


Less people are unemployed<br />

after <strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er than before<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

Many <strong>agency</strong> <strong>work</strong>ers are officially<br />

registered as “unemployed” before<br />

<strong>work</strong>ing with an <strong>agency</strong> [37%<br />

average]. This proportion falls<br />

to less than half that level after<br />

<strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er [15%<br />

average]. Economists Lawrence<br />

Katz of Harvard University and Alan<br />

Krueger of Princeton University<br />

assert that <strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

was responsible for up to 40% of <strong>the</strong><br />

drastic reduction in unemployment<br />

witnessed in <strong>the</strong> USA in <strong>the</strong> 1990s.<br />

This illustrates <strong>the</strong> double effect<br />

of <strong>agency</strong> <strong>work</strong>’s stepping-stone<br />

function: first, from unemployment<br />

to <strong>work</strong>, and second, from a<br />

temporary contract to a permanent<br />

one.<br />

before<br />

after<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

65%<br />

17%<br />

56%<br />

Unemployed before & after <strong>agency</strong> <strong>work</strong><br />

17%<br />

46%<br />

10%<br />

43%<br />

25%<br />

34%<br />

South Africa Germany Norway France Greece<br />

6%<br />

31%<br />

18%<br />

Czech<br />

Republic<br />

30%<br />

20%<br />

30%<br />

9%<br />

19%<br />

15%<br />

12%<br />

8%<br />

Switzerland Sweden Brazil Ne<strong>the</strong>rlands<br />

* % of <strong>agency</strong> <strong>work</strong>ers that are officially registered as unemployed before and 12 months after temping<br />

51


More people are employed<br />

after <strong>work</strong>ing as an <strong>agency</strong> <strong>work</strong>er than before<br />

On average, <strong>the</strong> proportion of<br />

those in employment before [29%]<br />

and after [59%] having <strong>work</strong>ed<br />

as an <strong>agency</strong> <strong>work</strong>er is more<br />

than doubled. This supports <strong>the</strong><br />

argument that <strong>agency</strong> <strong>work</strong> serves as<br />

a stepping-stone, especially for firsttime<br />

entrants to <strong>the</strong> labour market,<br />

enhancing <strong>work</strong>er employability,<br />

by proposing job assignments and<br />

vocational training.<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

45%<br />

60%<br />

Employed before & after <strong>agency</strong> <strong>work</strong><br />

77%<br />

69%<br />

56%<br />

48%<br />

44%<br />

43%<br />

80%<br />

71%<br />

74%<br />

40%<br />

36%<br />

33%<br />

30%<br />

20%<br />

20%<br />

18%<br />

before<br />

after<br />

10%<br />

0%<br />

Switzerland Belgium Luxembourg Germany Czech Republic Norway Portugal France<br />

6%<br />

* % of <strong>agency</strong> <strong>work</strong>ers that are employed (ei<strong>the</strong>r with a temp, fixed-term or open-ended contracts) before and 12 months after temping<br />

52


Agency <strong>work</strong><br />

is an effective way to land a first job<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

According to a poll carried out<br />

among 5373 European citizens, <strong>the</strong><br />

overwhelming majority of people<br />

believe that <strong>agency</strong> <strong>work</strong> is a good<br />

way to enter <strong>the</strong> job market for <strong>the</strong><br />

first time. <strong>The</strong> United Kingdom and<br />

Belgium hold this view most strongly<br />

with 93% and 86% respectively<br />

agreeing that temporary <strong>agency</strong><br />

<strong>work</strong> is an effective means of getting<br />

a first job. Even in Germany, <strong>the</strong><br />

most sceptical country, 59% believe<br />

temporary <strong>agency</strong> <strong>work</strong> to be<br />

effective.<br />

Agrees with <strong>the</strong> statement: “Agency <strong>work</strong> is an effective way to land a first job” *<br />

100%<br />

92%<br />

90%<br />

86% 85% 84%<br />

82%<br />

80%<br />

80%<br />

71%<br />

70%<br />

60%<br />

59%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

United Kingdom Belgium Poland France Spain Ne<strong>the</strong>rlands Italy Germany<br />

*5373 people were polled in Belgium, France, Germany, Italy, Ne<strong>the</strong>rlands, Poland, Spain and <strong>the</strong> UK. Data was weighted demographically according to age, sex and occupational status.<br />

Source: OME study :Regards croisés sur l’intérim 2010<br />

53


Agency <strong>work</strong> is an effective way<br />

of finding permanent <strong>work</strong>.<br />

Temporary <strong>agency</strong> <strong>work</strong> helps<br />

people find permanent <strong>work</strong>. A<br />

study carried shows that across<br />

Europe <strong>the</strong>re is acceptance of <strong>the</strong><br />

fact that temporary employment<br />

agencies are <strong>the</strong> best way of<br />

securing permanent <strong>work</strong>. In <strong>the</strong><br />

United Kingdom 90% agreed, in <strong>the</strong><br />

Ne<strong>the</strong>rlands [78%] and Poland [77%]<br />

Agrees with <strong>the</strong> statement: “Agency <strong>work</strong> is an effective way of finding a permanent contract” *<br />

100%<br />

90%<br />

90%<br />

80%<br />

78% 77%<br />

70%<br />

69%<br />

61%<br />

60%<br />

50%<br />

40%<br />

52%<br />

43%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

United Kingdom Ne<strong>the</strong>rlands Poland Belgium France Spain Germany Italy<br />

54<br />

*5373 people were polled in Belgium, France, Germany, Italy, Ne<strong>the</strong>rlands, Poland, Spain and <strong>the</strong> UK. Data was weighted demographically according to age, sex and occupational status.<br />

Source: OME study :Regards croisés sur l’intérim 2010


Temporary <strong>work</strong> agencies<br />

are <strong>the</strong> best channel to find permanent <strong>work</strong><br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

A Study from <strong>the</strong> Ne<strong>the</strong>rlands shows<br />

that temporary <strong>agency</strong> <strong>work</strong> is <strong>the</strong><br />

most effective means of making <strong>the</strong><br />

transition from temporary <strong>work</strong><br />

into a permanent contract. 29% of<br />

those surveyed used temporary<br />

employment agencies for this<br />

purpose compared with adverts in<br />

newspapers and magazines [14%]<br />

and unsolicited applications [14%]<br />

How do temporary employees find permanent <strong>work</strong> in <strong>the</strong> Ne<strong>the</strong>rlands<br />

