ciett economic report 2014
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The Ciett Economic report provides a comprehensive overview of the private employment services industry around the world. The 2014 report is based on some key data available from 2013, and more in depth data over the year 2012.TRANSCRIPT
Economic Report2014 Edition(Based on data of 2012/2013)
2 / Ciett / 2014 Economic Report
CONTENTSTable of
4
Introduction
6
The key facts and figures
8
The private employment
services market in 2012/2013
26
The private employment
services industry
20
Agency work as leading indicator of the economy
1
3
2
2014 Economic Report / Ciett / 3
32
The profiles of agency workers and their assignments
44
Satisfaction and motivation of
agency workers
4
5
52
About Ciett
54
About The Way to Work
56
Ciett National Federation Members
58
Glossary of used terms,
acronyms and country codes
4 / Ciett / 2014 Economic Report
Dear reader,
It is our pleasure to present you with the 2014 annual Ciett economic report. This report will provide you with a comprehensive overview of the agency work industry around the world. It combines some key data that was available from 2013 with more in depth data from 2012.
As the International Confederation of Private Employment Services, Ciett represents a sector that is today the Way to Work for more than 36 million workers around the world. Since its establishment in 1967 Ciett has been providing data about the industry, while this is the 7th economic report. The picture that emerges over the years is one of a robust industry that clearly relates to market volatility. Even so much so, that agency work is considered to be a leading economic indicator.
Considering this, it is promising that the US Staffing Employment Index is at its highest point in the past five years, just as the number of agency workers in Japan, while the European Agency Work Business Indicator has also started an upward trajectory. Together these three markets represent 82% of the worldwide market.
These cautious signs of economic recovery are welcome news not only for our industry, but also for millions of workers and jobseekers around the world. Agency work has proven to be a strong enabler of labour market transitions from unemployment into work, and from temporary work into long lasting careers. Linked to this, Ciett and its members presented in 2011 the Way to Work A job for every person and a person for every job. The Way to Work consists of 5 global pledges by the private employment services around the world, over the course of five years (2011-2016) to:
INTRODUCTION
2014 Economic Report / Ciett / 5
Support 280 MILLION PEOPLE in their job life
Help 75 MILLION YOUNG PEOPLE enter the labour market
UP-SKILL 65 MILLION PEOPLE, giving them more work choices
Create 18 MILLION MORE JOBS
SERVE 13 MILLION COMPANIES with the right talents to succeed
You can read more about the Way to Work and our pledges on pages 54-55.
We hope you enjoy this report in its entirety, but with befitting pride, we would like to draw your special attention to chapter 5, digging into satisfaction and motivation of agency workers. After all, what is more rewarding to see than that on average 80% of workers would recommend agency work to their familiy and friends?
Sincerely,
Fred van Haasteren, Ciett President Annemarie Muntz, Eurociett President Denis Pennel, Ciett & Eurociett Managing Director
KEY FACTS FIGURES &
AGENCY WORK in GLOBAL ANNUAL SALES REVENUE 299.3 Bn
US28.9%
EUR36.5%16.6%
JP
11.5million jobs
36MILLION
WORKERSin agency work
worldwide
In full-time equivalent
SHARE OF GLOBAL MARKET
20126 / Ciett / 2014 Economic Report
For more information, see chapter 1
For more information, see chapter 3
For more information, see chapter 3
JAPANUSA EUROPE
PENETRATION RATES
1.4%2.0% 1.6%
80%would RECOMMEND AGENCY WORK to family or friends (avg. over 6 countries surveyed)
137,300 Agencies203,500 Branches624,500 Internal Staff
2014 Economic Report / Ciett / 7
For more information, see chapter 1 For more information, see chapter 5
For more information, see chapter 3
developments in 2012/2013SERVICES MARKET THE PRIVATE EMPLOYMENT
1
8 / Ciett / 2014 Economic Report
This chapter combines some recent (2013) figures with more in depth data over the year 2012. This combination shows that just as the global economy, the private employment services industry has been through some rough times, but that IN 2013, THE BIGGEST MARKETS THE USA, EUROPE AND JAPAN ALL SHOWED CAUTIOUS SIGNS OF RECOVERY.
