the agency work industry around the world · randstad aquired sfn group in 2011 adecco manpower...

2012 Edition (based on figures available for 2010)

The agency work industry around the world

ECONOMIC REPORT

The agency work industry around the world ECONOMIC REPORT

2012 Edition (based on figures available for 2010)

4

In 2010, the global agency work industry recovered much of the ground lost during the economic downturn that started in the USA in 2007, and quickly spread to the rest of the world. The return to growth was witnessed in many countries, however some reported stronger growth than others. The trends in this report go some way to showing that the openness and the socio-economic fabric of national economies and the flexibility of their labour markets account for the difference across countries.

Overall, the total number of agency workers worldwide was 10.4 million1. In parallel, global total annual sales revenues of the agency work industry

amounted to €247 billion2. The negative impact of the economic crisis on the labour market in general, and the agency work sector in particular, began in spring 2008 and accelerated in 2009. This report shows the recovery that the industry made in 2010, but also the continuing trends seen in some countries throughout 2011.

Most markets began to show positive growth in the first quarter of 2010. This trend continued throughout most of 2011, however as the year progressed, the rate of growth witnessed in Europe slowed markedly.

Agency work plays - and still has the potential to play further - a valuable

role in easing transitions within and to the labour market. Agency work creates jobs that would not otherwise exist, enhancing companies’ competitiveness and workers’ employability, thereby promoting a labour market that corresponds better to peoples’ - and companies’ - needs and aspirations.

In global markets continuing to deal with the crisis, the agency work industry’s capacity to anticipate and match labour market needs with the required skills is even more crucial, as agencies serve as career agents for workers, immediately identifying job vacancies, providing training, and facilitating the transition from unemployment to work, from one

Introduction

1. based on data from 43 countries2. based on data from 36 countries

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assignment to the next. In addition, agency prepared the ground for a job-creating economic upturn, helping companies face the ongoing global competitive pressure, increasing labour market participation, and furthermore, accelerating and increasing the number of jobs created as the economy recovers.

Now more than ever, the agency work industry plays a key role in improving the functioning of the labour market, by facilitating a better and faster match between supply and demand of labour, by securing upwards transitions for agency workers, and by providing more work opportunities for more people.

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Content1. The players 11

2. Agency work and the economic recovery 19

3. Agency workers in numbers 19

4. The profile of agency workers 28 a. General trends b. Inclusion and diversity

The key facts & figures

8

The players

• There are 128,000 private employment agencies3 and 176,000 branches4 worldwide, employing 908,000 internal staff

• In 2010 the total annual sales revenues of the top 10 private employment agencies worldwide accounted for 28% of the total agency work market

• In 2010 the global total annual sales revenues amounted to €247 billion5

• The USA is the world leader with 27% of total annual sales. Japan represents 19% of the global agency work market, followed by the UK at 9%

• Europe is the leading regional entity by total annual sales revenues, accounting for 38% of global total annual sales revenues

Agency workers in numbers

• 10.4 million agency workers in full-time equivalents were employed by private employment agencies across the globe in 20106

• The agency work penetration rate is 1.5% in Japan and 1.6% in Europe7 and 1.8% in the USA

• On average agency workers work around half as many hours as full-time permanent employees8

• Most agency work assignments are more than one month long

9

The profile of agency workers

• On average, 57% of agency workers in Europe are aged less than 309 compared with 55% outside Europe10

• 77% agency workers have at best finished their secondary education11

• Agency workers work in a wide range of sectors represented most strongly in services and manufacturing

Agency work and the economic recovery

• Agency work is a bellwether of the economic situation

• The private employment agency industry has rebounded sharply since the recession but industry growth has slowed

3. based on data from 37 countries4. based on data from 29 countries5. based on data from 34 countries6. based on data from 43 countries7. based on data from 29 countries. If Russia is included in calculations,

penetration rate for Europe would be 1.2%8. based on data from 29 countries9. based on data from 17 countries10. based on data from 9 countries11. based on data from 19 countries

11

1. The players

• There are 128,000 private employment agencies12 and 176,000 branches13 worldwide, employing 908,000 internal staff14

• In 2010 the total annual sales revenues of the top 10 private employment agencies worldwide accounted for 28% of the total agency work market

• In 2010 the global total annual sales revenues amounted to €247 billion15

• The USA is the world leader with 27% of total annual sales. Japan represents 19% of the global agency work market, followed by the UK at 9%

• Europe is the leading regional entity by total annual sales revenues, accounting for 38% of global total annual sales revenues

12. based on data from 37 countries13. based on data from 29 countries14. based on data from 34 countries15. based on data from 35 countries

11

12

There are 128,000 private employment agencies...