Temporary <strong>work</strong> agencies<br />

29%<br />

Advertisements in newspapers and magazines<br />

unsolicited job applications<br />

via friends, family, acquaintances, colleagues<br />

14%<br />

14%<br />

14%<br />

Internet<br />

8%<br />

recruitment and selection <strong>agency</strong><br />

4%<br />

centre for <strong>work</strong> and Income<br />

2%<br />

secondment <strong>agency</strong><br />

2%<br />

via school, education/training programme, internship<br />

2%<br />

Job/career fair<br />

1%<br />

re-integration company<br />

0%<br />

O<strong>the</strong>r<br />

10%<br />

Source: ABU/ECORYS 2009<br />

55


Temp-to-hire conversion rates in <strong>the</strong> USA<br />

vary according to <strong>the</strong> segment<br />

<strong>The</strong> median temp-to-hire<br />

conversion rate in <strong>the</strong> USA is<br />

20%. This confirms <strong>agency</strong> <strong>work</strong>’s<br />

acknowledged stepping-stone<br />

function, whereby it facilitates<br />

transitions from a temporary<br />

contract to a permanent one.<br />

However, conversion rates can<br />

vary widely according to <strong>the</strong><br />

segment. Commercial <strong>agency</strong> <strong>work</strong><br />

has a much higher temp-to-hire<br />

conversion rate than professional<br />

<strong>agency</strong> <strong>work</strong>. <strong>The</strong> companies that<br />

report <strong>the</strong> highest median rate of<br />

conversion - 40% - derive most of<br />

<strong>the</strong>ir revenue from <strong>the</strong> office/clerical<br />

segment. At <strong>the</strong> o<strong>the</strong>r end of <strong>the</strong><br />

spectrum, companies that derive a<br />

majority of <strong>the</strong>ir revenue from <strong>the</strong><br />

health sector report a median tempto-hire<br />

conversion rate of 10%.<br />

56<br />

40%<br />

35%<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

40%<br />

Temp-to-hire conversion rate in <strong>the</strong> USA*<br />

30%<br />

20% 20% 20%<br />

Office / Clerical Industrial IT Finance / Acc Tech / Eng Healthcare<br />

10%<br />

* % of <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> USA that get an open-ended contract after temping<br />

Source: Staffing Industry Analysts 2008 - www.staffing<strong>industry</strong>.com


<strong>The</strong> higher <strong>the</strong> <strong>agency</strong> <strong>work</strong> penetration rate,<br />

<strong>the</strong> lower <strong>the</strong> level of undeclared <strong>work</strong><br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

<strong>The</strong>re appears to be an inverse<br />

correlation between penetration<br />

rate of <strong>agency</strong> <strong>work</strong> and level of<br />

undeclared <strong>work</strong>. By serving as a<br />

legal alternative in sectors often<br />

plagued by illegal labour, <strong>agency</strong><br />

<strong>work</strong> can bring to <strong>the</strong> labour market<br />

thousands previously illegally<br />

employed, and hence serve as<br />

a means of fighting undeclared<br />

<strong>work</strong>. Working via an <strong>agency</strong> allows<br />

<strong>work</strong>ers to take full advantage<br />

of all <strong>the</strong> legal protection and<br />

enforcement mechanisms available,<br />

unlike <strong>the</strong> often insecure and<br />

potentially risky <strong>work</strong> available<br />

through illegal channels.<br />

4.0%<br />

3.5%<br />

3.0%<br />

2.5%<br />

2.0%<br />

1.5%<br />

1.0%<br />

0.5%<br />

Agency <strong>work</strong> penetration rates and undeclared <strong>work</strong> as a percentage of GDP<br />

FI<br />

SE<br />

NL<br />

FR<br />

DE<br />

UK<br />

BE<br />

IT<br />

0.0%<br />

0% 5% 10% 15% 20% 25% 30% 35%<br />

GR<br />

Sources: EuroStat, <strong>Ciett</strong> National Federations, Bain analysis<br />

57


In Italy <strong>the</strong> lifting of restrictions on <strong>agency</strong> <strong>work</strong><br />

helped curb undeclared <strong>work</strong><br />

It was only in 1997, with <strong>the</strong> “Treu<br />

package”, that <strong>agency</strong> <strong>work</strong> was<br />

legally recognised in Italy. Since<br />

<strong>the</strong>n, additional regulatory changes<br />

were introduced to fur<strong>the</strong>r liberalise<br />

<strong>the</strong> Italian <strong>agency</strong> <strong>work</strong> <strong>industry</strong>: in<br />

2000, with <strong>the</strong> opening up of <strong>the</strong><br />

agricultural, construction and public<br />

sectors, and in 2003, with <strong>the</strong> “Biagi<br />

law”. In 2005, a study conducted<br />

by <strong>the</strong> Italian National Institute<br />

of Statistics demonstrated that<br />

<strong>agency</strong> <strong>work</strong> played a key role in <strong>the</strong><br />

reduction of undeclared <strong>work</strong>.<br />

15.0%<br />

14.5%<br />

14.0%<br />

13.5%<br />

13.0%<br />

12.5%<br />

Agency <strong>work</strong> and undeclared <strong>work</strong> rates in Italy<br />

Legal recognition<br />

of AW<br />

Lifting of sectoral bans<br />

Lifting of fur<strong>the</strong>r<br />

restrictions to AW<br />

1.0%<br />

0.9%<br />

0.8%<br />

0.7%<br />

0.6%<br />

0.5%<br />

0.4%<br />

0.3%<br />

12.0%<br />

0.2%<br />

11.5%<br />

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />

0.1%<br />

Undeclared <strong>work</strong> rate<br />

AW penetration rate<br />

Source: Confinterim.it, EuroStat, Instuto Nazionale di Statistica, LitSearch<br />

58


Agency <strong>work</strong> facilitates quality transitions<br />

through skills upgrading<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

In many EU countries, <strong>the</strong> <strong>agency</strong><br />

<strong>work</strong> <strong>industry</strong> has developed specific<br />

training schemes to facilitate<br />

access to vocational training<br />

for <strong>agency</strong> <strong>work</strong>ers. In seven EU<br />

countries - Austria, Belgium, France,<br />

Italy, Luxembourg, Spain, and <strong>the</strong><br />

Ne<strong>the</strong>rlands - sectoral bi-partite<br />

training funds have been set up.<br />

Countries with more long-term<br />

training programmes tend to train<br />

less temporary <strong>agency</strong> <strong>work</strong>ers than<br />

countries with short-term training<br />

programmes. This reflects <strong>the</strong> fact<br />

that <strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

establishes training schemes to<br />

suit <strong>the</strong> specific needs of <strong>the</strong> labour<br />

market. It is also generally <strong>the</strong><br />

<strong>agency</strong> that takes <strong>the</strong> initiative to<br />

train a <strong>work</strong>er.<br />

Training programmes provided to <strong>agency</strong> <strong>work</strong>ers<br />