November 2013 November 2013 Q3 2013
Y-O-Y GROWTH PENETRATION RATES
EUR1.4%
EUR1.6%
US6.9%
US2.0%
JP26%
JP1.4%
2014 Economic Report / Ciett / 9
10 / Ciett / 2014 Economic Report
1 THE PRIVATE EMPLOYMENT SERVICES MARKET DEVELOPMENTS IN 2012/2013
USA market grows in 2013
The US Staffing Employment Index was set at 100 in 2006. The agency work sector reached 102 in November of 2013, which is its highest position in six years. Exactly 12 months before that, the index stood at 95. Staffing had grown 6.9% y-o-y in November 2013. The index has not yet reached the same level as before the 2008 crisis though.
Employing on average over 2.9 million agency workers each business day in 2012, the USA remains the single biggest market for agency work around the world.
USA: US Staffing Employment Index (Set at 100 on 6/12/2006)
110
105
100
95
90
85
80
75
70
65
60
July
200
6
Oct
. 200
6
Jan.
200
6
Apr
il 20
07
July
200
7
Oct
. 200
7
Jan.
200
7
Apr
il 20
08
July
200
8
Oct
. 200
8
Jan.
200
8
Apr
il 20
09
July
200
9
Oct
. 200
9
Jan.
200
9
Apr
il 20
10
July
201
0
Oct
. 201
0
Jan.
201
0
Apr
il 20
11
July
201
1
Oct
. 201
1
Jan.
201
1
Apr
il 20
12
July
201
2
Oct
. 201
2
Jan.
201
2
Apr
il 20
13
July
201
3
Oct
. 201
3
Source: American Staffing Association
growth6.9% Y-O-Y IN NOVEMBER 2013
2014 Economic Report / Ciett / 11
European market shows cautious upward trend in 2013
In Europe, the monthly Agency Work Business Indicator, showing the year on year growth in the number of hours worked in a range of European countries, shows an upward trend. In October 2013 the first positive growth since December 2011 was recorded at 0.6%; in November this accelerated to 1.4% growth.
European Agency Work Business Indicator: Evolution of hours worked, year-on-year change
60%
40%
20%
0%
-20%
-40%
Jan.
200
7
Apr
il 20
08
July
200
8
Oct
. 200
8
Jan.
200
8
Apr
il 20
09
July
200
9
Oct
. 200
9
Jan.
200
9
Apr
il 20
10
July
201
0
Oct
. 201
0
Jan.
201
0
Apr
il 20
11
July
201
1
Oct
. 201
1
Jan.
201
1
Apr
il 20
12
July
201
2
Oct
. 201
2
Jan.
201
2
Apr
il 20
13
July
201
3
Oct
. 201
3
Source: Ciett national federations
European average
1.4% Y-O-Y growth IN NOVEMBER 2013
no -7.0%de -6.7%ch -0.7%fr 1.5%nl 1.0%be 4.8%it 9.0%
dk 14.0%pl 19.3%
12 / Ciett / 2014 Economic Report
1 THE PRIVATE EMPLOYMENT SERVICES MARKET DEVELOPMENTS IN 2012/2013
In 2013 Japanese market hits record high since 2008
The absolute number of agency workers in Japan has reached 1.1 mln in Q3 of 2013, a growth of 26% compared to Q3 2012. Q1 of 2013 showed a record high with 1.24 mln since Q4 of 2008. The downturn between 2008 and 2013 was caused by the economic crisis as well as restrictive regulation on the use of dispatched (agency) workers. Based on the number of agency workers (in 2012), Japan is the fifth market in the world. By turnover however, Japan ranks second with 17% of total annual sales revenue.
Please note that for comparison an index (USA), year on year growth (European Agency Work Business Indicator) and absolute numbers (Japan) are three different indicators, which cannot be compared one on one.