In 2010 there was a recorded 128,000 private employment agencies globally16. The Asia/Pacific region accounts for 57% of all private employment agencies (PrEAs). Europe accounts for 26% of all PrEAs, with North America for accounting for 12%. China, Japan and the USA are the top three countries in terms of number of PrEAs, accounting collectively for 65% of all agencies worldwide. As recognised by the ILO: “Private employment agencies play an important role in the functioning of contemporary labour markets. For the past three decades, the increasing need to provide workers and services to a rapidly growing and flexible labour market has led to the spectacular development of these agencies.”*

* ILO - Private employment agencies, temporary agency workers and their contribution to the labour market | 2009

Number of private employment agencies**

Source: Ciett national federations 2010*Source: Ciett national federations 2009

**Based on figures from 37 countries

16. Based on data from 37 countries

ChinaJapan

USAUK

GermanyAustralia

NetherlandsSouth Africa

PolandBrazil

Czech RepublicSouth Korea*

DenmarkFranceAustria

ColombiaMexico

Hungary* CanadaNorwaySwedenFinland*

Slovenia*Spain

PortugalChilePeru

BelgiumSlovakia*

Romania* Argentina

ItalyLuxembourg*

LithuaniaEstonia

Macedonia*Greece

0 10,000 20,000 30,000 40,000 50,000 60,000

49,000 20,000 13,910 11,500 6,049 3,500 3,260 3,150 2,998 1,772 1,650 1,419 1,347 1,200 1,200 716 700 667 650 600 500 450 355 350 265 188 170 142 129 129 90 70 41 30 30 27 9

ThE plAyErS

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Number of branches**In 2010 the total number of PrEA branches was 176,00017. The Asia/Pacific region accounting for 52%, Europe for 24%, and North America for 19%. Japan, South Africa and the USA are the top three countries by number of branches, accounting together for 74% of all branches worldwide.

The “branch to PrEA” ratio varies greatly from country to country, from a staggering 37.5 branches per PrEA in Italy to a much smaller ratio in Germany or the UK. This difference can be explained by the very high concentration of the Italian agency work market, characterised by a small number of large companies with an extensive network. This is in contrast to highly fragmented markets, such as Germany or the UK, characterised by a large number of PrEAs, often operating from a single local branch (some Staffing

... with 176,000 branches worldwide



ThE plAyErS

companies operate without any branches, while there is also a number of dormant, non active

agencies influencing this number). The global average is 3 branches per PrEA.


Japan USA

UKSouth Africa

AustraliaFrance

NetherlandsGermany

ItalySouth Korea*

CanadaAustria *Belgium

Hungary*SwedenNorway

SpainBrazil

Slovenia* Argentina

MexicoPeru

Slovakia*Romania *Colombia

Czech RepublicChile

Luxembourg*Greece

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000

82,602 31,932 17,000 7,120 7,000 6,400 5,267 4,177 2,600 1,983 1,700 1,500 1,228 977 850 800 644 589 465 394 246 214 194 194 164 115 112 73 17

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Number of Internal Staff**



0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

USAJapan Brazil

UKGermany

NetherlandsSouth Africa

FranceSweden

Australia Ireland*

ItalyChina

BelgiumPoland

New ZealandArgentinaSlovakia*

Romania*Mexico

Hungary*Finland*

PeruNorway

South KoreaChile

Slovenia*Czech Republic

Portugal*UruguayBulgaria

AustriaLuxembourg*

Greece

191,592 185,000 183,282 95,865 60,000 34,000 31,500 20,000 15,000 15,000 12,950 11,000 10,544 5,794 4,100 4,012 3,680 1,007 3,518 2940 2,723 2,600 2,560 1,950 2,125 1,511 368 820 750 600 470 400 307 200

908,000 people were employed as internal staff by PrEAs in 2010

908,000 people were employed as internal staff [HR consultants and back-office people working in branches] by PrEAs in 201018. Europe accounts for 30%, the Asia/Pacific region for 24%, and South America for 21%. The top three countries in terms of internal staff are Japan, Brazil, and the USA, accounting together for 62% of all internal staff worldwide.

The global average is 4 people employed as internal staff per branch, and 10 per PrEA. This illustrates that the agency work industry is still mostly composed of small and medium-sized companies, despite the presence of several large multinationals operating worldwide.


