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A new study shows that the staffing industry in Germany has helped to create thousands of new jobs although it is claimed that the success story comes at a price. According to a survey published on Thursday, the staffing industry created 100,000 jobs in the “boom years” of 2006 and 2010. This is when the number of agency workers rose dramatically by 200,000.
The German Institute of Employment Research (IAB) looked at a claim often made by critics, namely that temporary staffing displaces “regular” jobs . This includes any employment relationships outside temporary agency work, especially permanent jobs.
The findings showed mixed results. Although it is true that the staffing industry boosted job growth in 2006 and 2010, at the same time the sector displaced 100,000 regular jobs. In short, temporary workers replaced permanent workers.
“As supporters of temporary staffing have hoped, the use of temporary agency employment is linked to job growth,” the study notes. “But the rise in employment comes at a cost because temporary staffing also displaces regular employment.”
The study has been criticised by representatives of staffing companies as being too scientific. However, the authors of the research report point out that it is not always a simple case of agency workers replacing regular workers and therefore displacing permanent jobs. It remains difficult to judge when temporary workers substitute a permanent employee as boundaries are blurred, the researchers said.