The German Federal Employment Agency publishes interesting figures in its latest report on the temporary staffing industry. Once again, the bridging function into the labor market is highlighted as significant.
Temporary work offers many people a springboard into the labor market
Employee leasing has been regulated by law in Germany since 1972. Since then, the Temporary Employment Act has been amended and revised several times. In the meantime, temporary staffing, which is also known as employee leasing or agency work, has become a permanent fixture on the German labor market. The Federal Employment Agency has now, in January 2019, published the current developments in the temporary employment industry. Also the Franz & Wach Personalservice GmbH, the active since 1996 has already undergone a number of reforms and changes in the staffing industry. The most important developments and findings are summarized below.
Temporary employment as an early indicator and high momentum
The employee leasing industry is responding to changes in the general economic conditions very early and is regarded as an early indicator of developments on the labor market. Thus, the use of temporary work increases in times of an upswing. Even in a phase of downturn, the temporary staffing sector is the area where the consequences become visible at an early stage. This is because before permanent staff are laid off, the use of temporary staffing or the number of temporary workers is usually reduced first.
This is also a reason for the high dynamics in the number of temporary workers. In the 1st half of 2018, a full 777,000 employees established an employment relationship with a temporary employment agency, which is 8% more than in the same period of the previous year. At Franz & Wach, 1,587 entries into an employment relationship were counted in the same period.
Employees in temporary employment and their structures
On a moving annual average (07/2017 to 06/2018), there were in Germany 1.04 million temporary workers employed. Compared with the previous year, this is 2% (25,000) more. The share of total employment was most recently just under 3%, as in previous years. The majority (809,000 employees) work full-time.
Considering that in Germany (as of 06/2018) there are alone 11,700 plants whose main focus is employee leasing, it is all the more surprising that only 5% of them employ more than 100 temporary workers. Franz & Wach had around 2,100 external colleagues on its payroll in December 2018. This makes the company one of the 30 largest personnel service providers in Germany.
If we look at the demographics of the temporary workforce, it is noticeable that the Plural thereof Male and younger, i.e. under 35 years of age. At Franz & Wach, the situation is not quite so extreme. Here, only around 39 % fall into the "male, under 35" category.
Nationwide, most temporary employees work in a manufacturing occupation and 62% of them have a recognized professional qualification. Compared to total employees, this is only 6% less. The proportion of foreign employees in temporary work is significantly higher than for the workforce as a whole. These facts already indicate how important temporary employment is as a stepping stone into the world of work for many people. On behalf of their client companies, many staffing agencies are also increasingly recruiting personnel in other European countries. They also give people without perfect German language skills or high qualifications a Chance. At Franz & Wach, for example, there are currently around 840 foreign colleagues from a wide range of European and non-European countries.
Temporary employment as an entry opportunity into the labor market
In addition to the opportunity for foreign employees, temporary staffing also offers an important opportunity for the low-skilled, refugees, older people and the long-term unemployed. Opportunity to enter the labor market. Thus, the figures of the Federal Employment Agency show that the integration of unemployed people into the employment system succeeds better through employee leasing than in many other industries. At Franz & Wach Personalservice GmbH, too, it is always an important goal to offer all people a chance to regain their footing in the job market or to move forward in their personal development. True to our mission statement "For us, personnel services are more than just filling positions. We enable people and companies to develop." This is a win-win situation, the fulfillment of which drives us every day.
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