Ciett EC Report 2013 Final Web

2013 Economic Report / Ciett / 1

WORLDaround theWORK INDUSTRY AGENCYThe

Economic Report 2013 Edition(based on figures available in 2011)

CiettTour & Taxis buildingAvenue du Port 86c - Box 302B 1000 - [email protected]


TABLE OF CONTENTS

Introduction 4

The key facts and figures 7

The agency work industry in 2012: latest trends 9

The players 17

Agency work in numbers 23

The profile of agency workers 33

Agency work creates jobs and aids labour market transitions 49

About Ciett 56

Ciett National Federation Members 57

About The Way to Work 58

4 / Ciett / 2013 Economic Report

In 2011, the global agency work industry continued in its recovery from the economic downturn that started in the USA in 2007, and quickly spread to the rest of the world. The return to growth was wit-nessed in most countries which report activity of private employment services, however growth was stronger in some countries than in others and available information from 2012 suggests a downward trend for the industry in Europe, in line with changes witnessed in GDP.

46 million people worked as agency workers in 2011, equivalent to 12.4 million full time jobs1. In parallel, global total annual sales revenues amounted to 259 billion2. This report provides infor-mation on the latest industry trends witnessed in 2012 as well as a more comprehensive picture of the agency work industry in 2011 around the world.

Where most markets witnessed growth throughout 2011, the industry in Europe began to decline in the first quarter of 2012 and continued to decline in Japan. The industry in the United States, the single largest market for agency work worldwide, continued to see positive growth throughout 2011 and 2012.Agency work plays - and still has the potential to play further - a valuable role in making labour market transitions happen: from unemployment to work; from education to work; from job to job; from tem-porary to permanent jobs; and for specially helping specially selected target groups; within and to the labour market. Agency work creates jobs that would not otherwise exist, enhancing companies com-petitiveness and workers employability, thereby promoting a labour market that corresponds better to people - and companies - needs and aspirations.

INTRODUCTION


In global markets, continuing to deal with the crisis, agen-cies serve as career agents for workers, showing them the way to work by immediately identifying job vacancies, providing training, and aiding their desired labour market transitions. With the right regulatory framework in place, private employment services benefit labour markets by minimising the time lag between economic upturns and job creation, reducing structural and frictional unemployment and decreasing the effect of labour market segmentation. In addition private employment services improve labour mar-ket intelligence and can contribute to evidence based policy.

The way to work; a job for every person, a person for every job is the vision for the global private employment services industry. It reflects the industrys unique posi-tion in building better labour markets and providing work opportunities and hope to millions of people every day.

1. based on data from 43 countries2. based on data from 42 countries


USA1.8EUROPE1.6 JAPAN1.546 million individuals employed as

agency workers in 2011, equivalent to 12.4 million full time workers

BRANCHES179,000

INTERNAL STAFF

863,000259 BILLIONTOTAL ANNUAL SALES REVENUE

140,000PRIVATE EMPLOYMENT AGENCIES

AGENCY WORK PENETRATION RATE


The players There are 140,000 private employment agencies3

and 179,000 branches4 worldwide, employing 863,000 internal staff

The total annual sales revenues of the top 10 private employment agencies worldwide accounted for 30% of the total agency work market

The global total annual sales revenues amounted to 259 billion5

The USA has the largest market share of the indus-try, with 23% of total annual sales. Japan represents 17% of the global agency work market, followed by the UK at 11%

Europe is the leading regional entity by total annual sales revenues, accounting for 41% of global total annual sales revenues

Agency workers in numbers 12.4 million agency workers in full-time equivalents

were employed by private employment agencies across the globe6

The agency work penetration rate is 1.5% in Japan, 1.6% in Europe7 and 1.8% in the USA

On average agency workers work around half the number of hours as full-time permanent employees8

Most agency work assignments are more than one month long

The profile of agency workers 57% of agency workers in Europe are aged less

than 309

77% agency workers have at best finished their secondary education10

Agency workers are employed in a wide range of sectors represented most strongly in services and manufacturing

3. based on data from 39 countries4. based on data from 30 countries5. based on data from 43 countries6. based on data from 42 countries7. based on data from 29 countries. If Russia is included in calculations, penetration

rate for Europe would be 1.2%8. based on data from 31 countries9. based on data from 24 countries10. based on data from 22 countries

THE KEY FACTS AND FIGURES (2011)


LATEST TRENDS2012WORK INDUSTRY THE AGENCY


THE AGENCY WORK INDUSTRY IN 2012: LATEST TRENDS

US: trends for agency work in 2012 are positive

The agency work industry in the US grew gradually throughout 2011 and continued to do so in 2012. The industry in the USA was at its lowest point for during the first six months of 2009 and has been in recovery since that time. US staffing companies employed an average of 2.95 million tem-porary and contract workers per business day during the third quarter of 2012, which represents a 4.3% increase over the third quarter of 2011.

Source: American Staffing Association 2012

US staffing employment index since 2006

Week-to-Week Change ASA Staffing Index (Set at 100 on 6/12/2006)

6/18

/200

6

12/1

8/20

08

12/1

8/20

10

12/1

8/20

07

6/18

/200

9

6/18

/201

2

12/1

8/20

12

12/1

8/20

06

6/18

/200

7

6/18

/201

1

6/18

/200

8

12/1

8/20

09

6/18

/201

0

12/1

8/20

11

15,00%

10,00%

5,00%

0,00%

-5,00%

-10,00%

-15,00%

-20,00%

120,00

110,00

100,00

90,00

80,00

70,00

60,00


Evolution of number of hours worked by agency workers (year on year)

Source: Ciett National Federations

60.0%

40.0%

20.0%

0.0%

-20.0%

-40.0%

Jan-

08

Mar

-08

May

-08

Jul-

08

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-

09

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-

10

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-

11

Sep-

11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-

12

Sep-

12

FR BE NL PL IT DE NO CH European Average

Note: The weighted European Average is the year on year change of agency workers in full-time equivalent employment on a daily basis (except where noted otherwise). The weighted average determined by the surveyed countries share of the European agency work market in 2010. The countries contributing to the weighted European Average account for 54% of the agency work market in Europe.

Europe: Agency work numbers in Europe fell in 2012

Eurociett, the European confederation of private employment services, has been tracking the number of hours worked by agency workers in the region since 2008. Year on year figures show a decline in the industry beginning in 2008 and continuing through to the second quarter of 2010. The industry was in recovery from the middle of 2010 until the early months of 2012 when the number of hours worked in Europe began to decline again. This fall in hours worked continued throughout the year. As 2012 progressed, the decline of the industry in the region gained pace, however the decline was not as marked as in 2009.



Japan: Agency work continued to decline in 2012.

