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More than a quarter (26%) of staffing agencies across Sweden expect demand for agency workers to fall during Q3 2014, according to the latest Staffing Survey from the Swedish Staffing Association (Bemanningsföretagen).
However, four-out-of-10 agencies expect that demand will remain constant, while a third (34%) expect that demand will increase.
Just over a quarter (27%) of agencies expect that they will have to cut the number of agency workers they employ, while 29% expect to recruit more staff. Less than half (44%) expect that staffing levels will remain unchanged during Q3.
Compared with the Staffing Survey outlook for the second quarter, there has been a marked decline in optimism across the industry. The majority (80%) of staffing agencies had expected demand to increase during the second quarter, while 19% expected demand to remain unchanged.
However, only 45% of staffing agencies reported an increase in demand during the second quarter. This represents a slight increase compared with Q1 2014, but was significantly below expectations.
During the second quarter, while 65% of companies had expected to recruit additional staff, only 37% were able to do so. Only 1% of companies predicted that they would cut staff during Q2, but a quarter (25%) of companies were forced to reduce their staffing levels during the period.
Low staffing demand continues to negatively impact recovery, with 62% of companies reporting this as their main barrier to growth, up from 47% in Q1.
The Swedish economy began to recover in the third quarter of last year, but Almega (the trade organisation for the Swedish services sector) expects recovery to be slow.
Efterfrågan, utfall – Demand, outcome
Efterfrågan, fӧrväntningar – Demand, expectations
Volym på inneliggande uppdrag (nulägesbedӧmning) – Volume of assignments (baseline)