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CIETT conference shows improving outlook

CIETT conference shows improving outlook for global recruitment industry

Initial feedback from the World Employment Conference in Sao Paulo has highlighted the improving outlook for the global recruitment industry.

The event is the annual showcase for CIETT the representative body for the industry across the world.

Commenting on discussions at the National Federations Committee during the Conferences opening day, Tom Hadley, the RECs Director of External Relations says:

These have been difficult times for the recruitment industry in all countries. However, the feedback from national Federations was upbeat and confirms that we can expect a strong recovery in most countries over the coming year. Exchanging views on effective lobbying campaigns and on demonstrating added value will help to drive the industry forward on a national, regional and global level.

Examples of global trends flagged up at the conference are as follows:

? In the US, temporary work was disproportionally impacted during the downturn. Unemployment is at 9.9 per cent. However over the last seven months 300.000 new temporary jobs have been created. Industry turnover was down 25 per cent in 2009 but is up ten per cent in 2010.
? In Brazil the economy remains relatively buoyant. The industry suffered by eight per cent last year but has since recovered to previous levels. Unemployment is 7.4 per cent Government action is reducing the black economy which is a good thing for the industry. There are huge levels of protection for permanent staff which acts as a barrier to permanent recruitment and increases reliance on agencies.
? In Japan, the overall demand for temporary staff is still being impacted but the rate of decline is slowing and there are positive signs in terms of increasing demand. The markets in China and Korea show continued growth.

? In South Africa , the huge infrastructure projects ahead of the football World Cup has mitigated impact of the downturn on jobs, although the South African economy remains very dependant on what happens in the US and the EU.
? There are tangible upturns in European counties such as Belgium, Holland, Czech Republic and France, with predicted growth of up to 15% this year. In Holland demand is returning in the industrial, blue collar sector. Flexible staffing arrangements are seen as one of the reasons that unemployment in Holland has remained low at just over five per cent.
? In Portugal the industry declined by 25 per cent with construction, manufacturing and the motor industry particularly impacted. The last three months have seen growth, April turnover is back to pre-downturn levels. In Spain a huge proportion of workers are on fixed-terms contacts, but the penetration rate of agency work remains low. The Government is looking at liberalisation and could lift restrictions on agency staff in construction and the public sector. The outsourcing of services is a major trend.
? In France, turnover suffered a 28 per cent hit in 2009. Unemployment has reached ten per cent with young job seekers particularly impacted. New laws have opened up the public sector but taxation on the supply of agency staff is prohibitive.

As well as looking at the latest market trends, the CIETT conference will include discussions on regulatory developments and on measures to raise industry standards and enhance the overall perception of the industry.


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