Recruiters have for months reported a slowdown in market conditions across the Benelux countries, with the Netherlands and Belgium seeing falling demand for temporary workers. New data now also suggests a market decline in Luxembourg.

According to research by the country’s federation of temporary employment agencies, Fedil Employment Services (FES), figures for January show that the staffing market contracted by -5% in the month regarding hours worked in the staffing industry.

This comes after the number of temporary workers in the country fell by -11.5% in the third quarter of 2012, when compared to the same time a year ago. Market declines have been noted across the key sectors industry and construction which have been harshly hit by the slowdown. Sectors that have been less affected include the trade and hospitality sector.  

The organisation said that many of temporary workers in the country are crossing the border from France and are often unskilled.

Marc Kieffer from FES earlier this year warned that the beginning of 2013 was worse than 2012 with no recovery in sight so far. FES was formerly known as Uledi and represents around 80% of staffing companies based in Luxembourg.