FR BE NL ES IT<br />

Number of trained <strong>agency</strong> <strong>work</strong>ers [x 1.000] 270,0 19,6 138,7 10,9 204,2<br />

% of trained <strong>agency</strong> <strong>work</strong>ers 12,3% 3,6% 19,0% 1,4% 35,6%<br />

Number of training hours [x 1.000] 10.110 303 760 1.221<br />

Number of training hours per trained <strong>agency</strong><br />

<strong>work</strong>er<br />

Amount invested in training by temporary <strong>work</strong><br />

agencies [x 1.000.000]<br />

47,4 15,4 69,8 6,0<br />

331 4,7 35 4,8 149<br />

Amount invested per trained <strong>agency</strong> <strong>work</strong>er (€) 1.225,9 239,7 252,3 440,4 729,6<br />

Amount invested in training in % of wages 2,15% 1 0,50% 2 1,02% 1,25%<br />

1 - Maximum contribution rate 2 - Minimum contribution rate as determined by collective labour agreement<br />

Source : IDEA Consult 2008<br />

59


c. Inclusion & diversity


<strong>The</strong> number of <strong>agency</strong> <strong>work</strong>ers<br />

over 50 is increasing in Italy<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

Workers over 50 are underrepresented<br />

in <strong>the</strong> Italian <strong>agency</strong><br />

<strong>work</strong> population. However, <strong>the</strong>ir<br />

numbers are continually on <strong>the</strong><br />

rise. In 2004, 2006 and 2008, <strong>the</strong><br />

proportion of <strong>agency</strong> <strong>work</strong>ers aged<br />

over 50 has steadily increased from<br />

3% to 4% to 5%.<br />

30%<br />

25%<br />

Age distribution of <strong>agency</strong> <strong>work</strong>ers in Italy in 2004, 2006 & 2008<br />

28%<br />

27% 27% 27%<br />

23%<br />

22%<br />

20%<br />

“Agency <strong>work</strong> offers groups such as<br />

migrant <strong>work</strong>ers, women returning<br />

from childcare breaks, disabled and<br />

unemployed people across to <strong>the</strong><br />

labour market. In principle, <strong>agency</strong><br />

<strong>work</strong> can help <strong>work</strong>ers develop<br />

<strong>the</strong>ir skills and experience, <strong>the</strong>reby<br />

offering pathways into more secure<br />

employment.” *<br />

2004<br />

2006<br />

2008<br />

15%<br />

10%<br />

5%<br />

19%<br />

19%<br />

18%<br />

13% 13%<br />

12%<br />

11%<br />

14%<br />

16%<br />

3%<br />

4%<br />

5%<br />

0%<br />

* Source: Eurofound - Temporary Agency Work<br />

and Collective Bargaining in <strong>the</strong> EU | 2009<br />

50<br />

Source : Ebitemp 2009<br />

61


In France <strong>the</strong> proportion<br />

of older <strong>agency</strong> <strong>work</strong>ers keeps on increasing<br />

In France, <strong>the</strong> number of <strong>agency</strong><br />

<strong>work</strong>ers aged over 50 increases<br />

every year, and has more than<br />

doubled between 1996 [4.1%] and<br />

2009 [8.6%]. This trend mirrors both<br />

<strong>the</strong> ongoing demographic crunch,<br />

with an ever ageing population,<br />

and <strong>the</strong> desire of older <strong>work</strong>ers<br />

to remain active. <strong>The</strong> <strong>agency</strong><br />

<strong>work</strong> <strong>industry</strong> helps <strong>the</strong>se older<br />

<strong>work</strong>ers to remain in <strong>the</strong> labour<br />

market, providing <strong>the</strong>m with more<br />

flexible opportunities to meet <strong>the</strong>ir<br />

expectations.<br />

9.0%<br />

8.0%<br />

7.0%<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

4.1%<br />

Percentage of <strong>agency</strong> <strong>work</strong>ers aged 50 & over in France<br />

6.9%<br />

6.7%<br />

6.4%<br />

6.1%<br />

5.7% 5.8%<br />

5.3%<br />

4.9%<br />

4.3% 4.4%<br />

7.5%<br />

8.0%<br />

8.6%<br />

2.0%<br />

1.0%<br />

0.0%<br />

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009<br />

Source : Dares 2010<br />

62


Agency <strong>work</strong>ers from target groups<br />

are on <strong>the</strong> rise in <strong>the</strong> Ne<strong>the</strong>rlands<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

Agency <strong>work</strong> gives “outsiders” a<br />

viable access to <strong>the</strong> labour market,<br />

<strong>the</strong>reby increasing labour market<br />

participation and diversity. Ethnic<br />

minorities, older people, labour<br />

incapacitated and <strong>the</strong> long term<br />

unemployed accounted for 31% of<br />

<strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> Ne<strong>the</strong>rlands<br />

in 2008. This is up from 27% in<br />

2006. Agency <strong>work</strong> increases<br />

labour market flexibility, whilst<br />

providing basic rights and <strong>work</strong>ing<br />

conditions to <strong>agency</strong> <strong>work</strong>ers.<br />

Because <strong>the</strong> <strong>agency</strong> remains <strong>the</strong><br />

<strong>work</strong>er’s employer, his rights are<br />

capitalised from one assignment<br />

to <strong>the</strong> next. Agency <strong>work</strong> thus<br />

integrates “outsiders” in <strong>the</strong> labour<br />

market, who <strong>the</strong>n benefit from <strong>the</strong><br />

same <strong>work</strong>ing conditions as those<br />

provided to o<strong>the</strong>r <strong>agency</strong> <strong>work</strong>ers.<br />

<strong>The</strong> percentage of special target groups among temporary employees in <strong>the</strong> Ne<strong>the</strong>rlands<br />