The Japanese ministry of Health, Labor and Wel-fare provides alternative figures to the Japanese ministry of Public Management, Home Affairs, Post and Telecommunications. The latest availa-ble figures there are for 2011: 1,321,892 (FTE).
Japan: Number of agency workers x 1000 (FTE)
160
140
120
100
80
60
40
20
0
Jan.
200
2A
pril
2002
July
200
2O
ct. 2
002
Jan.
200
2A
pril
2003
July
200
3O
ct. 2
003
Jan.
200
3A
pril
2004
July
200
4O
ct. 2
004
Jan.
200
4A
pril
2005
July
200
5O
ct. 2
005
Jan.
200
5A
pril
2006
July
200
6O
ct. 2
006
Jan.
200
6A
pril
2007
July
200
7O
ct. 2
007
Jan.
200
7A
pril
2008
July
200
8O
ct. 2
008
Jan.
200
8A
pril
2009
July
200
9O
ct. 2
009
Jan.
200
9A
pril
2010
July
201
0O
ct. 2
010
Jan.
201
0A
pril
2011
July
201
1O
ct. 2
011
Jan.
201
1A
pril
2012
July
201
2O
ct. 2
012
Jan.
201
2A
pril
2013
July
201
3O
ct. 2
013
Source: Japan Ministry of Public Management, Home Affairs, Posts and Telecommunications
26% Y-O-Y growth IN Q3 2013
2014 Economic Report / Ciett / 13
Penetration rate developing differently across regions
The penetration rate is the amount of agency workers as a share of the total working population. In different regions, different trends can be observed. This is due to economic reasons as well as regulatory influences. Since 1996 penetration rates in these three key markets have been converging to a certain extent. In 2008 all markets experienced a significant decrease due to the economic crisis. The market in the USA has so far seen the best recovery among the three.
European average excludes Russia. If included, average would be 1.2%Historic series European average was revised
Agency work penetration rate in key markets 1996-2012
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2205
2006
2007
2008
2009
2010
2011
2012
Source: Ciett national federations; ILO - ILOSTAT Database, 2013.
eur 1.6%
jp 1.4%
us 2.0%
US2.0%
EUR1.6%
JP1.4%
14 / Ciett / 2014 Economic Report
1 THE PRIVATE EMPLOYMENT SERVICES MARKET DEVELOPMENTS IN 2012/2013
Source: Ciett national federations
36
8,246,000
EUR
CL(5)
9,600
AR85,300
RU (5)
303,700CA (6)
425,000
KR (5)462,400
CO
595,600
JP
2,504,200
BR
7,104,000
US
11,500,000
ZA
2,210,900
MX
1,644,300
UY (5)71,400
AU
436,000
NZ
100,000
PE (5)374,000
CN (2)
Almost 36 million people worked in agency work in 2012
The total number of agency workers in 2012 is significantly lower than in 2011 (1). With 11.5 mln workers, the USA employs the largest number of people in 2012. Brazil is still second, as in 2011, but with less than 60% of the amount of workers it employed in 2011. South America and Europe both represent around 23% of the total amount of workers. The Asia/Pacific region employs another 10%.
(1) Based on 43 countries(2) Number of workers for China was not included
due to a lack of reliable and comparable data. Estimates for China are around 27 million workers (Source: Staffing Industry Analysts).
(3) UK calculates total number of agency workers on a given moment.
(4) Bulgaria: FTE's.(5) 2011.(6) 2010
World: Total number of individuals employed
million workers
2014 Economic Report / Ciett / 15 Source: Ciett national federations
LV
1,300EE
5,000
LT (3)
7,700
BG (2)
10,000
GR
12,000
LU
18,570
MK(3)
49,000
SK
49,700
IE
70,000
DK (3)
93,400
NO
99,900 FI
100,000
UK (1)
1,128,500
SE
135,100
CZ
190,000
SI (3)
211,200
RO (3)
220,000CH
297,200 101,500
HUAT (3)
324,400
BE
352,000
PT (3)
352,000
ES
410,600
IT
470,000
PL
509,300NL(3)
767,100
DE
877,600
FR
2,000,000
RU (3)
303,700
8,246,000
EUR
CL(5)
9,600
AR85,300
RU (5)
303,700CA (6)
425,000
KR (5)462,400
CO
595,600
JP
2,504,200
BR
7,104,000
US
11,500,000
ZA
2,210,900
MX
1,644,300
UY (5)71,400
AU
436,000
NZ
100,000
PE (5)374,000
CN (2)
Europe: Total number of individuals employed
(1) UK calculates total number of agency workers on a given moment.
