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Staffing firms in Spain will see a -4% fall in revenue this year to €2.2 billion, according to a new report by research firm DKB. According to their analysis, staffing revenue in Spain last year increased by +3.6%, but firms have struggled with difficult trading conditions and a weakening labour market in 2012 due to economic uncertainty.
DBK said the deterioration was due to a general decline seen in recruitment services and “intense” competitive pricing. The report also points out that the actual number of recruitment agencies operating in the country has declined since 2009, signalling a further decline of the market.
Most staffing companies can be found in Madrid and Barcelona where around 30% of licenced staffing specialists operate. This is followed by Andalusia and Valencia.
The report emphasises that the Spanish staffing industry has seen important trends over the years with smaller companies shutting down and larger groups acquiring local specialists. It said the staffing industry was a “key” sector in the Spanish labour market, but short-term developments are likely to mirror the sluggish economy with productivity levels expected to fall.
Staffing Industry Analysts is less optimistic about the Spanish staffing market, having recently downgraded the 2012 growth rate of the industry from +4% to -10%. This follows a slowdown seen in many European markets, notably France and the Netherlands.