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Belgium – Temporary work sector shows growth for third straight year

08 May 2017

The temporary work sector in Belgium in 2016 showed an annual increase of 9.3%, its third consecutive year of growth, according to figures from the Belgian federation of staffing agencies.

Federgon states that the positive economic environment in 2016 meant that there were more jobs available and that employers were engaging more. However, companies remained cautious, and the need for flexibility was evident, according to Federgon.

In 2016, 652,338 people entered the labour market through temporary work, which corresponds to 109,399 full-time equivalents, a record number.

"The temporary employment sector is demonstrating its role again as an instrument that facilitates access to the labour market,” Herwig Muyldermans, CEO Federgon, said. "The number of students who worked through the interim is rising (232,919). But it is the proportion of more experienced candidates that is increasing significantly.”

Muyldermans states that the number of workers aged 45 or more who entered temporary work increased by 16.7% in 2016, on the year. The share of temporary workers aged 50 and over increased by 17.2%, and the share of 55+ recorded an increase of 21.2%, year-on-year.

Meanwhile, the Recruitment, Search & Selection sector, and the interim management sector show a similar positive trend with over 10% growth in 2016. The securities services industry saw the number of hours worked increase of 2.9%.

Muyldermans also stated, “Everyone agrees that turmoil in the labour market is rising again. Digitisation, automation and a disruptive economy will increase volatility in the labour market. In addition, retirements among the baby boom generation provoke additional tension in this market. The integration of immigrants and refugees also remains a very difficult challenge. HR service providers have a crucial role to play in managing the inflows and outflows on the labour market and the retention of staff, and to ensure that the transitions in the labor market is going well.”

"For us to fully assume our responsibilities, it is important that decisions are taken quickly in a number of cases" Muyldermans said. "Thus, it is essential that easing the use of temporary work in public services continues. Important steps have already been taken, but the issue must be finalised as soon as possible.”

A level playing field, or equal treatment for all providers, is another priority of the federation, Muyldermans stated.

“As part of learning throughout life, it is clear that everyone should have access to training. But it is also important that all training providers can apply the same VAT rate, in order to be competitive in a very competitive market. This is not the case now, and we must find an urgent solution to this problem,” Muyldermans said.