Results of the Eurociett agency work business indicator December 2014
Evoultion of number of hours worked in Europe
The European average year-on-year growth seems to bounce back after a 12-month low in September. In October the preliminary growth figure stands at 2.5 per cent, with strong performances in Italy and Poland, although Poland is no longer topping the chart. France has gone further down, from -3.5 per cent y-o-y in September to -4.5 per cent in October. Germany on the other hand shows a slight improvement, from negative growth in July and August to a moderate
growth of 0.4 per cent in September.
Evolution of agency work sales revenue in Europe
Also in turnover development France shows a worrisome trend of futher decline. In October France saw turnover decline with 4.5 per cent compared to October 2013. All other countries included in this overview have now had positive turnover developments. Unlike in hours worked, Poland still shows the biggest year-on-year growth with 18.1 per cent.
Hours worked's correlation with unemployment and GDP statistics
In the second quarter of 2014 both y-o-y GDP growth and evolution of hours worked were still positive, but showed a slight slowdown compared to Q1 of 2014. These figures show a continuing pattern between the year on year growth rate of EU 28 GDP and evolution of the number of hours worked by agency workers in Europe, meaning that agency work is a coincidental economic indicator of GDP growth.
Eurociett National Federation Comments
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 -3.5% in September (year over year, days worked adjusted) number of hours worked decreased by -4.5% in October. In the same time, turnover declined by 3.5%. In November, number of temps at works has declined 6.5%. In the detail, except Haute Normandie that has improved, trends have deteriorated in all regions. The decline is particularly significant in the South area Aquitaine -12.7%, PACA -10.3% and Midi-Pyrénées -5.7%.
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.
Temp billings rise at stronger rate. Billings received by agencies from the employment of temporary and contract staff continued to increase in November. The rate of growth accelerated from the previous month, although remained slower than that recorded between June and September. Growth of temp billings was fastest in the Midlands and weakest in the South of England during the latest survey period.