Agency work in Japan reached nearly 1.5 million full time equivalent workers in the 4th quarter of 2008. With the economic crisis and more restrictive regulations on the use of dispatched (agency) workers, numbers have fallen to 930 thousand for the full year of 2011 and below that figure in the first three quarters of 2012.

Japan: Number of agency workers 000 (FTE)

1600

1400

1200

1000

800

600

400

200

0

Number of agency workers (FTE)

Q3

2012

Q2/

2012

Q1/

2012

Q4/

2011

Q3

2011

Q2/

2011

Q1/

2011

Q4/

2010

Q3

2010

Q2/

2010

Q1/

2010

Q4/

2009

Q3

2009

Q2/

2009

Q1/

2009

Q4/

2008

Q3

2008

Q2/

2008

Q1/

2008

Q4/

2007

Q3

2007

Q2/

2007

Q1/

2007

Q4/

2006

Q3

2006

Q2/

2006

Q1/

2006

Q4/

2005

Q3

2005

Q2/

2005

Q1/

2005

Q4/

2004

Q3

2004

Q2/

2004

Q1/

2004

Q4/

2003

Q3

2003

Q2/

2003

Q1/

2003

Q4/

2002

Q3

2002

Q2/

2002

Q1/

2002

Source: Japan Ministry of Public Management, Home Affairs, Posts and Telecommunications


Evolution of number of hours worked by agency workers in Europe (year on year) versus average EU 27 unemployment change (year on year)

Source: Ciett national federations, Eurostat

Jan-

08

Mar

-08

May

-08

Jul-

08

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-

09

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-

10

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-

11

Sep-

11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-

12

Sep-

12

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

Changes in hours worked (European Average) Y-O-Y Change in unemployment (EU 27)

Europe: Agency work is a bellweather of the employment situation.

Agency work is a leading coincidental economic indicator, with changes in the number of agency workers employed foreshadowing developments in labour markets at large. Agency worker jobs are often the first positions to be lost during economic decline and conversely are some of the first jobs to be created in economic upswings. Latest available data (Septem-ber 2012) showed EU unemployment levels rose by +8.9% compared with the same pe-riod in 2011. At the same time agency work posted -9.2% negative growth in hours worked. Recent months have reported lower numbers of agency workers, while at the same time, year on year unemployment levels have risen.



US: Agency work reacts to labour market demand first

Peaks and troughs in temporary help services (temporary agency work) gen-erally have led those of total nonfarm employment. Temporary help services employment reached a local high in March 1990, three months before nonfarm employment peaked; both series reached a trough in May 1991. 11 The BLS seasonally adjusted data shows high agency work job growth first detected again in September 2009, six months before nonfarm employ-ment began an upward trend in March 2010 which continued through to 2012.

11. Source: U.S. Bureau of Labour Statistics

Employment, seasonally adjusted 000

Source: US Bureau of Labour Statistics

150000

140000

130000

120000

110000

100000

90000

3000

2500

2000

1500

1000

Total nonfarm employment Temporary help employment (temporary agency work)

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1990

Recessions


Evolution of number of hours worked by agency workers (year on year) versus EU 27 GDP growth rate (year on year)

Source: Ciett national federations, Eurostat

Change in hours worked (European average) Growth rate of GDP volume

30%

20%

10%

0%

-10%

-20%

-30%Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12

6%

4%

2%

0%

-2%

-4%

-6%

Europe: The use of agency work mirrors the behaviour of the economy at large

A direct correlation between variations in GDP and the level of use of agency work is well documented. In years of growth, the supply and demand of agency workers increase proportionally, and diminish when the economy falters. As a precise indica-tor of the economic situation, the evolution of the agency work industry is therefore monitored as such, as private employment agencies are among the first actors to feel the impact of economic changes. In Q3 of 2012, Europe measured a year on year decline in hours worked by agency workers of -8.6%. In the same period the year on year EU 27 GDP growth was also declined by -0.4%. These figures show a continuing pattern between the year on year growth rate of EU 27 GDP and evolution of the number of hours worked by agency work-ers in Europe.



US: Agency work is a coincidental economic indicator

Data from the United States illustrates the agency work industrys position as a leading coincidental economic indicator. Changes in temporary agency work occur concurrently with the evolution of GDP and ahead of movement in the labour market at large (represented in the chart opposite as non-farm labour). Agency work jobs are especially sensitive to the ebbs and flows of the economy. As the economy contracts, the number of staffing jobs dramatically declines. As the economy expands, the number of staffing jobs quickly rises. This is especially true when the economy pulls out of a recession.12

12. Source: American Staffing Association, 2012

Percentage Change From Previous Year (Annual)

35%

25%

15%

5%

-5%

-15%

-25%

Temporary Help Employment Gross Domestic Product RecessionsNonfarm Employment

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978


PLAYERSThe


THE PLAYERS

140,000 private employment agencies are operating around the world

In 2011 there was 140,000 private employ-ment agencies globally13. The Asia/Pacific region accounts for 61% of all private employment agencies (PrEAs). Europe rep-resenting 24% of all PrEAs, and with North America accounting for 11%. China, Japan and the USA are the top three countries in terms of number of PrEAs, accounting collectively for 67% of all agencies world-wide. As recognised by the ILO: Private employment agencies play an important role in the functioning of contemporary labour markets. For the past three decades, the increasing need to provide workers and services to a rapidly growing and flexible labour market has led to the spectacular development of these agencies.14

13. Based on data from 39 countries14. Source: ILO Private employment agencies , temporary

agency workers and their contribution to the labour market, 2009

Number of private employment agencies

Source: Ciett national federations 2011 *Source: Ciett national federations 2010 **Ciett national federations 2009 ***ABU members only represented. Based on figures from 39 countries

GreeceRussia

Macedonia**Lithuania*

Luxembourg**Estonia

ItalyArgentina

Romania**Slovakia**

BelgiumPeruChile

PortugalSpain

Slovenia**Netherlands

Netherlands***FinlandSweden

Canada*Hungary*

MexicoNorway

ColombiaAustria**

Denmark*Czech Republic

FranceSouth Korea

Brazil South Africa

AustraliaPoland

GermanyUK**USA*

JapanChina

0 10,000 20,000 30,000 40,000 50,000 60,000

56,00020,000

13,91011,500

6,4723,5373,500

2,6851,878

788

1,813

700

481

1,500

700

431

1,350

667

355

170

70

1,347

650

309

142

41

1,200

500

265

82

129

30

500

194

70

129

27209


Over 179,00 branches offer agency work around the world

In 2011 the total number of PrEA branches was 179,00015. The Asia/Pacific region accounting for 51%, Europe for 26%, and North America for 20%. Japan, USA and the UK are the top three coun-tries by number of branches, accounting together for 74% of all branches worldwide.The global average is 3 physical branches per PrEA.The branch to PrEA ratio varies greatly from country to country, from a staggering 37.5 branches per PrEA in Italy to fewer than one per private employment agency in Germany. This difference can be explained by the very high concentration of the Italian agency work market, characterised by a small number of large compa-nies with an extensive network. This is in contrast to highly fragmented markets, such as Germany, characterised by a large number of PrEAs, often operating from a single local branch (some Ger-man companies operate without any branches, while there is also a number of dormant, non active agencies influencing this number).

