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Unemployment in Spain has soared in recent months with over 6 million people now out of work and job market data looking bleak. This slowdown has also affected staffing companies in the country which have continuously reported difficult market conditions and high levels of uncertainty.
The latest data by the Ministry of Employment and Security Social now shows that staffing companies signed fewer contracts in 2012 than in previous years. Overall, 2,023,195 assignment contracts were signed last year, a decrease of nearly -2% from 2011.
The data indicates a break with growth trends seen since 2010 when staffing firms posted a +16% rise in assignments signed. Even last year as economic and labour market conditions worsened, the industry still recorded a +5.4% rise in the number of contracts signed.
But trading conditions may have improved in the New Year with staffing giant Randstad last week reporting better performance in Spain. In February, the firm still reported a -12% fall in fourth-quarter revenue while the decline eased in Spain during the first three months of 2013. Revenue in the country was down only -1%, a significant improvement from the previous quarter due to higher demand in the manufacturing sector.
However, due to negative economic growth forecasts in 2013, Staffing Industry Analysts expects the Spanish staffing market to contract this year. Industry revenue decline is projected to drop by over 10%, according to the latest market 2013 forecasts.