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Private employment agencies in Germany are gaining ground with more companies relying on staffing companies to meet their recruitment needs, according to senior economist Holger Schäfer from the Cologne Institute for Economic Research.
Speaking at a lecture in Berlin this week, he said that employers are now using more staffing companies with this figure having grown from 5% in 2005 to 14% in 2011. And further growth is to be expected, Mr Schäfer said.
He pointed out that staffing companies boast a good success rate of 40% when finding and recruiting staff. This is above average compared to other recruitment tools with private employment firms beating public employment agencies, he added.
He also warned that the skills shortage in Germany is getting more acute and although recruiters are increasingly making use of talent from abroad, he said that migration of workers was currently overrated. The local labour market remained “decisive” when recruiting workers, he said.
But German MP Beate Müller-Gemmeke from the Green Party, who also attended the event organised by the federation of private employment agencies, disagreed. She said that migration was inevitable to meet the needs of the labour market. “The Euro crisis will have further impacts on this. We have to increase our potential in Germany because even a crisis-ridden country like Spain is in need of skilled workers,” she said.