15. Based on data from 30 countries

Number of PrEA branches

Source: Ciett national federations 2011*Source: Ciett national federations 2010**Source Ciett national federations 2009 Based on figures from 30 countries

82,681

31,932

17,000

7,500

6,700

5,850

4,827

4,627

2,600

1,983

1,952

1,700

1,650

1,356

1,200

977

900

644625

510

465

262

214

194

194

180

112

75

73

17GreeceLuxembourg*

EstoniaChile*

ColombiaRomania*Slovakia*

Peru*Mexico

Slovenia*Argentina

BrazilSpain

NorwayHungary**

SwedenBelgium

Czech RepublicCanada*

AustriaSouth Korea*

Italy*Germany

South AfricaNetherlands

FranceAustralia

UK*USA*

Japan

0 10,000 60,00020,000 70,00030,000 80,00040,000 90,00050,000

NORTHAMERICA20 EUROPE26 ASIAPACIFIC51


THE PLAYERS

863,000 people were employed as internal staff by agencies in 2011

863,000 people were employed as inter-nal staff [managers, HR consultants and back-office people working in branches] by private employment agencies in 201116. Europe accounts for 32%, Asia/Pacific for 23%, and North America for 18%. The top three countries in terms of internal staff are Japan, Brazil, and the USA, account-ing together for 57% of all internal staff worldwide.

There is a global average of 4 people em-ployed as internal staff per branch, and 10 per private employment agency This illus-trates that the agency work industry is still mostly composed of small and medium-sized companies, despite the presence of several large multinationals operating worldwide.

16. Based on data from 36 countries

Number of internal staff

Source: Ciett national federations 2011 *Source: Ciett national federations 2010**Source Ciett 2009 Based on figures from 36 countries

0 40,000 60,000 80,000 100,000 120,000

191,592155,000

149,27995,865

60,000

34,000

31,500

20,00016,200

6,400

4,100

3,159

15,041

15,000

4,012

3,142

12,950

2,723

2,105

400

11,000

3,800

2,560

1,500

368

9,000

3,680

2,500

600

1,007

307

3,518

470

750

200200Estonia

GreeceLuxembourg*

Slovenia**Austria*

Bulgaria*Uruguay**Portugal*

Slovakia**Russia

NorwayFinland

PeruHungary**

ChileMexico

Romania**Argentina

Czech RepublicNew Zealand

PolandBelgium

South KoreaItaly

Ireland**Sweden

ChinaAustralia

FranceSouth AfricaNetherlands

GermanyUK

BrazilJapanUSA*



The top 10 PrEAs worldwide accounted for 30% of global annual sales revenues in 2011

In 2011 the main global players contin-ued their recovery from the economic crisis. Adecco maintains its position as the largest staffing company worldwide while Randstad with its acquisition of SFN in 2011 stood as the 2nd largest firm with ManpowerGroup taking its place as the third largest industry player.

Top 10 staffing companies in sales revenues 2011 - billion of

Source: Staffing Industry Analysts 2012 - www.staffingindustry.com

25.0

20.0

15.0

10.0

5.0

0.0Adecco Randstad Manpower Allegis

GroupKelly

ServicesHays PLC Recruit

StaffingUSG

PeopleRobert

HalfTempstaff

20.1

16.2 15.8

5.9

4.0 3.7 3.42.4 2.4

3.2


NUMBERSinAGENCY WORK


AGENCY WORK IN NUMBERS

In 2011, the US and Japan are global agency work market leaders by total annual sales revenues

In 2011, the global market for agency work accounted for 259 billion Euros. The US is the world leader with 23% of global annual sales. The Japan represents 17% of the global agency work market. The UK remains the third largest market world-wide with 11% of global total annual sales revenues. From a regional perspective Europe accounts for 41% of global total annual sales revenues, Asia/Pacific for 25% and North America for 24%.

Percentage of total annual sales revenue in 2011

India


12.4 million agency workers were employed daily in 201117

In 2011, the total number of agency workers worldwide amounted to 12.4 million in full-time equivalents19. Europe accounts for 32%, North America for 24%, and South America 14%.The US employs nearly as many agency workers in full-time equivalents [2.8 mil-lion], than the second and third biggest suppliers of agency workers combined. India has the second highest number of agency workers in full-time equivalents [1.3 million], ahead of the UK [1 million] . The total number of agency workers in Europe amounted to 4 million in 2011. Together, the USA, India, and the UK account for 42% of all agency workers assigned worldwide.

17. based on data from 43 countries18. UK figures are representative of the 2010/2011 financial

year19. ibid

Daily average number of agency workers [FTE]

Source: Ciett National Federations *Source: Ciett estimate **Based on figures from 43 Countries0

USAIndia

UKBrazil

South AfricaJapan

GermanyFrance

ColombiaAustralia

ItalyNetherlands

PolandMexico

South KoreaCanada*Belgium

SpainPeru*

PortugalAustria

SwitzerlandRussia

ArgentinaHungary*

SwedenRomania*Slovenia*

IrelandCzech Republic

FinlandNorway

Denmark*Slovakia*

Uruguay**Macedonia*

Bulgaria*New Zealand

GreeceLuxembourg*

EstoniaChile

LithuaniaLatvia

2,800,000 1,300,000 1,049,333 1,022,900 1,003,837 930,000 813,000 576,080 514190 321,000 225,000 218,000 160,852 130,727 106,601 99,000 89,941 87,157 85,000 80,000 74,783 73,452 70,000 69,064 68,000 65,000 50,000 48,000 46,000 35,000 31,000 23,339 21,227 18,500 16,237 12,215 8,000 7,570 5,150 4,300 3500 2213 1,779 353


500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000



On a yearly basis, 46 million people gain access to work through agency work

By offering an entry point to the labour market, agency work encourages in-creased participation and diversity in the labour market. In total 46 million people worked as agency workers in 2011. The USA employs the largest number of agency workers with 12.9 million people gaining employment through agency work each year, followed by Brazil [12.3 million] and Japan [2.6 million]. Europe employs 10.4 million people in agency work each year.