2006<br />

2008<br />

35%<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

14%<br />

18%<br />

12%<br />

13%<br />

Ethnic minorities Older <strong>work</strong>ers (45+) Labour incapacitated Long-term<br />

unemployed<br />

2%<br />

1%<br />

3%<br />

2%<br />

27%<br />

31%<br />

Total (corrected for<br />

overlap)<br />

Source: ABU/ECORYS 2009<br />

63


Disabled temporary <strong>agency</strong> <strong>work</strong>ers<br />

take on a range of positions<br />

Agency <strong>work</strong>’s contribution<br />

to a better functioning labour market<br />

In France, 43% of disabled <strong>work</strong>ers<br />

are classified as skilled blue collar<br />

<strong>work</strong>ers, while 7% occupy middle<br />

management positions. 16% are<br />

white collar employees and 34%<br />

are unskilled blue collar <strong>work</strong>ers.<br />

Through private employment<br />

agencies, disabled <strong>agency</strong> <strong>work</strong>ers<br />

are integrated at every level of<br />

companies.<br />

Employment of disabled <strong>agency</strong> <strong>work</strong>ers in France<br />

White<br />

collar16%<br />

Unskilled blue<br />

collar 34%<br />

Skilled<br />

blue collar<br />

43%<br />

Middle<br />

management<br />

7%<br />

Source : Prisme 2010<br />

64


5. Companies’ rationale to use temporary <strong>agency</strong> <strong>work</strong><br />

• Agency <strong>work</strong> improves companies’<br />

competitiveness.<br />

• Agency <strong>work</strong> is not a substitute for permanent<br />

employment.<br />

• Companies use <strong>agency</strong> <strong>work</strong> to meet peaks in<br />

demand or to fill in for absent employees.<br />

65


Agency <strong>work</strong> improves<br />

companies’ competitiveness<br />

To remain competitive,<br />

organisations must improve <strong>the</strong>ir<br />

response to output fluctuations,<br />

by adapting <strong>the</strong>ir <strong>work</strong>force and<br />

skills to changes in a competitive<br />

environment, and focusing on <strong>the</strong>ir<br />

core business. <strong>The</strong> range of services<br />

proposed by private employment<br />

agencies answers <strong>the</strong>se challenges.<br />

<strong>The</strong> use of <strong>agency</strong> <strong>work</strong> helps companies to improve competitiveness<br />

Sustainability of<br />

permanent jobs<br />

Close adaptation<br />

to activity fluctuation<br />

AW use<br />

“TAW enables user firms to make<br />

relatively easy labour adjustments<br />

and cost savings by outsourcing<br />

some responsibility for recruitment<br />

and administration.” *<br />

Better<br />

resistance<br />

to economic<br />

cycles<br />

Virtuous circle of<br />

company and<br />

employment<br />

growth<br />

Productivity<br />

gains<br />

Source: Eurofound - Temporary Agency Work<br />

and Collective Bargaining in <strong>the</strong> EU | 2009<br />

Competitiveness<br />

improvement<br />

66


21% of European companies<br />

make use of temporary <strong>agency</strong> <strong>work</strong>ers<br />

Companies’ rationale to use<br />

temporary <strong>agency</strong> <strong>work</strong><br />

Across <strong>the</strong> EU, <strong>agency</strong> <strong>work</strong> is<br />

used by companies to remain<br />

competitive. In Belgium 57% of<br />

companies used temporary <strong>agency</strong><br />

<strong>work</strong> at some point in 2009. <strong>The</strong><br />

figure was also high in Denmark<br />

[49%], France [35%] and <strong>the</strong> UK<br />

[35%]. <strong>The</strong> figure is highest in<br />

countries with <strong>the</strong> most developed<br />

labour polices and lowest in<br />

countries which still need to enact<br />

labour market reforms.<br />

60.0%<br />

50.0%<br />

40.0%<br />

30.0%<br />

57%<br />

49%<br />

Companies employing temporary <strong>agency</strong> <strong>work</strong>ers in 2009 (%)<br />

35% 35%<br />

34%<br />

29%<br />

28%<br />

24% 23% 22% 22% 21% 21%<br />

20.0%<br />

17% 17% 16% 15%<br />

12%<br />

10.0%<br />

9%<br />

8% 8% 8% 7%<br />

6% 5% 5%<br />

5%<br />

5%<br />

4%<br />

3% 2%<br />

0.0%<br />

BE<br />

DK<br />

FR<br />

UK<br />

FI<br />

LU<br />

NL<br />

IT<br />

EU27<br />

SE<br />

DE<br />

ES<br />

IE<br />

MK<br />

AT<br />

SI<br />

BG<br />

PT<br />

CY<br />

MT<br />

HU<br />

LV<br />

CZ<br />

EL<br />

RO<br />

LT<br />

EE<br />

SK<br />

HR<br />

TR<br />

PL<br />

Source: Eurofund - European Company Survey 2009<br />

67


Agency <strong>work</strong> is not a substitute<br />

for permanent employment<br />

Research has shown that 80% of jobs<br />

created by <strong>agency</strong> <strong>work</strong> would not<br />

have existed if <strong>agency</strong> <strong>work</strong> were<br />

not an option. This confirms that<br />

<strong>agency</strong> <strong>work</strong> is not a substitute for<br />

permanent employment, notably<br />

because it does not meet <strong>the</strong> same<br />

needs, as it is generally used for<br />

specific flexibility requirements that<br />

cannot be covered by permanent<br />

contracts. <strong>The</strong> fact that long-term<br />

assignments are rare - and <strong>the</strong><br />

persistently high turnover of<br />

<strong>agency</strong> <strong>work</strong>ers - fur<strong>the</strong>r supports<br />

this assumption. Any limited<br />

substitution effect must be assessed<br />

in a long-term perspective, as part<br />

of companies’ overall HR strategy to<br />

integrate a flexible component into<br />

<strong>the</strong>ir <strong>work</strong>force.<br />

Job creation in <strong>the</strong> UK: What is <strong>the</strong> alternative to <strong>the</strong> use of <strong>agency</strong> <strong>work</strong><br />

No job creation instead<br />

of <strong>agency</strong> <strong>work</strong><br />

Job creation instead<br />

of <strong>agency</strong> <strong>work</strong><br />

Partial job creation instead<br />

of <strong>agency</strong> <strong>work</strong><br />

Internal<br />

flexibility<br />

solutions<br />

61%<br />

Work not done<br />

4%<br />

Does not know<br />

4%<br />

Hire permanent<br />

<strong>work</strong>ers<br />

15%<br />

External<br />

flexibility<br />

solutions<br />

16%<br />

Source: Continental Research Corporate, Sept 2005<br />

68


In <strong>the</strong> USA <strong>the</strong> main reason to use <strong>agency</strong> <strong>work</strong>ers is<br />

to fill in for absent employees or temporary vacancies<br />

Companies’ rationale to use<br />

temporary <strong>agency</strong> <strong>work</strong><br />

By using <strong>agency</strong> <strong>work</strong>ers, companies<br />

aim to minimise <strong>the</strong>ir exposure to<br />

risk when <strong>the</strong> near future seems<br />

uncertain. Once <strong>the</strong> outlook<br />

brightens, <strong>agency</strong> <strong>work</strong> helps<br />

companies to cope with sudden<br />

increases in demand or to face<br />

seasonal fluctuations. <strong>The</strong> use of<br />

<strong>agency</strong> <strong>work</strong>ers is also an effective<br />

means of finding <strong>the</strong> right employee,<br />

whe<strong>the</strong>r to fill a permanent position,<br />

or to replace a <strong>work</strong>er leaving.<br />

Main reason to hire <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> USA<br />