(2) Bulgaria: FTE's.(3) 2011.
16 / Ciett / 2014 Economic Report
1 THE PRIVATE EMPLOYMENT SERVICES MARKET DEVELOPMENTS IN 2012/2013
World: Daily average number of agency workers (FTE)
EUROPE4.1 MILLION
35%
ASIA/PACIFIC1.8 MILLION
20%
NORTH AMERICA3.0 MILLION
25%
AFRICA1.2 MILLION
10%
US2,910,000
CL
2,200
NZ
7,800
RU (2)
92,300
CA (5)99,000
AU
327,000
IN
500,000
BR
592,000
JP
900,000
ZA
1,220,200
AR (5)
69,100
CO (5)
514,200
PE (5)
85,000
MX
137,000
UY(5)16,200
KR (5)106,600
Agency workers filled 11.5 million full-time jobs in 2012
In 2012, around the world 11.5 million workers were employed daily as an agency worker (1). That is a slight decrease from 2011 (12.4 million). Considering the bigger decrease in the total amount of workers, this means that on average, the number of hours for each agency worker has increased.
(1) Based on 46 countries(2) Russia is part of European total(3) Germany: total number of individuals(4) UK calculates total number of agency workers
at a given moment.(5) 2011.
Source: Ciett national federations
2014 Economic Report / Ciett / 17
LV
300
LT
2,000
EE
4,000
HR4,300
GR
6,900
BG
10,000
DK
14,700
RO
16,200SK (4)
18,500
TR
20,000
NO
25,000 FI (4)
29,000
SI (4)
48,000
FR
525,100
DE (2)
873,400
UK (3)
1,128,500
MK (4)
49,000
SE
61,100
HU (4)
68,000
CH
73,300
AT
78,400
ES
78,800
PT (4)
80,000
PL
159,600
IT207,000
NL
227,000
IE26,000 BE
84,800
LU
5,700CZ
45,000
RU (1)
92,300
Europe: Daily average number of agency workers (FTE)
SOUTH AMERICA1.4 MILLION
10%
WORLD11.5 MILLION
10%100%
US2,910,000
CL
2,200
NZ
7,800
RU (2)
92,300
CA (5)99,000
AU
327,000
IN
500,000
BR
592,000
JP
900,000
ZA
1,220,200
AR (5)
69,100
CO (5)
514,200
PE (5)
85,000
MX
137,000
UY(5)16,200
KR (5)106,600
Source: Ciett national federations
(1) Russia is part of European total(2) Germany: total number of individuals(3) UK calculates total number of agency workers
at a given moment.(4) 2011.
18 / Ciett / 2014 Economic Report
1 THE PRIVATE EMPLOYMENT SERVICES MARKET DEVELOPMENTS IN 2012/2013
World: Agency work penetration rate, 2005-2012
RUSSIA
0.1%
9.2%
1.6%
0.1%
11.9%
1.4%
2.9%
0.4%
0.6%
2.0%
0.3%
0.6%
2.9%
0.5%
0.6%
0.4%
0.5%1.0%
SOUTH AFRICA
USA
CANADA
MEXICO
CHILEURUGUAY
EUROPE (2)
INDIA
CHINA (3)
SOUTH KOREA
JAPAN
AUSTRALIA
NEW ZEALAND
ARGENTINA
BRAZILPERU
COLOMBIA
2005 2007 2009 2010 2011 2012
Source: Ciett national federations; ILO - ILOSTAT Database, 2013.
