Swiss staffing service providers concluded the second quarter of 2023 with a 5.6% decrease in temporary staffing hours compared to the previous year, according to research from Swiss Staffing, the Swiss Federation of Staffing Companies. 

The research showed that while temporary hours were down, revenue in the permanent market increased by 7.9% in Q2 when compared to the same period a year ago.

Swiss Staffing noted that,when temporary positions are down and permanent positions are up, it is a typical sign of full employment.

“While temporary workers are being permanently hired by their contracting companies more quickly, it is harder to recruit new temporary workers,” it stated. “In the permanent position market, staffing service providers are increasingly acting as consultants and head-hunters, creating growth and almost leading to the record level seen in 2019.”

Despite the decrease in temporary staffing hours, the research noted that the strained labour market is bringing staffing service providers many requests from companies on the search for workers.

Sarah Pfander, CEO of ATEC Personal AG, a staffing service provider in the Fribourg area of Switzerland's Mittelland region, said, "Our number of temporary workers is far below that in previous years. The enquiries would be there but there is a lack of people searching for short-term positions."

The longer time periods compared to those in the temporary staffing sector are a decisive factor in the permanent staffing market's success, the research noted. On average, the temporary staffing market is down compared to the record year of 2022. In this situation, the permanent staffing sector is one of the key pillars for staffing service providers.

Balz M. Villiger, Vice President, country manager Switzerland & group leader Benelux at Kelly Services, said, "The shortage of skilled workers is still the topic concerning companies. There is a lot of movement in the market.”

Marius Osterfeld, head of economics and politics at Swiss Staffing, said there are two potential medium-term scenarios. “Either the wind changes direction and the economy declines or full employment remains constant because of a robust economic and demographic change."

“In the first scenario, the declining economy will negatively impact the sector,” Osterfeld said. “At the same time, the staffing service providers' integration role will become more important for the labour market. Staffing service providers help new people searching for a job to get back into work quickly and dampen the downturn.”

According to Osterfeld, if full employment continues, the working population's need for flexibility and change will increase in the medium term. This will benefit both the temporary and the permanent staffing sectors.