Fill in for absent employees or temporary vacancies<br />

Provide extra support during busy times or seasons<br />

Staff special short-term projects<br />

68%<br />

72%<br />

80%<br />

Help find good permanent employees<br />

59%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%<br />

Source: American Staffing Association 2009<br />

69


In <strong>the</strong> UK <strong>the</strong> main reason<br />

to use <strong>agency</strong> <strong>work</strong>ers is to meet peaks in demand<br />

Three in five employers say that<br />

<strong>the</strong>y use <strong>agency</strong> <strong>work</strong>ers to fill<br />

a temporary position “always”<br />

or “most of <strong>the</strong> time”. <strong>The</strong> o<strong>the</strong>r<br />

most frequently used methods to<br />

cover for temporary vacancies are<br />

resorting to casual staff, followed<br />

by fixed term contract <strong>work</strong>ers and<br />

increased over-time. <strong>The</strong> overall<br />

flexibility provided by <strong>agency</strong> <strong>work</strong><br />

is a key argument for <strong>the</strong> services<br />

sector, whereas <strong>the</strong> manufacturing<br />

sector uses it to evaluate staff for<br />

permanent recruitment, or merely<br />

to help keep running costs down.<br />

Meeting peaks in demand/covering busy periods<br />

Why do employers use temporary <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> UK<br />

Overall flexibility<br />

Vetting staff before permanent recruitment<br />

Covering short term staff leave/absences<br />

Helping keep running costs down<br />

Obtaining access to skills you cannot o<strong>the</strong>rwise recruit<br />

Allowing <strong>the</strong> business to try a new business line or<br />

<strong>work</strong>ing patterns without permanent commitment<br />

2.66<br />

2.63<br />

2.8<br />

2.99<br />

3.21<br />

3.35<br />

3.65<br />

3.5<br />

3.56<br />

3.99<br />

3.91<br />

4.14<br />

4.35<br />

4.27<br />

0 1 2 3 4 5<br />

Manufacturing<br />

Services<br />

How important would you say that <strong>agency</strong> <strong>work</strong>ers<br />

are to your organisation in terms of <strong>the</strong> following <br />

1 = not important<br />

5 = very important<br />

Source: REC / BERR Study 2008<br />

70


In <strong>the</strong> Ne<strong>the</strong>rlands <strong>the</strong> main reason to use<br />

<strong>agency</strong> <strong>work</strong>ers is also to meet peaks in demand<br />

Companies’ rationale to use<br />

temporary <strong>agency</strong> <strong>work</strong><br />

As an instrument for employers to<br />

adapt <strong>the</strong> size of <strong>the</strong>ir <strong>work</strong>force to<br />

fluctuations in product demand, <strong>agency</strong><br />

<strong>work</strong> is very sensitive to variations in<br />

<strong>the</strong> business cycle. In <strong>the</strong> Ne<strong>the</strong>rlands,<br />

companies use <strong>agency</strong> <strong>work</strong> for two<br />

primary reasons: to absorb peaks in<br />

demand and to cover for short-term<br />

staff leave. Agency <strong>work</strong> is considered<br />

<strong>the</strong> most appropriate solution to meet<br />

<strong>the</strong>se flexibility-related needs. It is<br />

also seen as an alternative for many<br />

HR-related functions traditionally<br />

carried out internally by companies,<br />

thus allowing <strong>the</strong>m to focus on <strong>the</strong>ir<br />

core activities.<br />

Reasons for hiring <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> Ne<strong>the</strong>rlands<br />

80%<br />

75%<br />

70%<br />

60%<br />

60%<br />

58%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

43%<br />

Flexibility related<br />

HR related<br />

0%<br />

Absorb demand peaks Cover short-term staff leave Pre-select potential hires Outsource HR<br />

Source: ABU 2005<br />

71


6. Agency <strong>work</strong> and <strong>the</strong> economic recovery<br />

• Agency <strong>work</strong> is a bellwe<strong>the</strong>r of <strong>the</strong> economic<br />

situation.<br />

• As a cyclical business - and a forecasting indicator<br />

- <strong>agency</strong> <strong>work</strong> has suffered from <strong>the</strong> economic<br />

crisis, but <strong>agency</strong> <strong>work</strong>ers have been first to be<br />

hired when <strong>the</strong> economy recovers.<br />

• Agency <strong>work</strong> limits <strong>the</strong> risk and duration of<br />

unemployment.<br />

• <strong>The</strong> private employment <strong>agency</strong> <strong>industry</strong> has<br />

rebounded sharply since <strong>the</strong> recession ended.<br />

73


Agency <strong>work</strong><br />

is a bellwe<strong>the</strong>r of <strong>the</strong> economic situation<br />

<strong>The</strong> use of <strong>agency</strong> <strong>work</strong> echoes <strong>the</strong><br />

behaviour of <strong>the</strong> general economy.<br />

Various studies have confirmed that<br />

<strong>the</strong>re is a direct correlation between<br />

variations in GDP and <strong>the</strong> level of use<br />

of <strong>agency</strong> <strong>work</strong>. In years of growth,<br />

<strong>the</strong> supply and demand of <strong>agency</strong><br />

<strong>work</strong>ers increase proportionally,<br />

and diminish when <strong>the</strong> economy<br />

falters. As a precise indicator of <strong>the</strong><br />

economic situation, <strong>the</strong> evolution<br />

of <strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> is<br />

<strong>the</strong>refore monitored as such, as<br />

private employment agencies are<br />

<strong>the</strong> first impacted by <strong>the</strong> crisis.<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