0.9% 1.6%world AVERAGE PENETRATION RATEMany markets relatively stable
Penetration rates are quite stable in most markets around the world. South Africa is a big exception, with a growth from 7.7% to 9.2%. Most other markets show either only minimal growth or a decline in penetration rate in 2012. Most notably, penetration rates have gone down in Brazil and in Europe. The global average has gone down from 1.0% to 0.9% (1).
(1) Based on 46 countries. Global average excludes China due to lack of reliable data. Including China, average would be 2.0%.
(2) European average excludes Russia. If included, average would be 1.2%. Historic series Euro-pean average was revised
(3) China estimate Staffing Industry Analysts
2014 Economic Report / Ciett / 19
RUSSIA
0.1%
9.2%
1.6%
0.1%
11.9%
1.4%
2.9%
0.4%
0.6%
2.0%
0.3%
0.6%
2.9%
0.5%
0.6%
0.4%
0.5%1.0%
SOUTH AFRICA
USA
CANADA
MEXICO
CHILEURUGUAY
EUROPE (2)
INDIA
CHINA (3)
SOUTH KOREA
JAPAN
AUSTRALIA
NEW ZEALAND
ARGENTINA
BRAZILPERU
COLOMBIA
Europe: Agency work penetration rate, 2005-2012
PORTUGAL
FRANCE
LUXEMBOURG
NETHERLANDS
CZECH REP.
LITHUANIA
LATVIA
ESTONIA
HUNGARY
AUSTRIA
POLAND
FINLAND
NORWAY
DENMARK
CROATIA
BULGARIAMACEDONIA
GREECE
ITALY
IRELAND
BELGIUM
GERMANY
ROMANIA
SLOVAKIA
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UK
1.4%
0.5%
3.8%
1.0%
0.5%
2.2%
0.03%0.6%
0.9%
1.2%1.3%
0.1%
0.2%
1.0%
0.3%
0.2%
2.4%
0.2%
0.3%1.7%
2.7%
1.9% 1.9%
2.0%
0.9%
0.8%
1.8%0.5%
0.8%
1.7%
RUSSIA
0.1%
2005 2007 2009 2010 2011 2012
Source: Ciett national federations; ILO - ILOSTAT Database, 2013.
1.6% Europe AVERAGE PENETRATION RATE
A LEADING INDICATOR AGENCY WORK AS
2of the economy
20 / Ciett / 2014 Economic Report
2014 Economic Report / Ciett / 21
In times of economic recovery, available work is often first turned into jobs by agency work. THIS IS WHY AGENCY WORK IS A LEADING ECONOMIC INDICATOR: a rise in GDP will more or less coincide with a rise in the number of hours worked by agency workers. Total employment levels will often pick up and follow the same trend only after several months.
The following graphs also show that agency work is a catalyst rather than substitute of job growth.
PRIVATE EMPLOYMENT SERVICES HAVE DEVELOPED AS PART OF THE SOLUTION TO MEET AN INCREASED VOLATILITY IN LABOUR DEMAND AND TO SUPPORT ORGANISATIONS IN ADAPTING TO THE IMPACT THAT EACH CYCLE HAS ON THEIR EMPLOYMENT LEVELS. European Commission European Social Situation Quarterly Review, March 2012
22 / Ciett / 2014 Economic Report
2 AGENCY WORK AS A LEADING INDICATOR OF THE ECONOMY
Agency work returns to positive growth as unemployment growth slows down
In Q3 2013, EU unemployment levels rose by 4.9% compared with the same period in 2012. This means a slowdown in the negative trend. In the meantime, the growth of hours worked by agency workers is nearing zero, which is an improvement from previous periods.
This data continues to display an inverse relationship between unemployment levels in the EU and the amount of agency work being carried out. Recent months have displayed negative growth, while at the same time, year on year unemployment levels have risen. In other words, a rising number of agency work hours generally occurs when unemployment goes down.
40%
30%
20%
10%
0%
-10%
-20%
30%
-40%
Jan.
200
8
Apr
il 20
08
July
200
8
Oct
. 200
8
Jan.
200
9
Apr
il 20
09
July
200
9
Oct
. 200
9
Jan.