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ThE plAyErS

Top 10 staffing companies in billions of $

Source: Staffing Industry Analysts 2010 - www.staffingindustry.comNote: Recruit Staffing bought Advantage Resourcing US and Euopean operations in 2011, thus

making Recruit the 4th largest global staffing firm in 2011. Randstad aquired SFN Group in 2011

Adecco Manpower Randstad Allegis Group

Kelly Services

Recruit Staffing

USG People Hays PLC Robert Half Temp Holdings

25.0

20.0

15.0

10.0

5.0

0

21.3

18.9 18.8

6.4

5.0 4.54.1 4.2

2.8 2.4

In 2010 the main global players began their recovery from the economic crisis. Adecco, with $21.3 billion in total annual sales revenues, remains the market leader. Manpower is the second largest PrEA with $18.9 billion, followed by Randstad with $18.8 billion. It should be noted that in 2011 Recruit acquired the US and European operations of Advantage Resourcing, making it the 4th largest global staffing firm. In the same year Randstad acquired SFN Group.


The top 10 PrEAs worldwide accounted for 28% of global annual sales revenues in 201019

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Percentage of total annual sales revenues in 2010

Rest of World18%

Japan 19%

Brazil 3%

Netherlands 4%

Germany 6%

Australia 5%

France 7%

UK 9%

USA 27%

In 2010, the USA and Japan are global agency work market leaders by total annual sales revenues

In 2010, the global market for Agency work accounted for 247 billion Euros. The USA is the world leader with 27% of global annual sales. The Japan represents 19% of the global agency work market. The UK remains the third largest market worldwide with 9% of global total annual sales revenues. Europe accounts for 38% of global total annual sales revenues, North America for 29% and Asia/Pacific for 26%.

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2. Agency work and the economic recovery

• Agency work is a bellwether of the economic situation

• The private employment agency industry has rebounded sharply since the recession but industry growth has slowed

18

Evolution of number of hours worked by agency workers (year on year) versus EU 27 GDP growth rate (year on year)

Note: The weighted European Average is the year on year change of agency workers in full-time equivalent employment on a daily basis (except where noted otherwise). The weighted average determined by the surveyed countries share of the European agency work market in 2009. The countries contributing to the weighted European Average account for 58% of the agency work market in Europe. The EU average is calculated by adding the individual country figures

multiplied by their percentage of the agency work industry in Europe, then scaling the figures to one hundred percent.

Change in hours worked (European average) Growth rate of GDP volume

30%

20%

10%

0%

-10%

-20%

-30%

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11

6%

4%

2%

0%

-2%

-4%

-6%

Agency work continues to display a relationship with GDP growth

The use of agency work echoes the behaviour of the general economy. Various studies have confirmed that there is a direct correlation between variations in GDP and the level of use of agency work. In years of growth, the supply and demand of agency workers increase proportionally, and diminish when the economy falters. As a precise indicator of the economic situation, the evolution of the agency work industry is therefore monitored as such, as private employment agencies are the first impacted by the crisis.

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AgEncy worK And ThE EconomIc rEcovEry

Year on year change in the number of hours worked by agency workers

60.0%

40.0%

20.0%

0.0%

-20.0%

-40.0%

-60.0%

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-

11

FR BE NL PL IT DE NO CH Weighted European Average

The crisis affected the different European agency work markets at different times, depending on the openness of their economies, the maturity of their markets, and their dependence on certain segments of the economy. Accordingly, a country like Germany which weathered the crisis better than most, can be seen to have surpassed the previous levels of temporary agency work achieved before the beginning of the crisis. Italy has also experienced strong growth throughout 2010 and 2011. Poland is an example of a country where agency work does not have a long history, so its strong year on year growth is somewhat expected as it is coming from quite a low base. Agency work in the Netherlands suffered a smaller dip than in other countries, however its return to growth following the crisis has been at a lower rate than in other countries. Trends for agency work

The agency work industry in Europe’s growth continued throughout 2011

in France and Belgium followed similar patterns with strong growth from mid 2010 through to the same

period in 2011 followed by a slowing in the growth of the industry in the third quarter of the year.

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In October, EU 27 unemployment levels rose by +2.4% compared with the same period in 2010. At the same time agency work posted a +1.1% rise in hours worked.

From the beginning of the time series in 2008, an inverse relationship between unemployment levels in the EU and the amount of agency work being carried out is on display. Recent months have shown the growth of the agency work industry to have slowed considerably, while at the same time year on year unemployment levels have began to rise again.

Germany’s agency work industry began to grow again as early as May 2009 and in July 2010, the German agency work industry returned to pre-crisis levels of employment.

Agency work is a bellweather for the economic environment

This can be partly attributed to Germany obtaining more appropriate

regulations later than in other European countries.