Total number of individuals employed as agency workers

Source: Ciett national federations 2011, *Ciett national federations 2010, *** Ciett Estimate. Based on figures from 42 countries

0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000

1290000012274800

26148822262436

20000001853238

16600001437996

1049333767145

428000

499024

425000

299200

462443

378730

288309

460425

374000

220000

48000

138800

71442

454152

352000

211200

102046

35200

448000

324414

202400

93399

100000

18920

303665

160000

81400

98500

959811055

771755001553Latvia

EstoniaLithuania

ChileGreece

Luxembourg***Bulgaria***

MacedoniaUruguay***Slovakia***

Denmark***New Zealand

FinlandNorwaySweden

Czech RepublicIreland***

SloveniaRomania

SwitzerlandHungary

RussiaAustria

Portugal***Peru***BelgiumCanada*

AustraliaItaly*Spain

ArgentinaSouth Korea

PolandNetherlands

UKMexico

GermanySouth Africa

FranceColombia***

JapanBrazil

USA


Agency work development since 1996

Source: Ciett national federations, Ciett estimates.Note: European average calculated using data from available countries for each given year

US Japan Europe

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1.8%1.8%

1.8%1.8%

1.8%2.0%

1.9%

1.6%

1.6%1.6%

1.6%

1.5%

1.5%

1.5% 1.5%

0.5% 0.5% 0.5%0.6%

0.8%0.9%

1.0%1.0%

1.1%1.1%

1.2%1.2%

1.4% 1.4%1.4% 1.4%

1.7%

1.7%

1.9%

1.9%1.9%1.9% 1.9%

2.1%2.1%

2.1%2.1% 2.1%

2.2%2.2%2.2%2.2%

1.5%

Agency work has developed in differently across regions

Between 1996 and 2011, the agency work industry developed at a different rate in the US, Japan and Europe. The early growth in Japan can be attributed to a gradual deregulation of the Japanese labour market, and the subsequent decline is due partly to the economic crisis, and partly to stricter regulation on agency work coming into place. In 1996 the industry was already well developed in the US and the fluctuations recorded relate more directly to changes in the economic environment facing the US. The industry in Europe evolved over this time as agency work began be estab-lished in a greater number of countries as time went on. In some, notably France and the UK, penetration rates hit their peak around 2000.



Penetration rate of agency work 2008-2011

Source: Ciett national federations, ILO KILM total working population (ILO estimate) European average estimates from 29 national federationsPenetration rate is the share of agency workers (FTE) as part of the total working population of a country

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Arg

enti

na

Aus

tral

ia

Bra

zil

Chi

le

Col

ombi

a

Japa

n

Mex

ico

New

Zea

land

Per

u

Sout

h A

fric

a

Sout

h K

orea US

Euro

pe

2008 2009 2010 2011

Penetration rates for agency work vary across the world

Most countries which report on the number of agency workers witnessed a fall in agen-cy work penetration rate in 2009 followed by a recovery in 2010 and 2011. Significant-ly this trend does not occur in Japan where percentage of agency workers in relation to the total working population has fallen between from a high of 2.2% in 2008 and a low of 1.5% in 2011. Insufficient information was available to provide a comprehensive picture of the industry in 2012, however preliminary trends show a small decline for the industry Europe and Japan but an in-crease in the United States, which has the largest total number of full time equivalent agency workers in the world.


Evolution of agency work around the world

Source: Ciett national federations 2011

At the global level, agency work represents 1% of the working population

The agency work industry around the world has an average penetration rate of 1%20. Figures relating to the size of the agency work industry have been available for an extended period of time in only a small number of countries. The ability to collect such data is related to a number of factors ranging from the lack of legal recognition of agency work, relative size of the industry, availability of national government statistics, and the capacity of national federations to conducts surveys on the industry.

20. Compared to the working population of the 38 countries for which information was available.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Argentina 0,3% 0,3% 0,2% 0,3% 0,4% 0,4% 0,4% 0,4% 0,4% 0,3% 0,4% 0,4%

Australia - - - - - - - - - 2,8% 2,7% 2,8%

Brazil - - - - - - 0,9% 1,0% 0,9% 1,0% 1,0% 1,1%

Canada 0,6% -

Chile - - - - - - 1,3% 0,5% 0,4% 0,4% 0,4% -

Colombia - - - - - - - - - 3,3% 2,7% -

India - - - - - - - - - - - 0,3%

Japan 0,8% 1,0% 1,1% 1,2% 1,4% 1,7% 1,9% 2,1% 2,2% 1,8% 1,5% 1,5%

Mexico - - - - - - - - - 0,1% 0,3% 0,3%

New Zealand - - - - - 0,5% 0,5% 0,4% 0,6% 0,6% 0,3% 0,3%

Peru - - - - - - - - - 0,3% 0,6% -

South Africa - - - - - 2,3% 2,2% 2,1% 3,4% 6,4% 7,1% 7,2%

South Korea - - - - 0,2% 0,3% 0,3% 0,3% 0,3% 0,4% 0,4%* 0,5%

USA 2,3% 1,9% 1,8% 2,0% 2,1% 2,2% 2,2% 2,1% 1,9% 1,5% 1,8% 1,9%

Europe 1,5% 1,4% 1,4% 1,5% 1,6% 1,6% 1,8% 1,9% 1,7% 1,4% 1,6% 1,6%



Europe: Agency work represents 1.6% of the total working population

The average penetration rate for agency work in Europe is 1.6%. The appropriate-ness of regulation and degree of economic development explain the differences in pace of growth of the agency work industry. The countries in which the industry is most developed are also those which have a long history of using agency workers. The reg-ulatory environment in which agency work is allowed to be carried out can also have a significant effect on the penetration rate of the industry.

Agency work penetration in Europe 2011

Note: estimate for Russia not used in calculating European Average. If included, penetration rate in 2011 would be 1.2%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

UK

Net

herl

ands

Irel

and

Fran

ce

Ger

man

y

Bel

gium

Aus

tria

Swit

zerl

and

Swed

en

Finl

and

Pol

and

Ital

y

Nor

way

Mac

edon

ia

Cze

ch R

epub

lic

Esto

nia

Spai

n

Lith

uani

a

Gre

ece

Rus

sia

3.6%

2.6%2.5%

2.2%2.0% 2.0%

1.8%1.7%

1.4%1.2%

1.0% 1.0% 0.9%0.8%

0.7%0.6%

0.5%

Average Penetration in Europe: 1.6%

0.1% 0.1% 0.1%


Europe: Evolution of agency work penetration

In Europe, the appropriateness of regula-tion and degree of economic develop-ment explain the differences in pace of growth of the agency work industry. Recently, countries such as Germany and Poland have revealed their potential, but each for very different reasons: Germany as a heavily-industrialised economy, slowly freeing itself of very strict regula-tory measures, and Poland as a budding regional leader, rapidly catching up its Western European counterparts. The steady growth from 1996 to 2007 halted abruptly in 2008 and but in 2010 and 2011 a recovery can be witnessed in most countries. In 2011 the penetration rate for agency work stood at 1.6%21

