A new report published by Eurofound reveals that temporary agency work [TAW] is, on the whole, highly regulated across the EU27 with a mix of legislation, collective labour agreements and instruments of self-regulation at national level. However, there are wide variations in what is regulated [e.g. reasons for using TAW, prohibited sectors, maximum length of assignment] and how this regulation is developed and implemented, most notably the role played by social dialogue.
The report examines the role of social dialogue and the importance of collective bargaining in determining working conditions for agency workers, especially with regards to equal treatment. This principle is already implemented in 20 EU member states, however with great diversity and flexibility, through constructive social dialogue.
Coming just weeks after the European Parliament approved the Directive on Temporary Agency Work [2008/104/EC], the study sheds light on both the challenges and opportunities ahead as governments seek to transpose the legislation at national level.
Unlocking the private employment agency industry’s contribution to a better functioning labour market
This report, based on research commissioned by Eurociett, and conducted with the support and assistance of Bain & Company, a global management-consulting firm, comprehensively investigates the private employment agency industry’s contribution to European labour markets.
By 2012, the industry is expected to create more than 2.1 million new jobs in Europe through structural growth and the lifting of unnecessary restrictions on the use of agency work. Private employment agencies are already an engine for job creation, currently employing 3.3 million agency workers [full time equivalent] across Europe. Continued structural growth will raise this by 1.6 million to reach 4.98 million jobs by 2012.
In addition to these 1.6 million new jobs, the report shows that the industry can create a further 570,000 extra jobs if two specific restrictions on temporary agency work are lifted in just 6 key EU countries : sectoral bans [e.g. the prohibition of agency work in the Public Sectors of Belgium, France and Spain and in the construction sectors in Germany and Spain], and limitation of reasons of use [e.g. Belgium’s 3 justifications as defined in law on the use of temporary agency work].
Of these extra 570,000 new jobs, 37% would be filled by young people, 15% by the long-term unemployed, and 6% by older workers. This would also lead to an increase in public income of 8.9 billion euros and substantial savings of over 3.6 billion euros in terms of unemployment benefits. Easier access to work in a fully regulated sector where employees benefit from a full range of protective legislation will play a key role in undermining illegal work whilst simultaneously contributing to public income.
The use of PrEAs is very much in demand by companies as it enables them to focus on their core business and better cope with rapid cycles in demand and unforeseeable production peaks. By adopting greater use of PrEAs, SMEs, will be able to react more quickly, and also find the right people with the right skills at the right time, not having to turn down orders for want of qualified labour.
This report is based on comprehensive research including extensive data gathering at European level with numerous case studies from the six main countries researched; 20 interviews of key industry stakeholders and experts worldwide; the participation of 65 leading ‘names’ associated with the industry in an online survey assessing perceptions of temporary agency work; comparative data and case studies from the six largest European markets [France, United Kingdom, the Netherlands, Germany, Belgium, and Spain, jointly accounting for approximately 85% of the EU-27 agency work market in 2006].
A comprehensive research on temporary agency work across the enlarged EU has been carried out in 2006 by the European Foundation for the Improvement of Living and Working Conditions [EIRO]. The overview report offers a snapshot of temporary agency work in the 25 EU Member States, as well as Norway and the acceding countries Bulgaria and Romania. In addition, the EIRO-Foundation has published 28 national reports on the EU Member States and accession countries, which are also available online.
The results of the research show that temporary agency work is an increasingly significant form of employment in the European Union. In 2004, it accounted for around 1,5% of total employment, involving between 2.5 to 3 million agency workers, employed by approximately 20,000 firms, in a segment with an annual turnover in excess of €75 billion. The survey also reveals that temporary work is a well-regulated industry: virtually all EU Member States have a specific regulatory framework for temporary work agency based on national legislation and/or collective labour agreements.
Eurociett aims at implementing an every-two-year update of the study jointly with the EIRO Foundation. The next publication of an updated version is planned for 2008.
The overview report can be downloaded here. National reports are available on the EIRO Foundation’s website.
The main of this research conducted by Ecorys is two-fold: on the one hand to explain the reasons to engage in agency work for agency workers and user firms; On the other hand, to outline the labour market position of agency work and agency workers in seven EU countries, and the way this position has developed over the past years.
The research shows that reasons for being an agency worker are diverse: to find a permanent job [stepping stone function], to get to know possible employers, to gain work experience and increase employability, to work in a dynamic environment and to harmonise work with other life spheres.
As for the user firms’ motives for hiring agency workers, the survey also leads to a variety of motives: to replace absent employees, to supplement a firm’s labour force, to bring in structural flexibility and to recruit new personnel.
Carried out in 2000 by McKinsey, Ciett has commissioned this strategic research into the evolving economic and social value of the private employment agency industry. The main conclusion of the report is that the Agency Work industry could create some 4.3 million new jobs in Europe between 1998 and 2010, with the condition that a relevant regulatory framework is provided. If such an increase in agency work sector takes place, private employment agencies could raise EU employment by 1% by 2010 and meet about 10% of the employment growth target embodied in the Lisbon objectives.
