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Germany — Temporary employment could quadruple by 2020

05 February 2010

The inflexibility of German employment legislation has caused many job losses in the temporary employment sector during the economic crisis because it was much easier to sack temporary employees than permanent employees. 300,000 temporary jobs were lost within one year.

However, the same inflexible employment legislation is now expected to cause an enormous rise in temporary employment once the economy picks up because employers value the flexibility of temporary employment.

Michael Bruhns of market research firm Interconnection Consulting told German weekly Focus "the market is going to recover bit-by-bit. By 2012 or 2013 at the latest, there will be one million temporary employees in Germany. Temporary employment will be stronger than ever."
There are already signs that especially large firms are beginning to hire temporary employees the moment the economy picks up slightly. Car manufacturer Daimler has hired 300 new temporary employees in January in order to cover peaks in manufacturing during the first quarter of 2010.

The Association of Temporary Employers (BZA) said "we believe that when companies get new contracts they will hire temporary employees rather than permanent ones."

Sven Kilian, Managing Director of staffing agency Time Partner is even more optimistic than his industry colleagues, he said "by 2020 the number of temporary employees in Germany could easily reach 3 million." This would be four times the number of 2008 when temporary employment reached its peak with 823,000 temporary employees in the country.
Year    Number of temporary employees in Germany 2002 — 2012 (forecast)
2002    318,465
2003    330,219
2004    385,256
2005    443,949
2006    579,771
2007    715,056
2008    760,500 (July 823,000)
2009    556,500 (May 517,000)
2010    700,000
2011    830,000
2012    960,000
Sources: IC, BA, BZA



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