21. based on data from 29 countries

Evolution of agency work penetration in Europe

Source: Ciett national federations *Source: Ciett estimate **Source: Eurostat (Nace Code 78.2)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Austria 0,8% 0,9% 0,8% 1,0%w 1,2% 1,2% 1,5% 1,6% 1,6% 1,4% 1,6% 1,8%

Belgium 1,7% 1,7% 1,6% 1,6% 1,8% 1,8% 2,1% 2,2% 2,1% 1,6% 1,9% 2,0%Bulgaria - - - - - - - - 0,1% 0,2% 0,3%* -

Czech Republic - - - - - - - - 0,7% 0,7% 0,7% 0,7%Denmark 0,3% 0,4% 0,4% 0,4% 0,5% 0,6% 0,7% 0,7% 0,7% 0,7% 0,8% -

Estonia 0,5%* 0,5% 0,6%Finland 0,4% 0,5% 0,4% 0,5% 0,6% 0,7% 0,7% 1,1% 1,3% 0,8% 0,9% 1,2%France 2,5% 2,5% 2,3% 2,2% 2,3% 2,3% 2,4% 2,5% 2,3% 1,7% 2,0% 2,2%

Germany 0,9% 0,9% 0,9% 0,9% 1,1% 1,2% 1,5% 1,9% 1,9% 1,6% 2,0% 2,0%Greece - - - - - - - 0,2% 0,0% 0,1% 0,1% 0,1%

Hungary - - 0,8% 1,0% 1,3% 1,4% 1,4% 1,4% 1,4% 1,2% 1,8%* -Ireland 1,5% 1,4% 1,4% 1,4% 1,3% 1,3% 1,5% 1,7% 1,7% 0,9% 1,9% 2,5%

Italy 0,3% 0,3% 0,4% 0,6% 0,7% 0,7% 0,8% 1,0% 0,9% 0,7% 0,9% 1,0%Latvia 0,2%* 0,3%* -

Lithuania 0,2%* 0,2%* 0,1%*Luxembourg 2,2% 2,1% 2,1% 2,1% 2,1% 2,0% 2,5% 2,4% 1,9% 1,9% 1,9% -

Macedonia - - - - - - 0,4% 0,3% 0,3% 0,8% 0,8%* 0,8%Netherlands 2,3% 2,2% 2,1% 1,9% 1,9% 2,2% 2,5% 2,8% 2,9% 2,4% 2,5% -

Norway 0,5% 0,5% 0,5% 0,4% 0,5% 0,6% 1,0% 1,0% 1,0% 0,8% 0,9% 0,9%Poland - - - 0,1% 0,2% 0,2% 0,2% 0,4% 0,5% 0,5% 0,7% 1,0%

Portugal 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 1,6%** 1,6%** 1,7%* 1,6%Romania - - - - - - - - 0,3% 0,3% 0,5% -

Russia 0,1% 0,1% 0,1%Slovakia - - - - - - - - 0,6% 0,6% 0,8%* -Slovenia - - - - - - - - 0,3% 0,3% 0,5%* -

Spain 0,7% 0,7% 0,6% 0,6% 0,7% 0,7% 0,7% 0,8% 0,6% 0,4% 0,5% 0,5%Sweden 1,0% 0,9% 0,8% 0,7% 0,7% 0,7% 0,8% 1,3% 1,3% 1,0% 1,3% 1,4%

Switzerland 1,0% 1,0% 0,9% 0,9% 1,0% 1,2% 1,5% 1,7% 1,7% 1,4% 1,6% 1,7%UK 3,7% 3,7% 3,7% 3,9% 4,1% 4,2% 4,3% 4,7% 4,1% 3,7% 3,0% 3,6%


PROFILEof AGENCY WORKERS

The


THE PROFILE OF AGENCY WORKERS

Agency worker gender balance

Source: Ciett national federations

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Luxe

mbo

urg

Rus

sia

Finl

and

Latv

ia

Japa

n

New

Zea

land

Esto

nia

Chi

na

Aus

tral

ia

UK

USA

Per

u

Col

ombi

a

Pol

and

Gre

ece

Chi

le

Sout

h A

fric

a

Nor

way

Bra

zil

Swed

en

Cze

ch R

epub

lic

Rom

ania

Net

herl

ands

Ital

y

Lith

uani

a

Slov

enia

Spai

n

Slov

akia

Mex

ico

Bel

gium

Mac

edon

ia

Fran

ce

Ger

man

y

Swit

zerl

and

Arg

enti

na

Aus

tria

Male Female

Gender balance of agency workers dependent on a number of factors

From country to country, differences in gender balance in agency work are deter-mined by the particular socio-economic fabric and economic history of each coun-try, as well as by the sectors allowed to use agency work. More services-oriented markets tend to employ more women, such as Sweden [60% of women and 57% in the services sector], whereas markets with a strong industrial history usually employ more men, such as Germany [72% of men and 48% in the manufacturing sector].


Agency workers are typically young, but Japan and the USA have greater number of older workers

Agency workers tend to be older in Japan, where 58% of agency workers are over 30 and in the US, where 68% of agency workers are aged over 30. This can be explained by the fact that in some of these countries agency work is cultur-ally accepted as a viable alternative to permanent employment, while in others agency work is a kind of work most often carried out by young people such as in South Africa, where over 90% of agency workers are under 30.

Age of agency workers


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

< 21 21 - 25 26 - 30 31 - 45 > 45

Chi

na

Japa

n

Indi

a

USA

New

Zea

land

Col

ombi

a

Arg

enti

na

Mex

ico

Sout

h A

fric

a

Bra

zil

58

JAPAN58 US68 SOUTH AFRICA

90 BRAZIL75OVER 30 OVER 30 UNDER 30 UNDER 30



Age of agency workers in Europe


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

< 21 21 - 25 26 - 30 31 - 45 > 45

Nor

way

Luxe

mbo

urg

UK

Mac

edon

ia

Spai

n

Den

mar

k

Fran

ce

Hun

gary

Gre

ece

Swit

zerl

and

Rom

ania

Slov

akia

Ger

man

y

Slov

enia

Cze

ch R

epub

lic

Latv

ia

Bel

gium

Swed

en

Rus

sia

Net

herl

ands

Ital

y

Esto

nia

Finl

and

Pol

and

Europe: Agency workers tend to be young

Over-represented in the agency work sector, when compared to the total active working population, most European agency workers are aged below 30. On average, 10% of agency workers are under 21 years old with 22% are between 21 and 25 years old. A further 25% are between 25 and 30 years old. This means that on average, 57% of agency workers are under 30 years old. Agency work often serves as a first profes-sional experience for first-time entrants into the labour market, providing them with a valuable initial experience or serving as a stepping-stone to permanent employ-ment. Notable exceptions to this trend are Denmark [70% over 30], and Macedonia [69% over 30].