201
0
Apr
il 20
10
July
201
0
Oct
. 201
0
Jan.
201
1
Apr
il 20
11
July
201
1
Oct
. 201
1
Jan.
201
2
Apr
il 20
12
July
201
2
Oct
. 201
2
Jan.
201
3
Apr
il 20
13
July
201
3
Oct
. 201
3
EVOLUTION OF AW HOURS WORKED - EUROPE Y-O-Y CHANGE IN UNEMPLOYMENT (EU 28)
Europe: Evolution of number of hours worked by agency workers versus average EU 28 unemployment change (year on year)
Source: Ciett national federations; Eurostat
2014 Economic Report / Ciett / 23
USA: Agency work precedes general employment trend
The agency work industry will usually respond quicker to economic trends both positive and negative - than general employment. For example, in the 2009 recession, agency work started growing again in September, which was about 6 months before general employment.
The flexibility that agency work offers gives businesses an opportunity to turn newly available work into real jobs. This also means that agency work can be considered a leading economic indicator.
The US Bureau of Labor Statistics uses the term "Temporary help services" rather than agency work.
3,000
2,500
2,000
1,500
1,000
150,000
120,000
90,000
1991
1993
1995
1997
1999
2001
2003
2205
2007
2009
2011
2013
AGENCY WORK TOTAL NONFARM EMPLOYMENT
Source: U.S. Bureau of Labor Statistics
Recessions (shaded periods)
USA: Total employment versus agency work, in thousands
24 / Ciett / 2014 Economic Report
2 AGENCY WORK AS A LEADING INDICATOR OF THE ECONOMY
Europe: agency work mirrors economic growth
In Q3 of 2013, agency work in Europe declined by 0.5%, which was the best result since 2011. Coincidentally, GDP development in Europe also saw its best result since 2013, with 0.3% growth. These figures show a continuing pattern between the year on year growth rate of EU 28 GDP and the evolution of the number of hours worked by agency workers in Europe. This reflects that agency work is not a substitute companies use in bad times, but a useful service that will be used more if the economy prospers.
Europe: evolution of number of hours worked by agency workers (year-on-year) versus evolution of GDP volume EU28
6%
4%
2%
0
-2%
-4%
-6%
30%
20%
10%
0%
-10%
-20%
-30%
Jan.
200
8
Apr
il 20
08
July
200
8
Oct
. 200
8
Jan.
200
9
Apr
il 20
09
July
200
9
Oct
. 200
9
Jan.
201
0
Apr
il 20
10
July
201
0
Oct
. 201
0
Jan.
201
1
Apr
il 20
11
July
201
1
Oct
. 201
1
Jan.
201
2
Apr
il 20
12
July
201
2
Oct
. 201
2
Jan.
201
3
Apr
il 20
13
July
201
3
Oct
. 201
3
EVOLUTION OF AW HOURS WORKED - EUROPE EVOLUTION OF GDP VOLUME - EU28
Source: Ciett national federations; Eurostat
2014 Economic Report / Ciett / 25
Agency work is a leading economic indicator
The agency work industry is considered to be hyper-cyclical, meaning that it follows the same trends as employment and GDP, while troughs are deeper and peaks are higher. Since changes in the amount of agency work usually occur simultaneously with changes in GDP and before changes in general employment, agency work is an important indicator of what the nearby future will bring.
USA: Evolution of agency work compared to GDP and total employment
Source: National Bureau of Economic Research, U.S. Bureau of Economic Analysis and U.S. Bureau of Labor Statistics
40%30%20%
10%
0%
-10%
-20%-30%
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
AGENCY WORK GROSS DOMESTIC PRODUCT NONFARM EMPLOYMENT
Recessions (shaded periods)
26 / Ciett / 2014 Economic Report
services INDUSTRY 3THE Private Employment
2014 Economic Report / Ciett / 27
Private employment services offer their broad range of services around the world. Although activities may differ according to local situations, people are always at the core of their work.
Therefore, it is of utmost importance for agencies to have dedicated and EXPERT STAFF AT THE LOCAL LEVEL, where they can be in touch with jobseekers as well as with the companies they serve.
