The temporary staffing sector in Germany is growing, reveals study
The number of temporary workers in Germany is growing steadily. The number of temporary workers rose by 5.7% (2014: + 3.8%) last year. Overall, sales in the temporary work sector amounted to 20.2 billion Euros, 3.2% higher than in 2014. For 2016 a further increase of 4.0% in value is predicted, as a new study by Interconnection Consulting shows.
The reasons for the positive development of the industry lie in a positive economic environment.
Christian Gebhardt, author of the study, explained, "The past has shown that when the economy is flourishing, the temporary employment market also benefits.”
The atmosphere of vain bliss, however, isn’t everywhere. New legal provisions, which are planned to come into force in 2017, are already casting dark shadows. In the future, the rental maximum of 15 months (which is the current state), will result in the fact that a temporary worker may no longer be committed to the same customers. Thus, according to Gebhardt, rental houses will be required to have a larger portfolio for low-skilled temporary workers and as far as highly qualified temporary workers are concerned, they must either have several customer holdings or a "temp-to-perm" approach (transition from temporary worker to permanent staff of a customer’s premises). Therefore, Interconnection expects a slight decline of the temporary workers quota in proportion to the workforce from currently 2.2% to 2.1% over the forecast period to 2019. The increase in the number of temporary workers is expected to decline significantly from 2017, according to Interconnection.
Overall, the number of agency workers has increased from 898 044 to 949 227. The metal/electric segment employs 282.000 temporary workers (which constitutes the greatest amount of time workers), followed by the transport / logistics customer group (263.000) and production (113.000). Health and social affairs is one of the industry’s markets of the future and increased by 8.5% in value from 2014 in 2015. Other above-average growth rates were recorded in transport and logistics with 9.7% and trade with 9.3%. Apart from the health and social services, it is assumed that the growth of other sectors will level off in the coming years to a level between 2% and 4%. The sectors with the lowest growth rates in 2015 were metal/electronics with 0.1% growth in value terms, corporate organisation with 1.1% and the building/property sector with a decrease of 0.5%. Overall, in temporary work the demand for qualified labour personnel is growing. Skilled workers make up the lion’s share of temporary workers with a total of 60.4%. According to Interconnection, the proportion of unskilled labour will decline from 19.2% last year to 18.4% until 2019. The regional development of temporary workers turned out to be consistent in 2015. The north as well as Saxony were the only regions to record growth rates below 5%. All other regions were usually significantly higher. The largest increase was recorded at 7.4%, in the region Rhineland-Palatinate/Saarland.
In Germany, the number of businesses with an authorisation for temporary workers has experienced its second consecutive year of growth, and currently amounts to 49 819 companies. 11.076 companies do not only have the right to temporary workers, but they make up the business’ core and priority. Essentially, in 2015 some distortions in the rankings within the Top 15 could be observed. For example, due to Autovision’s "Temp-to-Perm" approach, the company lost ground both quantitatively and in value as after some time its temporary workers decided to transfer to the VW ordinary workforce. The market concentration among the top ten companies has also dropped in sales by 0.7% and now amounts to 33.7%.
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