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Eurociett publishes agency work business indicator for November

After a good month in August with (revised) 3.3% year-on-year growth, the growth of number of hours worked in Europe slowed down in September to 1.1% y-o-y. Germany, Norway, France and Switzerland show growth below the European average. For Germany however, the 0.4% y-o-y growth is the first time since July 2012 of positive growth. France on the other hand showed the worst result since September 2013. Meanwhile, y-o-y growth in Belgium is slowing down, mostly because the last quarter of 2013 was relatively strong, so this year looks weaker in comparison. Its 4.8% growth is still a good result though. The Netherlands is doing better and better, with growth of 10% in September and 9% in October.  


Just as in the number of hours worked, turnover developments show a mixed picture. France is struggling, while the Netherlands is improving, and Belgium is slowing down after some very strong results over the summer. Despite some ups and downs Finland seems to have an upward trend as well.    


In October 2014, the number of hours worked by temporary agency workers was 0.15% higher than a month earlier (seasonally adjusted data, corrected for calendar effects). An increase was observed both in the blue collar segment by 0.14% as in the white collar segment by 0.15%. In comparison with October 2013, the activity in the temporary agency work industry grew by 4.79% (compared to 6.14% in September 2014) resulting from a rise in the blue collar segment (hours worked: 3.77%) and in the white collar segment (6.32%). 

After August stabilization, in September, number of hours worked has declined-3.5% and turnover has dropped 1.5% (Year over year, days adjusted). With 0.7% during the third quarter, turnover has still improved, but after 1% in the first quarter, 0.8% in the second quarter, level of growth is slowing down. With -3.6% in October, number of temps at work has still decreased. In the detail, except deterioration in Champagne Ardennes of 5.7 percentage points and improvement of 7.6 percentage points in Languedoc Roussillon, regional trends have remained in line with September’s. 

In period 11 (week 41 – 44) the total amount of hours increased 9% and also turnover grew 9%, in comparison with 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 7% in hours and turnover increased with 9%.  ? Hours in the industrial sector increased 7% and turnover increased 6%.  ? Ultimately, the amount of worked hours in the technical sector increased 19% compared to the same period last year, turnover increased 16%. 

The Norwegian staffing industry experienced a fall of -4.8% in the number of hours worked by temporary workers during the first quarter of 2014 compared with the same period last year. Turnover was however at the same level as the year before and this shows that it has been a slightly price growth in the period. In line with a cooling of the Norwegian economy, declines were noted across most occupation categories. Sharp declines were reported in Warehouse/Logistics/Transport (-12.6%), IT (-10.6%), Manufacturing & Production (-9.7%), and Call Centres (- 9.7%). It is also worth noticing a 7,2% decline in the largest occupation category of the Norwegian staffing industry, construction work. The penetration rate of the agency work industry stays stable on about 1% even though the market is declining. This shows that the development in the numbers of people working through the industry is proportional with the total Norwegian workforce. The agency work industry is closely linked to the total economic development.  A decline tells us that the Norwegian economy is slowing down and that there is a risk of unemployment growth.

Every year the staffing industry finds jobs for 172,000 people via staffing, outplacement and direct recruitment. We enable a competitive industry and more effective public services. The time has now arrived to present statistics for the year’s second quarter. The staffing industry& lsquo;s turnover amounted to just over SEK 5.5 billion during the second quarter of 2014, which is an increase of 5% compared with the corresponding quarter last year. Since 2011 quarterly turnover has been stable at around SEK 5 billion. Staffing accounted for 88% of the industry’s turnover, while outsourcing comprised 6%. Outplacement and recruitment each turned over 3%.

With 27% of the turnover, sales to industry constituted the largest occupational area, growing by 12% during the period. Logistics sales amounted to 18%, a growth of 10% during the period. After that, the largest occupational areas are administration at 14% and accounting at 9%. Healthcare turned over 8%, IT 7%, technology 6%, call centres 3% and marketing 2%. The remaining 6% was made up of a number of smaller occupational areas.  

UK Temp billings rise at slowest rate since June 2013: Agencies’ billings from the employment of temporary/contract staff continued to rise in October. However, the rate of expansion moderated noticeably since September, hitting a 16-month low. As was the case for permanent placements, the Midlands led the way in terms of temp billings growth during October. The South posted the slowest rise. 

(The Eurociett Agency Work Business Indicator plots indicators of the evolution of turnover (defined as the revenues generated by private employment agencies in the temporary staffing segment) and hours worked. (defined as the sum of all hours invoiced by all private employment agencies to all user companies except where otherwise stated) In Germany, the indicator is total number of agency workers and the indicator for Switzerland is number of workable days).  

Data supplied by the national federations of agency work is also plotted against the evolution of GDP and unemployment volumes in the European Union. In 2012, Europe accounted for 36% of the global agency work market by revenue, and placing 4 million agency workers in full-time equivalent on a daily basis.  

Currently no quantitative data on the number of hours worked is available for the UK. Information for the UK national federation (REC) update originally appear in the Report on Jobs. The Report on Jobs is a monthly publication produced by Markit on behalf of the Recruitment & Employment Confederation and KPMG. The report features original survey data which provide the most up-to-date and comprehensive monthly picture of recruitment, employment and employee earnings trends available.)


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