Temporary staffing has become an integral part of the German labour market and has been gradually deregulated from 1985 onwards. Especially in the last decade the country has developed one of the most attractive and buoyant staffing industries in Europe although it remains more fragmented than its French or Dutch neighbours.
As Europe’s largest economy, Germany has a strong focus on manufacturing and industries with the metal and electrical sector being a major client to temporary employment agencies. Professional and skilled labour has also grown in demand, making the recruitment market a diverse one. Influential collective agreements and the temporary employment act shape the legal framework of the German staffing market, which is the fifth-largest in the world based on revenue.
The German jobs market proved to be one of the most resilient during the recent recession. Employment is high and unemployment is comparatively low, but an acute skills shortage is posing a threat to companies in the country.