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France – Demand for temporary staff deteriorates

01 March 2013

The French staffing market continued to deteriorate in January with major sectors unable to escape falling demand for temporary staff. The staffing industry contracted by -16.2% in the month, according to the latest employment barometer by the French association of employment agencies (PRISME).

This showed a general decline for temporary employment services, especially in the construction (-23%) and the industrial sector (-19.1%). The transport industry noted a reduction of -4.4% in January.

In the month, the number of temporary white collar workers fell by -11.9%. Unskilled workers saw a sharper rate of decline at -16.1%. Professionals and managers dropped by -16.5% while the number of skilled workers fell by -17.9%.

Eastern France recorded notable falls in temporary employment, declining sharply across Alsace (-33.5%), Franche-Comté (-29.0%), and Lorraine (-26.5%).

Multinational staffing firms such as ManpowerGroup and Kelly Services recently posted a drop in French revenues as demand for temporary workers fell during the fourth quarter 2012. Market conditions in Europe are not expected to improve much this year, according to the latest market forecasts by Staffing Industry Analysts. 

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