1.0%<br />

0.0%<br />

-1.0%<br />

-2.0%<br />

-3.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

1.0%<br />

0.0%<br />

-1.0%<br />

-2.0%<br />

-3.0%<br />

-5.0%<br />

6.0%<br />

Agency <strong>work</strong> growth* and GDP growth<br />

USA<br />

UK<br />

15.0%<br />

5.0%<br />

10.0%<br />

4.0%<br />

5.0%<br />

3.0%<br />

0.0%<br />

2.0%<br />

-5.0%<br />

1.0%<br />

0.0%<br />

-10.0%<br />

-1.0% 97 98 99 00 01 02 03 04 05 06 07 08 09<br />

-15.0%<br />

-2.0%<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

-20.0%<br />

-3.0%<br />

-25.0%<br />

-4.0%<br />

-30.0%<br />

-5.0%<br />

-35.0%<br />

-6.0%<br />

JP<br />

FR<br />

40.0%<br />

5.0%<br />

4.0%<br />

30.0%<br />

3.0%<br />

20.0%<br />

2.0%<br />

97 98 99 00 01 02 03 04 05 06 07 08 09 10.0%<br />

0.0%<br />

-10.0%<br />

-20.0%<br />

1.0%<br />

0.0%<br />

-1.0%<br />

97 98 99 00 01 02 03 04 05 06 07 08 09<br />

-2.0%<br />

-3.0%<br />

40.0%<br />

30.0%<br />

20.0%<br />

10.0%<br />

0.0%<br />

-10.0%<br />

-20.0%<br />

40.0%<br />

30.0%<br />

20.0%<br />

10.0%<br />

0.0%<br />

-10.0%<br />

-20.0%<br />

-30.0%<br />

GDP growth<br />

AW growth<br />

Sources : <strong>Ciett</strong> National Federations, IMF 2010<br />

*Evolution of turnover<br />

74


<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> in Europe<br />

returned to growth in 2010<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

<strong>The</strong> crisis affected <strong>the</strong> different<br />

European <strong>agency</strong> <strong>work</strong> markets at<br />

different times, depending on <strong>the</strong><br />

openness of <strong>the</strong>ir economies, <strong>the</strong><br />

maturity of <strong>the</strong>ir markets, and <strong>the</strong>ir<br />

dependence on certain segments of<br />

<strong>the</strong> economy. Accordingly, a country<br />

like Germany which wea<strong>the</strong>red <strong>the</strong><br />

crisis better than most, can be seen<br />

to have surpassed <strong>the</strong> previous levels<br />

of temporary <strong>agency</strong> <strong>work</strong> achieved<br />

before <strong>the</strong> beginning of <strong>the</strong> crisis.<br />

This can be partly attributed to<br />

Germany’s relatively low penetration<br />

rate. Indeed it highlights that<br />

Germany is taking advantage of this<br />

latent potential to begin economic<br />

growth again.<br />

35.0%<br />

25.0%<br />

15.0%<br />

5.0%<br />

-5.0%<br />

-15.0%<br />

-25.0%<br />

-35.0%<br />

-45.0%<br />

-55.0%<br />

Jan Feb Mar Apr May Jun Jul Aug Sep Oct<br />

08 08 08 08 08 08 08 08 08 08<br />

Evolution of number of hours <strong>work</strong>ed by <strong>agency</strong> <strong>work</strong>ers<br />

(year on year)<br />

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct<br />

08 08 09 09 09 09 09 09 09 09 09 09<br />

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct<br />

09 09 10 10 10 10 10 10 10 10 10 10<br />

France<br />

Belgium Ne<strong>the</strong>rlands Spain Italy* Germany**<br />

Source: <strong>Ciett</strong> National Federations 2010<br />

* number of remunerated <strong>work</strong>ing days - ** total number of temporary <strong>agency</strong> <strong>work</strong>ers<br />

75


Number of <strong>agency</strong> <strong>work</strong>ers in France<br />

began to increase again in Feb 2010<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> in France<br />

began to grow again in February<br />

2010, and <strong>the</strong> number of full<br />

time equivalent <strong>work</strong>ers has risen<br />

compared with <strong>the</strong> same period in<br />

2009 since that date. At <strong>the</strong> end of<br />

2009 unemployment in France had<br />

reached 9.8%. <strong>The</strong> number of <strong>agency</strong><br />

<strong>work</strong>ers in France fell by 26%, from<br />

604,000 in 2008 to 447,000 in 2009.<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> penetration rate is<br />

now 1.7%, down from 2.2% in 2008.<br />

25.0%<br />

20.0%<br />

15.0%<br />

10.0%<br />

Evolution in number of <strong>agency</strong> <strong>work</strong>ers in France *<br />

21.0%<br />

20.5%<br />

18.5%<br />

16.0%<br />

15.0%<br />

14.0%<br />

12.0%<br />

20.0%<br />

5.0%<br />

4.0%<br />

0.0%<br />

-0.5%<br />

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10<br />

-5.0%<br />

76<br />

Source: Prisme 2010<br />

* in FTEs / percentage change year on year


Number of <strong>agency</strong> <strong>work</strong>ers in Belgium<br />

have been rising since March 2010<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> in<br />

Belgium grew by 6.2% [in terms of<br />

<strong>the</strong> number of full time equivalent<br />

<strong>work</strong>ers employed] in March 2010<br />

compared to <strong>the</strong> same period in<br />

2009. This was <strong>the</strong> first growth in <strong>the</strong><br />

Belgian <strong>agency</strong> <strong>work</strong> <strong>industry</strong> since<br />

it entered <strong>the</strong> crisis. <strong>The</strong> growth has<br />

continued steadily since that point<br />

with most recent figures pointing to<br />

a rise of 19.1% in September 2010<br />

compared with September 2009.<br />

25.0%<br />

20.0%<br />

15.0%<br />

10.0%<br />

Evolution in number of <strong>agency</strong> <strong>work</strong>ers in Belgium *<br />

