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Europe – Growth in agency work for October

21 October 2016

The average number of hours worked by agency workers across Europe in October grew 2.8% year-on-year compared with the same period last year, according to figures from the World Employment Confederation Europe (previously known as Eurociett).

The figures showed that Denmark had the highest growth at 10.3% while Switzerland has shown a return to growth at 3.5% and Norway has stabilised. Italy continues to show a year-on-year decline.

Data for Germany is not included due to changes in the collection process at the federal employment agency. Germany will not appear in the AWBI until January 2017. However, data collected by IW Köln (Cologne Institute for Economic Research) and BAP shows that the number of agency workers rose by 5% from January to May 2016.

Agency work sales revenues for the latest period continue to reveal growth across all markets. Poland, Finland and Sweden record double-digit year on year growth at 17%, 14% and 10% respectively. The Netherlands, France and Belgium showed 8%, 7.5% and 7.1% year on year, respectively.

Austria has shown consistent positive growth versus the previous year for more than six months now. It is also recording a growth in hours worked for the third consecutive quarter.

The temporary agency work industry in Belgium grew by 4.96% (compared with 6.55% in July year on year). This figure is the result of a growth of 5.44% in the blue-collar segment and growth of 4.34% in the white collar segment.

In France in August, the number of temps at work rose by 3.1% after 4.6% in July. While August is usually disturbed by holidays, this trend should be interpreted carefully. In this detail, growth in North (Picardie: +6.7% and Nord-Pas-de-Calais: +6.3%) and East (Franche Cornté: +10.8%, Alsace: +7.8%, Champagne Ardenne: +7.3%) remained particularly dynamic.

Finland has changed the way in which it collects its data on agency hours worked this year hence the World Employment Confederation will not be able to compare year-on-year data until January 2017. However, August figures on evolution of turnover show strong growth.

In period 8 (weeks 29 – 32) in the Netherlands, the total amount of hours increased 7% and turnover grew 8%, in comparison to the same period last year. This period had an equal amount of workable days compared to the same period last year, so no correction was applied. The administration sector increased 10% in hours and turnover grew 8% in comparison to the same period in 2015. Hours in the industrial sector increased 7% and turnover increased 9% compared to the same period last year. Furthermore, the amount of worked hours in the technical sector decreased 2% and turnover increased 3%.

The Norwegian agency work market has stabilised following decline for 13 consecutive quarters. The invoiced work hours in Q2 were at the same level as the year before and the sales revenues grew by 2.3%. The drop in oil prices has affected the market for the last few years as a lot of people in oil related industries lost their jobs and there has been a rise in unemployment in certain parts of the country. It seems that this has now reached the bottom and there is also growth in the areas of the country less dependent on the oil industry. For some export industries and for tourism, low currency value has had a positive effect.

Temporary agency work grew 3.5% year-on-year in August 2016 in Switzerland. However, since the start of the year the evolution of the sector has shown negative growth, contracting 0.5%. Over the past 12 months the contraction is even greater at 1.5%.

In the UK, agencies’ billing from the employment of temporary/contract staff continued to rise in August. Moreover, the rate of growth accelerated to a three-month high. Higher temp billings were frequently attributed to rising client activity levels. Growth of short-term staff billings was broad-based by region, with the North posting the fastest rise. 

On 21 September 2016, Eurociett, the European Confederation of Private Employment Services, was rebranded to "World Employment Confederation-Europe".