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Germany – Temp to perm conversion shows significant growth in 2011

20 March 2012

Around 300,000 temporary workers in Germany were hired as permanent personnel by companies in 2011 according to research from the Cologne Institute for Economic Research on behalf of the BAP, the German association of employment agencies. There were around 940,000 temporary workers registered in the country last year.

In September alone, about 50,000 temporary workers were hired as permanent staff. Based on these figures, the BAP now estimates that in the entire year, 300,000 temps were hired as full-time employees as the average number of temporary workers in Germany also went up to almost 900,000.

A spokesperson for BAP said to Staffing Industry Analysts that demand for temporary employment in Germany was currently “excellent.” He said that the temp to perm conversion rate also emphasises the fact that clients had gained trust in the order volume and are keen to expand their permanent staff.   

Meanwhile BAP president, Volker Enkerts commented “The numbers show a strong integration achievement in our industry for the labour market: temporary workers have been taken over extensively, at the same time we have recruited new employees [out of which up to] 65% were unemployed. Although we do not want to measure ourselves according to the temp to perm conversion rate – after all we are an independent industry with regular working conditions – the number for 2011 convince economically.”

He also said that the trade unions in the country, which are often against temporary employment and have embarked on new collective bargaining rounds today with the aim to reduce the amount of temporary staff in companies, provided wrong figures for the temp to perm conversion rate. Mr Enkerts said that it was “a myth” that temporary workers were not hired as permanent staff, a prejudice that contributes to the negative image trade unions generally have of the temporary staffing industry. 

He also added that the BAP had almost struggled to keep up with the high demand of temporary workers as the German economy continues to boom and more and more companies enquire about temporary workers. “Currently, we estimate that there are around 50,000 job vacancies in our industry, out of which 30,000 are not filled – and this is despite us paying significantly above the [agreed] tariff. The labour market is deserted in the skilled sector. Therefore temporary employment is a reflection of the German labour market,” Mr Enkerts said. 


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