UNDER 3057 OVER 3043


Percentage of agency workers over 50 years old

Source: Ebitemp, Prisme

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Italy France

2.5% 2.6%2.8%

3.3%

3.8%4.3%

4.7%

5.6%

6.2%

7.0%

5.8%6.1%

6.4%6.7% 6.9%

7.5%

8.0%

8.6% 8.7%9.3%

The share of agency workers aged 50+ is increasing

Agency workers over 50 make up an in-creasing share of the industry in France and Italy. Between 2002 and 2011, the proportion of agency workers aged over 50 has steadily increased from 2.5% to7% in Italy and from 5.8% to 9.3% in France. Agency work offers groups such as migrant workers, women returning from childcare breaks, disabled and unemployed people across to the labour market. In principle, agency work can help workers develop their skills and ex-perience, thereby offering pathways into more secure employment.22

22. Source: Eurofound - Temporary Agency Work and Collec-tive Bargaining in the EU | 2009

ITALY+4.5%

FRANCE+3.5%



The percentage of special target groups among temporary employees in the Netherlands

Source: ABU2006 2008

14%

18%

12%13%

2% 1%

3%2%

27%

31%

Ethnic minorities Older workers (45+) Labour incapacitated Long-termunemployed

Total (corrected foroverlap)

35%

30%

25%

20%

15%

10%

5%

0%

Agency workers from target groups are on the rise in the Netherlands

Agency work gives outsiders a viable access to the labour market, thereby increasing labour market participation and diversity. Ethnic minorities, older people, labour incapacitated and the long term unemployed accounted for 31% of agency workers in the Netherlands in 2008. This is up from 27% in 2006. Agency work increas-es labour market flexibility, whilst provid-ing basic rights and working conditions to agency workers. Because the agency remains the workers employer, his rights are capitalised from one assignment to the next. Agency work thus integrates outsid-ers in the labour market, who then benefit from the same working conditions as those provided to other agency workers.


Employment of disabled agency workers in France

Source: Prisme 2011

16% White collar 34% Unskilled blue collar

7% Middle management43% Skilled blue collar

France: Disable agency workers take on a range of positions

In France, 43% of disabled agency workers are classified as skilled blue collar workers, while 7% occupy middle management positions. 16% are white collar employees and 34% are unskilled blue collar workers. Through private employment agencies, disabled agency workers are integrated at every level of companies.



Source: Japan Ministry of Health, Labour and Welfare, Global Survey on Diversified Types of Employment (2010)

0% 20% 40% 60% 80% 100%

Contract (fixed-term) employee

Agency (Dispatched) Worker

Part-Time

Desire to continue the current employment pattern

Desire to become a full-time worker

Desire to adopt an employment pattern other than full-time work

Unknown

46.8%

41.0%

78.1%

49.2%

50.9% 6.9%

18.8%

1.2%

1.7% 1.4%

3.5% 0.5%

Japan: Many see agency work as a desirable form of employment

In Japan 41% of agency workers view agency work as their desired form of work, while half (50.9%) would prefer to have full time work. This reflects both agency works position as a desirable form of flexible work and a stepping stone into permanent work. The trends for fixed term work are similar to those for agency work, while a smaller percentage of part time workers want to become a full time worker.


Educational attainment level of agency workers


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Not completed secondary education

Completed secondary education

Completed higher education

Chi

na

Nor

way

Col

ombi

a

Swed

en

Gre

ece

Aus

tral

ia

Esto

nia

Mex

ico

Rus

sia

Sout

h K

orea

Spai

n

Swit

zerl

and

Per

u

USA

Bel

gium

Net

herl

ands

Ital

y

Sout

h A

fric

a

UK

Arg

enti

na

Bra

zil

Cze

ch R

ebup

lic

Fran

ce

Educational attainment of agency workers varies across the globe

On average, 27% of agency workers have completed higher education. In Sweden and Australia, more than half of agency workers have completed higher educa-tion. In most countries, the majority of agency workers have a low to medium initial education level. On average, 50% of agency workers worldwide have finished secondary school, and 23% have not. The Czech Republic [60%] is the only country to report the majority of agency workers having not completed their secondary education. Agency work can play an im-portant role in helping these low-skilled workers enter the labour market and gain valuable experience.



Most agency workers are employed in services or manufacturing jobs

Reflecting the ongoing mutations of the Eu-ropean economies, the sectoral distribution of agency work in Europe has seen a recent trend away from usage in the industrial sec-tor [31% average], towards a growing use in the services sector [37% average]. Manufac-turing remains an important user of agency work in traditionally industrial economies, such as Poland [70%] and Czech Republic [65%]. Mexico [29%], Norway [15%] and Peru [15%], make important use of agency work in public administration, as do Peru [43%] and France [23%] in the construction sec-tor. More than three in four Chilean agency workers work in the services sector, and 45% of Argentinian agency workers work in the manufacturing sector. It is important to not that in some countries a large propor-tion of agency work is classified as other. This relates to differing methodology in data collection compared to other countries.

Agency worker employment by sector


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Nor

way

Luxe

mbo

urg

UK

Mac

edon

ia

Spai

n

Den

mar

k

Fran

ce

Hun

gary

Gre

ece

Swit

zerl

and

Rom

ania

Slov

akia

Ger

man

y

Slov

enia

Cze

ch R

epub

lic

Latv

ia

Bel

gium

Swed

en

Rus

sia

Net

herl

ands

Ital

y

Esto

nia

Finl

and

Pol

and

Services Public Administration Other

Agriculture Manufacturing Construction


* By an individual during one yearSources : Ciett National Federations, ILO Kilm 7th edition

Colombia Peru

MexicoSouth Africa

Germany Sweden

Brazil Japan

RussiaGreece

Australia Italy

Slovakia Slovenia Uruguay Hungary

Chile Netherlands

Poland Estonia

Switzerland Czech Republic

Romania USA

France Norway

Spain Argentina

Belgium Portugal

Luxembourg

0 500 1,000 1,500 2,000Average per full-time permanent employee Average per agency worker

2,091

1,911

2,250

1,413

1,6251,671

1,6271,689

1,981

2,032

1,728

1,6931,774

1,774

1,778

1,664

1,786

1,722

1,980

1,379

1,9371,924

1,643

1,476

1,426

1,663

1,820

1,577

1,711

1,601

2,047

1,560

1,477

1,400

1,300

1,200

1,1351,021

1,014

930

840

690

688686

520

437

424

500

513

415

400

337

335

289

222

124

1,888

Agency workers tend to work fewer hours than full time permanent workers

Agency workers tend to work fewer hours during one year than a worker with a full-time, open-ended contract with the notable exceptions of Colombia, Peru, Germany and Sweden. From country to country, the average number of hours worked by an agency worker compared to the average number of hours worked by a permanent full-time employee varies greatly, from less than 8% in Luxem-bourg to 141% in Colombia.