Evolution of the number of hours worked by agency workers (year on year) versus average EU 27 unemployment change (year on year)

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%

Jan 08

Feb 08

Mar 08

Apr 08

May 08

Jun 08

Jul 08

Aug 08

Sep 08

Oct 08

Nov 08

Dec 08

Jan 09

Feb 09

Mar 09

Apr 09

May 09

Jun 09

Jul 09

Aug 09

Sep 09

Oct 09

Nov 09

Dec 09

Jan 10

Feb 10

Mar 10

Apr 10

May 10

Jun 10

Jul 10

Aug 10

Sep 10

Oct 10

Jan 11

Feb 11

Mar 11

Apr 11

May 11

Jun 11

Jul 11

Aug 11

Sep 11

Oct 11

Changes in hours worked (European Average) Y-O-Y Change in unemployment (EU 27)

21

AgEncy worK And ThE EconomIc rEcovEry

US staffing employment index since 2006

15.00%

10.00%

5.00%

0.00%

-5.00%

-10.00%

-15.00%

-20.00%

120

110

100

90

80

70

60

6/18/2006 6/18/2007 6/18/2008 6/18/2009 6/18/2010 6/18/2011

Week-to-Week Change ASA Staffing Index (Set at 100 on 6/12/2006)

The American agency work market began to recover earlier than the industry in Europe

American economic activity measured by employment peaked in December 2007. Since then, it has lost jobs until mid 2009 when it began to grow again. But even though the decline in agency work occurred later, it rapidly outpaced that of the American workforce at large, as it played its role of buffer, cushioning the impact on permanent staff. The sustained recovery of the industry points that in the economic recovery, agency workers are among the first to be hired.

22

3. Agency workers in numbers

• 10.4 million agency workers in full-time equivalents were employed by private employment agencies across the globe in 2010

• The agency work penetration rate is 1.5% in Japan and 1.6% in Europe and 1.8% in the USA

• on average agency workers work nearly half as much as full-time permanent employees

• most agency work assignments are more than one month long

24

Daily average number of agency workers (FTE)

Source: Ciett National Federations*Source: Ciett estimate

**Based on figures from 43 Countries

20. based on data from 43 countries21. ibid

USASouth Africa

BrazilJapan

UKGermany

FranceColombia

Australia Netherlands

ItalyMexicoPoland

CanadaSouth Korea

SpainPortugal*

PeruBelgium

Hungary*Switzerland

AustriaArgentina

Russia*Sweden

Romania* Macedonia*

Slovenia *Ireland

Czech RepublicChile

NorwayFinland

DenmarkSlovakia* Uruguay*Bulgaria*

New ZealandGreece

Luxembourg*Estonia

LatviaLithuania

2,584,000 967,000 965,000 960,000 880,000 793,000 520,000 514,190 308,250 208,000 197,000 132,350 114,000 99,000 90,682 87,000 87,000 85,000 81,848 68,000 68,000 66,000 63,000 62,000 60,000 50,000 48,959 48,000 35,000 32,000 31,689 21,811 21,649 21,227 18,500 16,237 8,000 7,567 5,000 4,300 3,000 2,500 2,110

10.4 million agency workers were employed daily in 201020

In 2010 the total number of agency workers worldwide amounted to 10.4 million in full-time equivalents21. Europe accounts for 35%, North America for 25%, and the Asia/Pacific region for 13%.

The USA employs nearly as many agency workers in full-time equivalents [2.58 million] than the second and third biggest suppliers of agency workers combined. South Africa has the second highest number of agency workers in full-time equivalents [967,000], ahead of Brazil [965,000], Japan [960,000] and the UK [860,000], (UK figures are representative of the 2009/2010 financial year). Together, the USA, South Africa, and Brazil account for 44% of all agency workers assigned worldwide.

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AgEncy worKErS In nUmbErS

Source: Ciett national federations*Source: Ciett estimate

**Source: Eurostat (Nace Code 78.2)

Evolution of agency work penetration in Europe1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Austria 0,4% 0,5% 0,6% 0,7% 0,8% 0,9% 0,8% 1,0%w 1,2% 1,2% 1,5% 1,6% 1,6% 1,4% 1,6%Belgium 1,2% 1,3% 1,6% 1,6% 1,7% 1,7% 1,6% 1,6% 1,8% 1,8% 2,1% 2,2% 2,1% 1,6% 1,9%Bulgaria - - - - - - - - - - - - 0,1% 0,2% 0,3%*

Czech Republic - - - - - - - - - - - - 0,7% 0,7% 0,7%Denmark 0,2% 0,2% 0,3% 0,3% 0,3% 0,4% 0,4% 0,4% 0,5% 0,6% 0,7% 0,7% 0,7% 0,7% 0,8%

Estonia 0,5%* 0,5%Finland 0,4% 0,4% 0,4% 0,3% 0,4% 0,5% 0,4% 0,5% 0,6% 0,7% 0,7% 1,1% 1,3% 0,8% 0,9%France 1,3% 1,6% 2,0% 2,2% 2,5% 2,5% 2,3% 2,2% 2,3% 2,3% 2,4% 2,5% 2,3% 1,7% 2,0%

