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Staffing firms operating in Germany reported healthy growth figures last year with the country being one of the few in Europe where recruiters could still drive their revenues. New research now shows that the resilient German labour market is showing signs of a slowdown, not least in the staffing industry. But the decline may not be long-lasting.
The number of temporary agency workers in Germany fell by nearly -15% to 804,000 in November 2012 from 944,000 a year ago. Month-on-month, this figure dropped by -2.3%, according to the latest data by the Institute of Economic Research (IW). This previously found evidence of a fluctuating staffing market in Germany.
“We are interpreting the reduction in the number of temporary agency workers in line with the economic situation and expect a further decline for December,” said Volker Enkerts, president of the association of temporary staffing firms (BAP).
He added that the recent decrease in agency workers can also be explained by client companies taking on temporary staff as direct hires. Looking ahead, he believes that the number of agency workers will grow early this year if the German economy, the largest in Europe, will pick up.
The German Federal Bank said in a new report yesterday that the country’s economy is already seeing signs of a recovery in the first quarter of 2013 with business confidence growing.