Declining Demand: Cutbacks in Temporary Agency Jobs Reflect Shifting Labor Market Dynamics

Cutbacks in temporary agency jobs

Nearly one in five temporary employment firms experienced declining demand for temporary agency workers at the beginning of the second quarter of 2023. This is also evident in the number of temp jobs. In the first quarter of 2023, the number of temporary agency jobs contracted by 45,000 (-6%) compared to the same period a year earlier, the first drop in two years.

 

The decrease in temporary jobs has also been caused by the fact that temporary workers are often offered a permanent contract more quickly in the current tight labour market. In addition, under current legislation and regulations, it is more attractive to work as a self-employed person than as a temp worker in certain sectors – such as health, hospitality and construction.

 

Strong cutbacks in temporary agency jobs in the first quarter of 2023

Growth in the number of temporary agency jobs in the first quarter, year-on-year 

 

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