Germany 0,5% 0,6% 0,7% 0,7% 0,9% 0,9% 0,9% 0,9% 1,1% 1,2% 1,5% 1,9% 1,9% 1,6% 2,0%Greece - - - - - - - - - - - 0,2% 0,0% 0,1% 0,1%

Hungary - - - - - - 0,8% 1,0% 1,3% 1,4% 1,4% 1,4% 1,4% 1,2% 1,8%*Ireland 0,2% 0,3% 0,6% 0,6% 1,5% 1,4% 1,4% 1,4% 1,3% 1,3% 1,5% 1,7% 1,7% 0,9% 1,9%

Italy - - 0,0% 0,1% 0,3% 0,3% 0,4% 0,6% 0,7% 0,7% 0,8% 1,0% 0,9% 0,7% 0,9%Latvia 0,2%* 0,3%*

Lithuania 0,2%* 0,2%*Luxembourg 1,2% 1,2% 1,2% 1,7% 2,2% 2,1% 2,1% 2,1% 2,1% 2,0% 2,5% 2,4% 1,9% 1,9% 1,9%

Macedonia - - - - - - - - - - 0,4% 0,3% 0,3% 0,8% 0,8%*Netherlands 2,1% 2,2% 2,4% 2,4% 2,3% 2,2% 2,1% 1,9% 1,9% 2,2% 2,5% 2,8% 2,9% 2,4% 2,5%

Norway 0,3% 0,4% 0,5% 0,5% 0,5% 0,5% 0,5% 0,4% 0,5% 0,6% 1,0% 1,0% 1,0% 0,8% 0,9%Poland - - - - - - - 0,1% 0,2% 0,2% 0,2% 0,4% 0,5% 0,5% 0,7%

Portugal 0,6% 0,6% 0,7% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 0,9% 1,6%** 1,6%** 1,7%*Romania - - - - - - - - - - - - 0,3% 0,3% 0,5%

Russia 0,1%” 0,1%”Slovakia - - - - - - - - - - - - 0,6% 0,6% 0,8%*Slovenia - - - - - - - - - - - - 0,3% 0,3% 0,5%*

Spain 0,5% 0,7% 0,8% 0,9% 0,7% 0,7% 0,6% 0,6% 0,7% 0,7% 0,7% 0,8% 0,6% 0,4% 0,5%Sweden 0,2% 0,3% 0,4% 0,6% 1,0% 0,9% 0,8% 0,7% 0,7% 0,7% 0,8% 1,3% 1,3% 1,0% 1,3%

Switzerland 0,6% 0,6% 0,8% 0,9% 1,0% 1,0% 0,9% 0,9% 1,0% 1,2% 1,5% 1,7% 1,7% 1,4% 1,6%UK 2,6% 2,9% 2,6% 2,8% 3,7% 3,7% 3,7% 3,9% 4,1% 4,2% 4,3% 4,7% 4,1% 3,7% 3,0%

Evolution of the number of agency workers in Europe [FTE]

In the last fifteen years, the number of agency workers in Europe has greatly increased, partially as a result of more appropriate regulation being put in place in formerly tightly regulated labour markets, notably in Italy, Germany, and the Nordic countries, and the opening up of new markets in Central and Eastern Europe.

It is important to note that with each passing year the level of information available on the number of agency workers has improved leading to more countries being represented. Care should be taken to only make direct comparisons to previous years where data is available.

* Denotes Ciett estimate based on the overall evolution of comparable markets between 2009 and 2010 of 8.52%

**Denotes Eurostat estimate (Nace code 78.2)

26

Comparative penetration rate 2008-2010

Note: estimate for Russia not used in calculating European Average. If included, penetration rate in 2010 would be 1.2%

2008 average 1.7% 2010 average 1.6%

2009 average 1.4%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

UK

Net

herla

nds

Ger

man

y

Fran

ce

Irela

nd

Luxe

mbo

urg

Belg

ium

Hun

gary

Port

ugal

Aust

ria

Switz

erla

nd

Swed

en

Finl

and

Nor

way

Italy

Slov

akia

Den

mar

k

Mac

edon

ia

Pola

nd

Czec

h Re

publ

ic

Rom

ania

Esto

nia

Slov

enia

Spai

n

Latv

ia

Bulg

aria

Lith

uani

a

Gre

ece

Russ

ia

2008 2009 2010

Agency work nears its 2008 high in 2010 throughout Europe

Across Europe, the penetration rate for agency work rose. Germany with a penetration rate of 2% and Sweden with 1.3% are notable for having reached all time highs for agency work penetration. The fall in penetration rate in the UK to 3.0% can be attributed data there referring to the financial year of 2009/2010 rather than 2010 as the other countries are reporting. The average penetration rate in Europe was 1.6% in 201022, up from 1.4% in 200923 but still a little short of the 2008 average of 1.7%24. Nevertheless, this average hides enormous differences from country to country, ranging from 3.0% in the UK to 0.1% in Greece. Mature markets in Western Europe, namely the UK, France, Germany and the Benelux countries, are all above average; whereas the markets in Southern and Eastern Europe are all below average.

