Eurociett Agency Work Business Indicator: April 2014
After a slight revision of the calculation of our European average, data shows a little slump of the year-On year growth in the beginning of the year. In February, growth was picking up again to 2.3%, and the first data for March shows a further increase (based on NL, BE and CH the European average would come to 7%).
Turnover developments show a mixed picture, with Belgium performing best this past month with a year-on-year growth of 7.7%. Growth in France has also been increasing. Growth in turnover in the Netherlands is slowing down a little bit since last month (just as hours worked), while Finland in fact performs worse than previous month with a y-o-y decline in turnover of 1.4%.
In March 2014, the number of hours worked by temporary agency workers was 2.13% higher than a month earlier (seasonally adjusted data, corrected for calendar effects). An increase was observed both in the blue collar segment by 2.27% as in the white collar segment by 1.94%. In comparison with March 2013, the activity in the temporary agency work industry grew by 7.22% (compared to 1.82% in February 2014) resulting from a rise in the blue collar segment (hours worked: 11.21%) and in the white collar segment (2.18%).
After a decline in January, business activity has stabilized in February: number of hours worked increased 0.5%. In the same time, temporary work turnover increased 1.0%. In March 2014, the number of temps at work has been reduced by 1.8% (in comparison with March 2013). During the first quarter, the agency workers have decreased by 3.5%. In the detail, temporary work has grown in 9 regions. Trends in Limousin (9,8%), Auvergne (8,6%) and Haute Normandie (4,1%) have been the most favourable.
In period 3 (week 9 to 12) the total amount of hours increased 3% and also turnover grew 3%, in comparison to the same period last year. This period had an equal amount of workable days compared to the same period last year, so no correction was applied. • The administrative sector increased 5% in hours and also turnover grew 5% in comparison to the same period in 2013. • Hours in the industrial sector increased 1% and turnover increased 1% compared to the same period last year. • Furthermore, the amount of worked hours in the technical sector increased 5% and also turnover increased 5%.
The staffing agencies continued to strengthen their role as a strategic partner for Swedish industry during the last quarter of 2013. The industry grew during the last quarter by 5.4% compared with the same period last year. A weak start to 2013 meant that during the year the industry fell by a total of 1%, turning over some SEK 20 billion. (This refers to the industry's 35 largest companies.) Sales of staffing services to industry (24%) and the logistics sector (15%) grew substantially during the quarter. On a full year basis the increase was negligible. These two sectors account for 44% of turnover in the Swedish staffing market. Total sales during the year amounted to almost SEK 9 billion within these two sectors. Use of the staffing agencies’ services is moving more and more towards longer and more complex solutions, which, among other things, is resulting in increasing sales of outsourcing commissions. This area grew during the fourth quarter by 39% and on a full-year basis by 22%. Overall SEK 1 billion was invoiced during the year for outsourcing solutions. The fourth quarter displayed a continuing positive trend for the Health and Medical Care sector, with growth of 17% and 10% for the full year. Overall almost SEK 1.5 billion was invoiced within this occupational area. The sector is consolidating its important role in the Swedish labour market as a central HR supplier for a competitive industry, an efficient logistics structure and an available health care system.
UK Moderation in growth of temp billings - Agencies’ billings from the employment of temporary/contract staff increased further in March, extending the current period of growth to 11 months. Although remaining strong, the rate of expansion eased to a nine month low. Higher client workloads were generally reported to have driven temp billings growth in the latest survey period. The Midlands led a broad-based upturn in short-term staff billings in March. The slowest growth was recorded in the North.