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Germany – Staffing market shrinks

13 March 2013

While top recruiter Adecco today reported that revenue in Germany fell in the three months to December, new research confirms that the staffing market in the country is losing some of its momentum as activity levels continued to decline towards the end of the year. This is according to data provided by the German federation of employment agencies.

The number of temporary agency workers in Germany – an important indicator of how recruitment firms are doing – dropped in December for the fifth month in a row. Staffing companies employed around 800,000 agency workers in the month, a decline of -5.4% on November.

A year ago in December, the German staffing market posted healthier figures with 905,000 agency workers registered in the industry. The number of agency staff therefore fell at an annual rate of nearly -12%.

The data also shows that nearly half (47%) of staffing firms expect to increase employment levels in the first half of 2013. But 39% anticipate cutting levels of agency workers in the six months to June.

Recruiters on average reduced the number of agency workers by -15.2% in December when compared to the same time a year ago. The only state to increase the amount of temporary staff was Bremen, in the north of Germany. Regions in the southeast of the country meanwhile posted the sharpest reduction in agency workers with numbers dropping by up to -26% year-on-year.  

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