22. based on data from 29 countries23. based on data from 29 countries24. based on data from 27 countries

27


Evolution of Agency work in the Rest of the World

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Argentina** 0,3% 0,3% 0,3% 0,3% 0,3% 0,3% 0,2% 0,3% 0,4% 0,4% 0,4% 0,4% 0,4% 0,3% 0,4%

Australia - - - - - - - - - - - - - 2,8% 2,7%

Brazil - - - - - - - - - - 0,9% 1,0% 0,9% 1,0% 1,0%

Chile - - - - - - - - - - 1,3% 0,5% 0,4% 0,4% 0,4%

Colombia - - - - - - - - - - - - - 3,3% 2,7%

Japan 0,5% 0,5% 0,5% 0,6% 0,8% 1,0% 1,1% 1,2% 1,4% 1,7% 1,9% 2,1% 2,2% 1,8% 1,5%

Mexico - - - - - - - - - - - - - 0,1% 0,3%

New Zealand - - - - - - - - - 0,5% 0,5% 0,4% 0,6% 0,6% 0,3%

Peru - - - - - - - - - - - - - 0,3% 0,6%

South Africa* - - - - - - - - - 2,3% 2,2% 2,1% 3,4% 6,4% 7,1%

South Korea - - - - - - - - 0,2% 0,3% 0,3% 0,3% 0,3% 0,4% 0,4%*

USA** 1,9% 2,1% 2,1% 2,2% 2,2% 1,9% 1,8% 1,9% 2,1% 2,2% 2,1% 2,0% 1,8% 1,5% 1,8%

Source: Ciett National Federations*Source: Ciett Estimate

**Time series revised compared to previous editions***Change of methodology in 2009 for calculating FTE workers

Denotes Ciett estimate based on the overall evolution of comparable markets between 2009 and 2010 of 8.52%

Evolution of the number of agency workers in the rest of the world [FTE]

Outside Europe the number of agency workers has also markedly increased between 1996 and 2010, on account of the gradual deregulation of the Japanese labour market, and the advent of emerging markets, such as Brazil and South Africa, on the global scene.

It is important to note that with each passing year the level of information available on the number of agency workers has improved leading to more countries being represented. Care should be taken to only make direct comparisons to previous years where data is available.

28

Evolution of penetration rate 2008-2010

Note: estimate for Russia not used in calculating European Average. If included, penetration rate in 2010 would be 1.2%25. based on data from 6 countries

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Arge

ntin

a

Aust

ralia

Braz

il

Chile

Colo

mbi

a

Japa

n

Mex

ico

New

Zea

land

Peru

Sout

h Ko

rea

USA

2008 2009 2010

Outside Europe agency work penetration rates vary widely

Agency work penetration rates are determined in part by the level of maturity of the market in which they evolve. Mature agency work markets are characterised by high penetration rates, indicating a potent blend of large user bases, strong economic growth, and generally relevantly regulated markets. At a mere 0.9%25 of the total regional active working population, the relatively low penetration rate of agency work in South American countries reveals the region’s considerable potential for growth.

29


Comparison of european, Japanese and USA penetration rates.

Note: European average calculated using data from available countries

US Japan Europe

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

USA has the highest penetration rate of major markets

In Europe, the appropriateness of regulation and degree of economic development explain the differences in pace of growth of the agency work industry. In 2010 the penetration rate for agency work stood at 1.6%26

in Europe. The penetration rate for Agency work in the USA bounced back stronger than eirher Japan or Europe, reaching 1.8% in 2010. Stricter regulation was imposed in Japan which led to the agency work industry dipping below that seen in the other major markets. For Europe, it is important to note that with each passing year a greater number of Ciett national federations report on the number of agency workers. this relates to agency work becoming a significant form of employment in these countries. See page 25 for additional information.