137,300agencies
203,500branches
624,500internal staff
28 / Ciett / 2014 Economic Report
3 THE PRIVATE EMPLOYMENT SERVICE INDUSTRY
17,00050,000120,000
US
4,484
NZ
795003,680
AR
170 (1)214 (2)
2,560 (1)PE
194 (1)112 (2)
3,142 (1)
CL
595221
CO
7502,000
CA
8002503,511
MX
1,3982,35635,340
BR
1,813 (1)1,983 (2)
9,000 (1)
KR
2,3294,27216,139
ZA
3,3007,00015,000
AU
49,000 (5)
CN20,000150,000
JP
201,279
RU
Source: Ciett national federations
World: number of private employment agencies, branches and internal staff
Private employment services operate a close-knit network around the world
In 2012, there were almost 137,300 private employment agencies around the world, which is about the same as in 2011. These had in total 203,500 local branches, where 624,500 internal staff were available to find a job for every person, and a person for every job. This means that private employment services have a very widespread network of labour market specialists covering many corners of the earth. Local branches ensure a deep knowledge of the local labour market, while there are many regional, national and international networks that help workers gain a broader perspective.
(1) 2011(2) 2010(3) 2009(4) Only members represented(5) Source: Staffing Industry Analysts
137,300agencies
203,500branches
2014 Economic Report / Ciett / 29
17,00050,000120,000
US
4,484
NZ
795003,680
AR
170 (1)214 (2)
2,560 (1)PE
194 (1)112 (2)
3,142 (1)
CL
595221
CO
7502,000
CA
8002503,511
MX
1,3982,35635,340
BR
1,813 (1)1,983 (2)
9,000 (1)
KR
2,3294,27216,139
ZA
3,3007,00015,000
AU
49,000 (5)
CN20,000150,000
JP
201,279
RU
Source: Ciett national federations
Europe: number of private employment agencies, branches and internal staff
18,18014,00993,360
5261470(2)
BG
6070170
EE
102109315
LV
129(3)66655
RO
2104,000
IE
2501,2746,400
BE
265(1)
750(2)
PT300501,500
TR
302880
ES
355(3)465(2)
SI
481(4)5,84534,000(1)
NL
500(1)
2,500
FI
5301,3005,060
SE
8673,877
HU
7009002,298
NO
9661,136
DK
1,155194(2)
SK
1,2971,952(1)
400(2)
AT
1,4901,7003,800
CZ
1,5006,90020,000
FR
3,9714,100(1)
PL6,69411,21855,000
DE
UK
972,66911,000
IT
4575309
LU
172285
HR
1011155
GR
27(3)
MK
3240159
LT
624,500internal staff
(1) 2011(2) 2010(3) 2009(4) Only members represented(5) Staffing Industry Analysts
30 / Ciett / 2014 Economic Report
3 THE PRIVATE EMPLOYMENT SERVICE INDUSTRY
Percentage of global annual sales revenue in 2012
1.8%BR
1.9%
IN
5.3%
AU
16.6%
JP
28.9%US
3.7%NL
10.5%UK
6.1%FR
6.8%DE
1.9%IT
3.5%CA
USA grows at the expense of Europe
The USA is still the biggest market in the world, with about 28.9% of total annual sales revenue. This is up from 23% last year. Europe now represents 36.5% of the world market, which is down from 41% last year. Canada was a growing market in 2012, while the market in Brazil severely shrunk, resulting in only 1.8% of the total annual sales revenue.
4 299.3 Bn Global annual sales revenue in 2012
Source: Ciett national federations
US
BRIT
INNL
AU
FR
DE
UK
JP
REST OF WORLD:
18.4%
CA
2014 Economic Report / Ciett / 31
Global annual sales revenue up since 2012
The total agency work sector was worth 1 299.3 Bn in 2013, up from 1 259 Bn in 2012. The top 10 firms took up about 27.5% of the total, the top 3 represented 17.9% of global annual sales revenue.
