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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.
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Economic Report 2014 Edition (Based on data of 2012/2013)
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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:


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