26. 2010 data based on information from 29 countries

1.8%

1.8%

1.6%

1.5%

30

Average number of hours worked *

* By an individual during one yearSources : Ciett National Federations, , ILO Kilm 7th edition

Colombia Peru

South Africa Germany

Sweden Brazil Japan

Greece Australia

Italy Mexico

Slovakia Slovenia Uruguay Hungary

Chile Netherlands

Poland Switzerland

Romania USA

Norway France

Argentina Spain

Belgium Czech Republic

Portugal Luxembourg

0 500 1,000 1,500 2,000

Average per full-time permanent employee Average per agency worker

1,911

2,091

1,7761671

1,625

1,6891,627

1,560 1,7332,109

1,6861,778

1,8661,786

1,6641,722

1,961

1,3771,939

1,643

1,778

1,5541,820

1,6631,551

1,9471,714

1,616

1,414

2,068

1,4121,300

1,2001,135

1,1201,0211,014

930840

690688

534465

437

424415

370350

337289288

222124

1,419

Agency workers half as many hours as full-time permanent employees

Agency workers tend to work fewer hours during one year than a worker with a full-time, open-ended contract – with the the notable exceptions of Colombia, Peru, Germany and Sweden. From country to country, the average number of hours worked by an agency worker compared to the average number of hours worked by a permanent full-time employee varies greatly, from less than 8% in Luxembourg to 141% in Colombia. It should be kept in mind that the average working hours reflects a diversity of situations and profiles of agency workers. For instance, sutdents typically work for short periods of time during school holidays, therefore lowering the average to a large extent.

31


Average length of agency work assignments

Ger

man

y

Nor

way

Swed

en

Colo

mbi

a

Finl

and

Gre

ece

Aust

ralia

Sout

h Ko

rea

Arge

ntin

a

Switz

erla

nd

Peru

USA

Belg

ium

Net

herla

nds

Italy

Sout

h Af

rica

UK

Spai

n

Braz

il

Czec

h Re

publ

ic

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Short-term [< 1 month] Medium-term [1 – 3 months] Long-term [3 months]

Most agency work assignments are more than one month long

In most countries, the average length of assignment of an agency worker exceeds one month, and often even exceeds three, the notable exceptions being France [82%] and Spain [63%], where more than half of the assignments are less than one month long. Only 7% of assignments in Peru and 4% in Sweden last for less than a month.

32

4. The profile of agency workers

• differences in gender balance depend on the socio-economic fabric of a country.

• 57% of agency workers are aged less than 30 in Europe

• Agency workers outside Europe tend to be older

• 77% agency workers have at best finished their secondary education

• Agency workers work in a wide range of sectors represented most strongly in services and manufacturing

33

a. General trends

34

Gender balance of agency workers

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Aust

ralia

Finl

and

Japa

n

Swed

en

New

Zea

land

Chin

a

UK

USA

Peru

Colo

mbi

a

Braz

il

Arge

ntin

a

Gre

ece

Czec

h Re

publ

ic

Sout

h Af

rica

Pola

nd

Rom

ania

Net

herla

nds

Italy

Mex

ico

Slov

enia

Spai

n

Slov

akia

Belg

ium

Switz

erla

nd

Mac

edon

ia

Ger

man

y

Fran

ce

Aust

ria

Male Female

Differences in gender balance depend on the socio-economic fabric of a country

From country to country, differences in gender balance in agency work are determined by the particular socio-economic fabric and economic history of each country, as well as by the sectors allowed to use agency work. More services-oriented markets tend to employ more women, such as Sweden [60% of women and 57% in the services sector], whereas markets with a strong industrial history usually employ more men, such as Germany [70% of men and 48% in the manufacturing sector].

35

ThE profIlE of AgEncy worKErS

Average age of agency workers in Europe

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Italy

Nor

way

Net

herla

nds

Belg

ium

Czec

h Re

publ

ic

Slov

enia

Ger

man

y

Slov

akia

Rom

ania

Gre

ece

Hun

gary

Spai

n

Fran

ce

Den

mar

k

Mac

edon

ia

Pola

nd

Swed

en

< 21 21 - 25 26 - 30 31 - 45 > 45

Young people make up a high proportion of agency workers compared to the total active working population with a majority of agency workers being over 30 years of age. On average, 10% of agency workers are under 21 years old with 22% are between 21 and 25 years old. A further 25% are between 25 and 30 Years old. This means that on average, 57% of agency workers are under 30 years old. Agency work often serves as a first professional experience for first-time entrants into the labour market, providing them with a valuable initial experience or serving as a stepping-stone to permanent employment. Notable exceptions to this trend are Denmark [70% over 30], and Macedonia [69% over 30].

Most agency workers in Europe are aged below 30

36

Average age of agency workers in the rest of the world

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Braz

il

Sout

h Af

rica

Arge

ntin

a

Colo

mbi

a

Mex

ico

New

Zea

landUSA

Japa

n

Chin

a

< 21 21 - 25 26 - 30 31 - 45 > 45

Agency workers tend to be older outside Europe

Agency workers tend to be older in Japan, where 58% of agency workers are over 30 and in the US, where 68% of Agency workers are aged over 30.

This can be explained by the fact that in some of these countries agency work is culturally accepted as a viable alternative to permanent employment.