Top 10 firms sales revenue in 2013 billion of 4
Source: Largest Global Staffing Firms 2013, Staffing IndustryAnalysts
Adec
co
Rand
stad
Manp
ower
Alleg
is Gr
oup
Recr
uit
Hays
PLC
Kelly
Serv
ices
USG
Peop
le
Robe
rt Ha
lf
Tem
psta
ff
1.8%BR
1.9%
IN
5.3%
AU
16.6%
JP
28.9%US
3.7%NL
10.5%UK
6.1%FR
6.8%DE
1.9%IT
3.5%CA
2.9 2.8 2.0
20.5
17.1 16.1
7.4
4.9 4.5 4.2
Adec
co
Rand
stad
Manp
ower
Alle
gis G
roup
Recr
uit
Hays
PLC
Kelly
Serv
ices
USG
Peop
le
Robe
rt Ha
lf
Tem
psta
ff
32 / Ciett / 2014 Economic Report
The Profiles of AGENCY WORKERS 4
2014 Economic Report / Ciett / 33
People doing agency work have very diverse backgrounds. Often, the type of people doing agency work depends on the country, and the sector or the company looking for agency workers. However, it is clear that agency workers are relatively young. This is not surprising, since agency work is often seen as an important stepping stone onto the labour market. As such, AGENCY WORK SUPPORTS PEOPLE IN SEVERAL IMPORTANT TYPES OF TRANSITIONS IN THE LABOUR MARKET: from education to work, from unemployment to work, and from short term employment into longer lasting careers. The importance of smooth transitions is growing in a changing world of work. For companies, being able to efficiently adapt to changing workloads is the most important reason to use agency workers.
TODAY, ABOUT HALF OF THE GLOBAL WORKFORCE IS ENGAGED IN WAGED EMPLOYMENT, BUT MANY DO NOT WORK FULL TIME FOR A SINGLE EMPLOYER. THE SUPPOSEDLY ATYPICAL HAS BECOME TYPICAL; THE STANDARD HAS BECOME THE EXCEPTION.Mr Guy Ryder, ILO Director General in his speech at the 2013 International Labour Conference on the future of work.
61% OF AGENCY WORKERS ARE under 30
WERE EMPLOYED before, afterAGENCY WORK
ON AVERAGE, 32% 68%
34 / Ciett / 2014 Economic Report
4 THE PROFILE OF AGENCY WORKERS AND THEIR ASSIGNMENTS
Gender balance of agency workers
50 50
50 50
32
68
3664
4555
56 44
48 52
51 49
78
22
74
26
50 50
43 57
72
28
60 40
72
28
52 48 6238
70
30
48 52
42 58
45 55
6238
72
2852 48
55 45
54 46
4060
43 57
45 55
US
MX
AR
BR
ES
ZA
IT
GR
41 59HUATCH
BG
FR
LU
PLBE
UKNL
DE
CZ
NO
SE
FI
LVEE
LT
AU
NZ
JP
RU
FEMALE MALE
AVERAGE AGENCY WORKER gender balance
Gender balance varies greatly, depending on types of use of agency work
Gender balance among agency workers depends on many aspects, such as the socio-economic fabric of society, and economic history or tradition. For example, in some countries agency work is mostly done by women who might drop out of the labour market once they start families (e.g. Japan), or by mothers who want to take care of their family and want a flexible work next to that. Typically, countries where agency workers are mostly employed in the services sector tend to have more female agency workers, while countries where agency work is used more in the construction or manufacturing sectors have more male agency workers.
Source: Ciett national federations
54% 46%
2014 Economic Report / Ciett / 35
Agency workers tend to be young
In most countries, the majority of agency workers is under 30. Worldwide, on average 61%. South Africa, India and Finland are striking examples of this trend. South Africa has only 2% of workers over 30, India 18% and Finland 11%. On the other hand, some exceptions include Spain, Germany, Luxembourg, France, Japan and New Zealand. Typically, most of these countries with older agency workers have a well established agency work sector. In these countries, agency work is generally considered to be a good and viable alternative to other types of employment.
(1) Germany: Categories are: