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New research carried out by the Institute for Labour Market Research (IAB), reveals that 25% of temporary employees in Germany were unemployed for at least 50% of the time during the two-year period before they took on their temporary job.
During the two-year period after they left their temporary job, only 17% were unemployed for the same amount of time. 7% of temporary employees manage to get taken on as permanent employees by their final temporary employer.
IAB Director, Joachim Möller, said "temporary employment may not be a broad bridge into [permanent] employment but it is at least a gangplank."
Despite the evidence from IAB, Annelie Buntenbach from the German Federation of Trade Unions, does not believe that temporary employment leads to permanent employment. She thinks that the 20% to 25% lower pay for temporary employees compared to their permanent counterparts is a serious disincentive for employers to take temporary employees on permanently, German daily Sächsische Zeitung reports
Volker Enkerts of the German Association for Temporary Employment (BZA), criticises the approach of the IAB research altogether. He said "we welcome the IAB research in general and we don't doubt the figures but the success of temporary employment should not be measured by how many temporary employees are taken on as permanent employees. Temporary employment is a job in itself and not necessarily a bridge to permanent employment."
To read the IAB report in German language please click here