37


Education level of agency workers100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Swed

en

Aust

ralia

Nor

way UK

Finl

and

USA

Belg

ium

Gre

ece

Peru

Arge

ntin

a

Italy

Colo

mbi

a

Net

herla

nds

Sout

h Ko

rea

Spai

n

Switz

erla

nd

Braz

il

Czec

h Re

publ

ic

Sout

h Af

rica

Low [not completed secondary education] Medium [completed secondary education] High [completed higher education]

On average, 27% of agency workers have completed higher education. In Sweden and Australia, more than half of agency workers have completed higher education. In most countries, the majority of agency workers have a low to medium initial education level. On average, 50% of agency workers worldwide have finished secondary school, and 23% have not. The Czech Republic [60%] is the only country to report the majority of agency workers having not completed their secondary education. Agency work can play an important role in helping these low-skilled workers enter the labour market and gain valuable experience.

More than a quarter of agency workers have completed higher education

38

Sectoral distribution of agency work

Agriculture Manufacturing Construction Services Public Administration Other

Peru

Gre

ece

Chile

Nor

way

Sout

h Af

rica

Braz

il

Net

herla

nds

Colo

mbi

a

Mex

ico

Spai

n

Switz

erla

nd

Aust

ralia

Belg

ium

Sout

h Ko

rea

Fran

ce

Italy

Arge

ntin

a

Ger

man

y

Czec

h Re

publ

ic

Pola

nd

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Sectoral distribution of agency work

Reflecting the ongoing mutations of the European economies, the sectoral distribution of agency work in Europe has seen a recent trend away from usage in the industrial sector [31% average], towards a growing use in the services sector [37% average]. Manufacturing remains an important user of agency work in traditionally industrial economies, such as Poland [70%] and Czech Republic [65%]. Mexico [29%], Norway [15%] and Peru [15%], make important use of agency work in public administration, as do Peru [43%] and France [23%] in the construction sector. More than three in four Chilean agency workers work in the services sector, and 45% of Argentinian agency workers work in the manufacturing sector.

39

b. Diversity

40

Percentage of agency workers over 50 in Italy

2002 2003 2004 2005 2006 2007 2008 2009 2010

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

2.5% 2.6%2.8%

3.3%

3.8%

4.3%

4.7%

5.6%

6.2%

Workers over 50 are under-represented in the Italian agency work population. However, their numbers are continually on the rise. In 2004, 2006, 2008 and 2010, the proportion of agency workers aged over 50 has steadily increased from 3% to 4% to 5% to 6%.

“Agency work offers groups such as migrant workers, women returning from childcare breaks, disabled and unemployed people across to the labour market. In principle, agency work can help workers develop their skills and experience, thereby offering pathways into more secure employment.”

Source: Eurofound - Temporary Agency Work and Collective Bargaining in the EU | 2009

The number of agency workers over 50 is increasing in Italy

41


The percentage of special target groups among temporary employees in the Netherlands

2006

2008

14%

18%

12%13%

2% 1%

3%2%

27%

31%

Ethnic minorities Older workers (45+) Labour incapacitated Long-termunemployed

Total (corrected foroverlap)

35%

30%

25%

20%

15%

10%

5%

0%

Agency workers from target groups are on the rise in the Netherlands

Agency work gives target groups a viable access to the labour market, thereby increasing labour market participation and diversity. Ethnic minorities, older people, labour incapacitated and the long term unemployed accounted for 31% of agency workers in the Netherlands in 2008. This is up from 27% in 2006. Agency work increases labour market flexibility, whilst providing basic rights and working conditions to agency workers. Because the agency remains the worker’s employer, his rights are capitalised from one assignment to the next. Agency work thus integrates “outsiders” in the labour market, who then benefit from the same working conditions as those provided to other agency workers.

42

Employment of disabled agency workers in France

Whitecollar16%

Unskilled bluecollar 34%

Skilledblue collar

43%Middle

management7%

In France, 43% of disabled workers are classified as skilled blue collar workers, while 7% occupy middle management positions. 16% are white collar employees and 34% are unskilled blue collar workers. Through private employment agencies, disabled agency workers are integrated at every level of companies.

Disabled temporary agency workers take on a range of positions

43

Notes

44

Notes

45

Notes

About Ciett

46

As the International Confederation of Private Employment Agencies, Ciett is the authoritative voice representing the interests of private employment agency industry across the world.

Founded in 1967, Ciett consists of 47 national federations of private employment agencies and six of the largest staffing companies worldwide: Adecco, GI Group, Kelly Services, Manpower, Randstad, and USG People.

Its main objective is to help its members conduct their businesses in a legal and regulatory environment that is positive and supportive.

Ciett is divided into 6 regional organisations: Africa & Near East, Northern and Southern Asia, North America, South America [CLETT&A], and Europe [Eurociett].

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