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Europe – Growth in agency work slows during May

01 September 2014

The number of hours worked by agency workers across Europe increased by +0.8% in May 2014, compared with the same month last year, according to the latest Agency Work Business Indicator from Eurociett, the European Confederation of Private Employment Agencies.

This compares with growth of +4.5% in both March and April 2014.

Figures from Germany for the first half of 2014 had to be readjusted, which negatively affected the European average, due to the size of the German market.

This decline from the German market was partially offset by positive figures from Belgium, Denmark, Italy, and the Netherlands.

May proved to be a slow month in most countries, however improvements were noted in June, particularly in Belgium, the Netherlands, and Italy. 

Revenue growth across Europe continued to reflect a cautious upward trend. Belgium reported the strongest growth, with +13.4% in July 2014, the second consecutive month of strong growth following a dip in May. Both the Netherlands and Finland also experienced the same dip in revenue during May 2014, but both seem to have also recovered.

Norway was the only country to report a deterioration in revenue, falling from no growth in Q1 2014 compared with the same quarter last year, to a decline of -0.9% in Q2, year-on-year.

Belgium - In July 2014, the number of hours worked by temporary agency workers increased by +11.95%, a result of a rise of +13.4% in the blue-collar segment and +10.2% in the white collar segment.

France - In May 2014, temporary work turnover increased by +1.5%, compared with last year, while the number of hours worked rose by +1%. In June 2014, the number of temporary workers fell by -2.8% and decreased by -3.4% during the first six months of the year.

The Netherlands - In period 7 (weeks 25 to 28) the number of hours worked by temporary workers increased by +6% with turnover rising by +6%, compared with the same period last year.

Norway - The Norwegian staffing industry experienced a decline of ‐4.8% in the number of hours worked by temporary workers during the first quarter of 2014, compared with the same period last year. Turnover remained at the same level as the year before, highlighting a slight price growth in the period.

The penetration rate of the agency work industry stays stable on about 1% even though the market is declining. This shows that the development in the numbers of people working through the industry is proportional with the total Norwegian workforce. The agency work industry is closely linked to the total economic development.  A decline signals that the Norwegian economy is slowing down and that there is a risk of unemployment growth.

Sweden - The three crucial areas where the staffing industry has become a central player for the Swedish economy are industry, logistics, and healthcare. There are currently 20,000 engineers recruited by staffing companies each year. For the third successive quarter, the industry as a whole reported growth, with the first quarter of 2014 producing growth of +9%, compared with the same quarter last year.

UK – July reported fastest rise in temp billings in 2014 so far. Agencies’ billings from the employment of temporary and contract staff continued to increase. The rate of growth was substantial, having quickened to a seven‐month high. Panellists attributed higher revenues from short‐term placements to rising business requirements at clients.