19.1%<br />

16.6%<br />

16.2%<br />

14.9%<br />

12.5%<br />

10.7%<br />

6.2%<br />

19.6%<br />

5.0%<br />

0.0%<br />

-1.4%<br />

-5.0%<br />

-2.7%<br />

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10<br />

Source: Federgon 2010<br />

* in FTEs / percentage change year on year<br />

77


<strong>The</strong> Italian <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

began growing again in February 2010<br />

<strong>The</strong> Italian <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

began to grow again in April 2010.<br />

It noted an increase of 3.6% in <strong>the</strong><br />

number of remunerated days by<br />

<strong>agency</strong> <strong>work</strong>ers compared with<br />

April 2009. Growth has continued<br />

steadily since that point. <strong>The</strong> impact<br />

of <strong>the</strong> crisis on <strong>the</strong> Italian labour<br />

market was relatively mild in 2008<br />

but grew in strength in 2009. <strong>The</strong><br />

Italian <strong>agency</strong> <strong>work</strong> market was<br />

also hit later than o<strong>the</strong>r European<br />

countries. This is partially due to<br />

regulatory changes introduced in<br />

2001, 2004 and 2006 that helped<br />

liberalise <strong>the</strong> market, <strong>the</strong>reby<br />

cushioning <strong>the</strong> initial impact of <strong>the</strong><br />

crisis on <strong>the</strong> <strong>industry</strong>.<br />

40.0%<br />

30.0%<br />

20.0%<br />

10.0%<br />

0.0%<br />

-10.0%<br />

-20.0%<br />

-30.0%<br />

Evolution in number of remunerated days by <strong>agency</strong> <strong>work</strong>ers in Italy<br />

28.3%<br />

27.2%<br />

25.8%<br />

21.5%<br />

13.3%<br />

3.6%<br />

-5.4%<br />

-15.1%<br />

-23.0%<br />

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10<br />

78<br />

Source: Ebitemp 2010<br />

*percentage change year on year


<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> returned to growth later<br />

in <strong>the</strong> Ne<strong>the</strong>rlands than in o<strong>the</strong>r European countries<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

<strong>The</strong> Agency <strong>work</strong> <strong>industry</strong> in <strong>the</strong><br />

Ne<strong>the</strong>rlands returned to growth<br />

in period 5 (May) of 2010 with a<br />

growth rate of 9% in hours <strong>work</strong>ed<br />

compared with <strong>the</strong> same period in<br />

2009. <strong>The</strong> Ne<strong>the</strong>rlands returned to<br />

growth later than o<strong>the</strong>r European<br />

countries and at a lower rate. It must<br />

be noted however that <strong>the</strong> crisis<br />

hit <strong>the</strong> Ne<strong>the</strong>rlands later and <strong>the</strong><br />

<strong>industry</strong> suffered less than in o<strong>the</strong>r<br />

countries (<strong>the</strong> <strong>industry</strong> decreased by<br />

13.5% in 2009).<br />

15.0%<br />

10.0%<br />

5.0%<br />

0.0%<br />

-5.0%<br />

Evolution in number of <strong>agency</strong> <strong>work</strong>ers in <strong>the</strong> Ne<strong>the</strong>rlands *<br />

10.0% 10.0%<br />

9.0%<br />

8.0%<br />

6.0%<br />

5.0%<br />

5.0%<br />

-1.0%<br />

-6.0%<br />

-10.0%<br />

-8.0%<br />

-15.0%<br />

-13.0%<br />

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<br />

Source ABU 2010<br />

* in FTEs / percentage change year on year<br />

79


<strong>The</strong> Spanish <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

returns to growth strongly, following crisis<br />

In 2010, <strong>the</strong> Spanish <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> began to grow again in<br />

February 2010 and continued to<br />

do so throughout <strong>the</strong> year. In 2009,<br />

Spain was heavily hit by <strong>the</strong> global<br />

economic crisis. As one of <strong>the</strong><br />

fastest growing economies in recent<br />

years, its impact was all <strong>the</strong> more<br />

significant. Unemployment climbed<br />

to over 19% in December 2009.<br />

30.0%<br />

25.0%<br />

20.0%<br />

15.0%<br />

Evolution in number of <strong>agency</strong> <strong>work</strong>ers in Spain *<br />

24.7%<br />

14.3%<br />

13.3%<br />

12.2%<br />

21.2%<br />

10.0%<br />

8.7%<br />

7.3%<br />

5.0%<br />

0.0%<br />

-0.2%<br />

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10<br />

-5.0%<br />

80<br />

Source: AGETT 2010<br />

* in FTEs / percentage change year on year


<strong>The</strong> number of <strong>agency</strong> <strong>work</strong>ers in Germany<br />

returned to pre-crisis levels in 2010<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

Germany’s <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

began to grow again as early as<br />

January 2010 and in September<br />

2010, <strong>the</strong> German <strong>agency</strong> <strong>work</strong><br />

<strong>industry</strong> returned to pre-crisis levels<br />

of employment. This can be partly<br />

attributed to Germany’s relatively<br />

young and still immature market<br />

in comparison with o<strong>the</strong>r major<br />

economies.<br />

40.0%<br />

35.0%<br />

30.0%<br />

25.0%<br />

20.0%<br />

Evolution in number of <strong>agency</strong> <strong>work</strong>ers in Germany*<br />

35.5%<br />

34.6%<br />

34.2%<br />

32.0%<br />

23.6%<br />

38.0%<br />

33.7%<br />

15.0%<br />

11.0%<br />

10.0%<br />

5.0%<br />

2.9%<br />

0.0%<br />

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 sep 10<br />

Source BZA 2010<br />

* Total number of <strong>work</strong>ers/ percentage change year on year<br />

81


<strong>The</strong> American <strong>agency</strong> <strong>work</strong> market<br />

began to recover earlier than <strong>the</strong> <strong>industry</strong> in Europe<br />

American economic activity<br />

measured by employment peaked<br />

in December 2007. Since <strong>the</strong>n, it<br />

has lost jobs until mid 2009 when<br />

it began to grow again. But even<br />

though <strong>the</strong> decline in <strong>agency</strong> <strong>work</strong><br />

occurred later, it rapidly outpaced<br />

that of <strong>the</strong> American <strong>work</strong>force at<br />

large, as it played its role of buffer,<br />

cushioning <strong>the</strong> impact on permanent<br />

staff. <strong>The</strong> strong recovery of <strong>the</strong><br />

<strong>industry</strong> points that in <strong>the</strong> recovery,<br />

<strong>agency</strong> <strong>work</strong>ers are among <strong>the</strong> first to<br />

be hired.<br />

15.0%<br />

10.0%<br />

5.0%<br />

0.0%<br />

-5.0%<br />

-10.0%<br />

-15.0%<br />

US staffing employment index since 2006<br />

120<br />

110<br />

100<br />

90<br />

80<br />

70<br />

-20.0%<br />

60<br />

19/06/2006<br />

19/08/2006<br />

19/10/2006<br />

19/12/2006<br />

19/02/2007<br />

19/04/2007<br />

19/06/2007<br />

19/08/2007<br />

19/10/2007<br />

19/12/2007<br />

19/02/2008<br />

19/04/2008<br />

19/06/2008<br />

19/08/2008<br />

19/10/2008<br />

19/12/2008<br />

19/02/2009<br />

19/04/2009<br />

19/06/2009<br />

19/08/2009<br />

19/10/2009<br />

19/12/2009<br />

19/02/2010<br />

19/04/2010<br />

19/06/2010<br />

19/08/2010<br />

19/10/2010<br />

Week-to-Week Change ASA Staffing Index (Set at 100 on 6/12/2006)<br />

Source: American Staffing Association 2010<br />

82


Agency <strong>work</strong>ers<br />

are <strong>the</strong> first hired when business recovers<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> can<br />