Average length of temporary agency worker assignments


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

> 3 months 1-3 months < 1 month

Sout

h K

orea UK

Pol

and

Nor

way

Ger

man

y

Swed

en

Col

ombi

a

Finl

and

Japa

n

Gre

ece

Arg

enti

na

Esto

nia

Sout

h A

fric

a

Latv

ia

Cze

ch R

epub

lic

Bra

zil

Mex

ico

Per

u

Aus

tral

ia

USA

Bel

gium

Net

herl

ands

Swit

zerl

and

Ital

y

New

Zea

land

Spai

n

Fran

ce

Most agency work assignments are more than 1 month long

In most countries, the average length of assignment of an agency worker exceeds one month, and often even exceeds three, the notable exceptions being France [82%] and Spain [63%], where more than half of the assignments are less than one month long. Only 7% of assignments in Peru and 4% in Sweden last for less than a month.


Skill level required for temporary agency work jobs


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Low Medium High

Sout

h A

fric

a

Net

herl

ands

Gre

ece

Swed

en

Nor

way

New

Zea

land

Cze

ch R

epub

lic

Swit

zerl

and

Aus

tral

ia

Esto

nia

Fran

ce

Spai

n

Bra

zil

Arg

enti

na

Cze

ch R

epub

lic

Agency workers tend to be employed in low and medium skilled jobs

Most agency work jobs require low or medium skill levels. Notably how ever, 38% of agency work jobs in France and 33% of agency work jobs in New Zealand require a high degree of skill. Links can be seen between the level of skill required for agency worker jobs, the educational attainment of agency workers and the sectors in which agency workers are most often placed.



Percentage of businesses with 25+ employees that cite as a main reason

Source: American Staffing Association Client Survey

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Fill in for absent employees or temporary vacancies

Provide extra support during busy times or seasons

Staff special short-term projects

Help find good permanent employees

72%

68%

59%

80%

US: Filling temporary vacancies is the most common use for agency work

In an American Staffing Association poll of 500 businesses that use staffing services, 9 out of 10 said it was important to them that staffing companies offer flexibility to busi-nesses so that they can keep fully staffed during busy times. When survey partic-ipants were asked specifically why they use staffing firms to obtain temporary and contract employees, they cited three main reasons: To fill in for absent employees or to fill a vacancy temporarily, to provide extra support during busy times or seasons and to staff special short-term projects.1

Source: American Staffing Association


Size of companies using temporary agency work


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

1-9 employees 10-49 employees 50-99 employees 100-499 employees More than 500 employees

Sout

h A

fric

a

Net

herl

ands

Gre

ece

Swed

en

Nor

way

New

Zea

land

Cze

ch R

epub

lic

Swit

zerl

and

Aus

tral

ia

Esto

nia

Fran

ce

Spai

n

Bra

zil

Arg

enti

na

Cze

ch R

epub

lic

Agency workers are placed in companies of all sizes

Agency workers are placed in companies of all sizes. In Brazil these organisations tend to be small, with 61% of user com-panies having fewer than 50 staff, while in the Czech Republic the same percentage of user companies employ more than 500 employees. An IW Consult study23 carried out in Germany and covering the 2009-2010 period demonstrated that those organisa-tions using agency work recorded revenue growth a full 5% higher than those who did not The study highlighted that the ability to react to increasing demand quickly results in higher revenue growth and a better financial performance for user companies.

23. Source: IW Consult GmbH study Zeitarbeit in Deutschland 2011


Agency work

LABOUR MARKET TRANSITIONS

CREATES JOBSand aids


AGENCY WORK CREATES JOBS AND AIDS LABOUR MARKET TRANSITIONS

Alternatives to temporary agency work

Source: Ciett & Boston Consulting Group, Adapting to Change, 2011

Total Internal flexibility solution

Not do the work Other external flexibility solution

Hire permanent workers

100%

80%

60%

40%

20%

0%

Conclusions

100%

No job creation

(62%)No

substitution(74%)

54%

8%

12%

26%

74% of companies do not consider hiring permanent workers an alternative to AW

In 62% of the cases there would be no job creation as companies chose internal flexibility or not to do the work

% of responses (total = 101)

Two thirds of organisations would not have created jobs without access to agency work

Private employment services are an engine of job creation and help to boost employ-ment by turning available work into jobs. The sector creates jobs that otherwise would not exist and is particularly effective in placing disadvantaged and under-repre-sented groups in society, thereby providing a way for them to start to access job markets and join the world of work. Ciett and the Boston Consulting Group found in their re-port Adapting to Change24 that 74% of user organisations would not consider hiring per-manent workers as an alternative to taking on agency workers. In addition, 62% of the companies would choose internal flexibility solutions (such as overtime) or not to do the work if they had no access to agency work, resulting in a no job creation.

24. Source: Ciett & the Boston Consulting Group, 2011, Adapt-ing to Change


Unemployed before & after agency work

70%

60%

50%

40%

30%

20%

10%

0%

Before After

Fran

ce

Nor

way

Ger

man

y

Bra

zil

Cze

ch R

epub

lic

Swit

zerl

and

Net

herl

ands

Sout

h A

fric

a

Gre

ece

Swed

en


42%

26% 27% 26%

34% 33%

60%

38%

56%

25%

17%19%

15% 15% 14%12%

8% 8%6%

5%

% of agency workers that are officially registered as unemployed before and 12 months after temping

Agency work provides a stepping stone from unemployment into work

Agency work is successful in bringing people from unemployment situations into work. It has proven particularly effective in doing so in countries as diverse as South Africa, Germany, Greece and Sweden. In South Africa 60% of people entering agency work were previously unemployed, while after one year of agency work only 8% returned to unemployment. The agency work market in Greece is relatively small, however it has proven very successful in bringing people into employment, with only 6% of agency workers returning to unem-ployment following a year as an agency worker, compared with 34% of people who were unemployed before accepting their first assignment.



Employed before & after agency work

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Before After

Swit

zerl

and

Bel

gium

Luxe

mbo

urg

Ger

man

y

Cze

ch R

epub

lic

Nor

way

Por

tuga

l

Fran

ce

Nor

way

Sout

h A

fric

a

Swed

en


% of agency workers that are employed (either with a temp, fixed-term or open-ended contracts) before and 12 months after temping

51%

73%

44%

77%

71%

67% 65%61%

43%

69%

36%

56%

49%

59%

20% 21%

33%

18%

8%

80% 81%

A high percentage of agency workers remain in employment after 1 year experience

Not only does agency work help move people from unemployment to work, it also transitions people into long lasting employ-ment situations. After one year of agency work assignments most people stay in the labour market either as agency workers or in permanent or fixed term contracts. Some agency workers return to training or education and a small share return to unemployment or inactivity. In Portugal, only 9% of agency workers were employed be-fore taking their first assignment while 71% remained in the labour market following 12 months of assignments. Similarly positive results can be found in 10 other countries which report this data.


A closer look at agency worker transitions in France

Source: Prisme, 2012

Permanent Contract

Fixed term Contract

Student

Apprenticeship contract

Agency worker

Unemployed indmnified

Unemployed non-indemnified

Inactive

Situtaton before agency work

March 2011 September 2011 March 2012

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Other

France: 55% of agency workers were unemployed or inactive before their first assignment

By taking a closer look at transitions in France a clearer image of agency works transitionary role can be found. Prior to becoming agency workers, the largest share of people taking up assignments were unemployed (42% in total) followed by students (30%) reflecting the role private employment services play in finding work for young people. Six months after beginning as an agency worker 16% had already moved on to permanent or fixed term contracts and after a year that figure jumps to 22%. A 2012 study25 commissioned by Eurociett and Uni Europa26 noted that some agency workers are not looking for direct/permanent contracts, and this should be stressed in research on transitions.

25. Wilke, Maack and Partner: The role of temporary agency work and labour market transitions in Europe, 2012

26. Eurociett and Uni Europa are EU sectoral social partners for the temporary agency work sector



Source: Indian Staffing Federation 2012

0% 20% 40% 60% 80% 100%

0% 20% 40% 60% 80% 100%

Do you know of any of your peers in agency work being absorbed

into permanent employment?

Do you feel the organisation you are

currently assigned to will absorb you

into permanent employment?

Yes

No

Very likely

Not sure

Unlikely

81%

68% 7%

19%

24%

India: Agency work provides workers the opportunity to find permanent jobs

Though by general practice, an agency work assignment in India is temporary, a recent Indian Staffing Federation report found that most agency workers were in continuous employment for more than a year. This in-dicates the ample demand in the market for short duration employment contracts and the ability of staffing agencies to successfully tap this market. This can in turn lead to perma-nent employment opportunities, with 19% of agency workers in India knowing peers who have obtained permanent employment in the user company they were placed in.


Bipartite funds for temporary agency work


Training

Pensions

Social benefits

Health & Safety

Compliance

Italy

Luxembourg

Netherlands

Belgium

Austria

France

Spain

Bipartite funds play a key role in aiding agency workers professional and personal development

Seven EU countries have established sectoral agency work bipartite funds: Austria, Belgium, France, Italy, Luxem-bourg, Netherlands and Spain, where agency workers can have better access to vocational training to improve their employ-ability or to obtain extra social benefits. In addition to the bipartite initiatives, collective labour agreements applicable to temporary agency workers have devised mechanisms to foster their transitions.

ITALY

ITALY

ITALY

ITALY

NETHERLANDS

NETHERLANDS

NETHERLANDS

NETHERLANDS

NETHERLANDS

NETHERLANDS

BELGIUM

BELGIUM

BELGIUM

SPAIN

SPAIN

AUSTRIA

AUSTRIA

LUXEMBOURG

FRANCE

FRANCE

FRANCE

FRANCE

FRANCE

LUXEMBOURG

BELGIUM


As the international confederation of private employment services, Ciett is the authoritative voice repre-senting the interests of the agency work industry across the world.

Founded in 1967, Ciett consists of 49 national federations of private employment agencies and nine of the largest staffing companies worldwide: Adecco, Allegis Group, GI Group, Kelly Services, Kelly Group, Manpower Group, Randstad, Recruit and USG People.

Its main objective is to help its members conduct their businesses in a legal and regulatory environ-ment that is positive and supportive.

Ciett is divided into six regional organisations: Africa/Near East, Northern Asia, Southern Asia, North America, South America [CLETT&A], and Europe [Eurociett].

ABOUT CIETT


The way to work; a job for every person, a person for every job is the vision for the global private em-ployment services industry. It reflects the industrys unique position in building better labour markets and providing work opportunities and hope to millions of people every day.

The values of the PrES industry are centred around people, because work is an essential part of life and identity. These values [listed below] demonstrate the industrys commitment to advancing people and businesses through work.

Quality: The industry promotes ILO core conventions and decent work and calls for appropriate reg-ulation to be adopted on private employment services. The industry works to raise self regulation and quality standards and is committed to fighting rogue and untrustworthy providers in order to get rid of abuses and illegal practices.

Inclusiveness: The industry is committed to engaging in constructive dialogue with all relevant stake-holders governments, trade unions, NGO, academics - to ensure every voice is heard. We are an open industry, willing to develop an inclusive society by increasing labour market participation and diversity.

Serving: As a professional services industry, we are driven by customer satisfaction, be it companies or individuals. We are here to support our customers in their diverse needs and expectations, helping them to adapt to change and to realise their ambitions.

Freedom: We provide more work opportunities for more people, therefore increasing freedom of choice in the labour market. We give people the freedom to choose when, where and how they work.

ABOUT THE WAY TO WORK


The private employment services industry has the collective power to bring about pos-itive change to labour markets and act as a bridge to social and economic progress. As such, over the next five years, Cietts mem-bers have pledged, on a global scale, to:

Support 280 million people in their job life Help 75 million young people enter the

labour market Up-skill 65 million people, giving them

more work choices Create 18 million more jobs Serve 13 million companies with the right

talents to succeed

CIETTS WAY TO WORK PLEDGES

CIETT, THE VOICE OF LABOUR CHOICE

THE WAY TO WORKA JOB FOR EVERY PERSON, A PERSON FOR EVERY JOB

Support 280

million people in their job

life

Help 75

million young people

enter the labour market

Up-skill 65

million people, giving them work

choice

Create 18million more jobs

Serve 13 million

companies with the

right talents to succeed

PEOPLE - QUALITY, FREEDOM, INCLUSIVENESS, SERVING

Tour & Taxis buildingAvenue du Port 86c - Box 302B 1000 - [email protected]

@ciett_waytowork

ww

w.in

extr

emis

.be

Ciett EC Report 2013 Final Web

Documents

global agency work industry

agency work plays

work opportunities

economic report ciett

aids labour market transitions

better labour markets

profile of agency workers

latest industry trends