quickly call upon a large pool of<br />

<strong>work</strong>ers, and provide organisations<br />

with appropriate <strong>work</strong>ers to better<br />

manage competitive pressures. As<br />

a result, <strong>the</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong><br />

is among <strong>the</strong> first to create jobs as<br />

soon as <strong>the</strong> economy recovers, as<br />

companies first hire <strong>agency</strong> <strong>work</strong>ers<br />

to meet an increase in orders,<br />

before recruiting permanent staff<br />

when <strong>the</strong> situation stabilises. As Pat<br />

McFadden - Former UK Minister of<br />

State for Employment Relations -<br />

said: “Agency <strong>work</strong> is a valued<br />

route into employment and plays<br />

a vital role in enabling employers<br />

to respond flexibly to changing<br />

business needs - and are likely to be<br />

particularly important in enabling<br />

employers and employees to take<br />

full advantage of <strong>the</strong> upturn.”<br />

When business recovers, which <strong>work</strong>ers do you typically hire first <br />

Don’t<br />

distinguish<br />

26%<br />

Permanent<br />

<strong>work</strong>ers<br />

23%<br />

Contingent<br />

<strong>work</strong>ers<br />

50%<br />

based on a survey of buyers from 171 large [1000+ employee] companies<br />

Source: Staffing Industry Analysts 2009 - www.staffing<strong>industry</strong>.com<br />

83


Agency <strong>work</strong> typically rebounds sharply<br />

after recessions<br />

Agency <strong>work</strong><br />

and <strong>the</strong> economic recovery<br />

<strong>The</strong> <strong>agency</strong> <strong>work</strong> <strong>industry</strong> not<br />

only creates jobs that would<br />

not o<strong>the</strong>rwise exist, but it also<br />

accelerates <strong>the</strong> number of jobs<br />

created once <strong>the</strong> economy recovers.<br />

Historically, PrEAs are among <strong>the</strong><br />

first to create jobs in economic<br />

upswings, enjoying double-digit<br />

growth rates when <strong>the</strong> economy<br />

emerges from a recession. As<br />

business picks up, companies<br />

first hire temporary help, before<br />

recruiting permanent staff once<br />

business has stabilised. Since 1990,<br />

<strong>the</strong> growth rate of <strong>agency</strong> <strong>work</strong> sales<br />

revenues in <strong>the</strong> USA has exceeded<br />

GDP growth by more than 2.5 times.<br />

35.0%<br />

30.0%<br />

25.0%<br />

20.0%<br />

15.0%<br />

10.0%<br />

5.0%<br />

0.0%<br />

-5.0%<br />

-10.0%<br />

1978<br />

1979<br />

1980<br />

1981<br />

1982<br />

US staffing typically rebounds sharply after recessions<br />

1983<br />

1984<br />

1985<br />

1986<br />

1987<br />

1998<br />

1989<br />

1990<br />

1991<br />

1992<br />

1993<br />

1994<br />

1995<br />

1996<br />

1997<br />

1998<br />

1999<br />

2000<br />

2001<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

-15.0%<br />

Temporary Help ADE<br />

Real GDP % Change<br />

Source: American Staffing Association 2009<br />

84


About <strong>Ciett</strong><br />

As <strong>the</strong> International Confederation of<br />

Private Employment Agencies, <strong>Ciett</strong> is<br />

<strong>the</strong> authoritative voice representing <strong>the</strong><br />

interests of private employment <strong>agency</strong><br />

<strong>industry</strong> across <strong>the</strong> <strong>world</strong>.<br />

Founded in 1967, <strong>Ciett</strong> consists of 44<br />

national federations of private employment<br />

agencies and seven of <strong>the</strong> largest staffing<br />

companies <strong>world</strong>wide: Adecco, GI Group,<br />

Hudson, Kelly Services, Manpower,<br />

Randstad, and USG People.<br />

Its main objective is to help its members<br />

conduct <strong>the</strong>ir businesses in a legal and<br />

regulatory environment that is positive and<br />

supportive.<br />

<strong>Ciett</strong> is divided into five regional<br />

organisations: Africa, Asia [Asia<strong>Ciett</strong>], North<br />

America, South America [CLETT&A], and<br />

Europe [Eurociett].<br />

86


Africa<br />

Morocco | FNETT<br />

South Africa | APSO<br />

Asia/Pacific<br />

Australia & New<br />

Zealand| RCSA<br />

China | CAFST<br />

Japan | JASSA<br />

South Korea | KOSA<br />

North America<br />

Canada | ACSESS<br />

Mexico | AMECH<br />

USA | ASA<br />

South America<br />

Argentina | FAETT<br />

Brazil | SINDEPRESTEM<br />

Chile | AGEST<br />

Colombia | ACOSET<br />

Perú | AETT Perú<br />

Europe<br />

Austria | VZA<br />

Belgium | FEDERGON<br />

Bulgaria | BG Staffing<br />

Czech Republic | APPS<br />

Denmark | Dansk Erhverv<br />

Estonia | ESAA<br />

Finland | HPL<br />

France | PRISME<br />

Germany | BZA<br />

Greece | ENEPASE<br />

Hungary | SZTMSZ<br />

Ireland | NRF<br />

Italy | ASSOLAVORO<br />

Latvia | LASA<br />

Lithuania | TEAA<br />

Luxembourg | ULEDI<br />

Macedonia | NFTWAM<br />

Ne<strong>the</strong>rlands | ABU<br />

Norway | NHO Service<br />

Poland | Polskie Forum HR<br />

Portugal | APESPE<br />

Romania | ARAMT<br />

Slovakia | APAS<br />

Slovenia | ZAZ<br />

Spain | AGETT & AETT<br />

Sweden |<br />

Bemanningsförtagen<br />

Switzerland | Swiss<br />

Staffing<br />

Turkey | OIBD<br />

UK | REC


Tour & Taxis building<br />

Avenue du Port 86c - Box 302<br />

B 1000 - Brussels<br />

www.ciett.org<br />

www.inextremis.be

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