The Future of the Dutch Staffing Industry: Navigating Economic Softening and Evolving Regulations

Dutch staffing industry outlook: Temp hiring slows down

Due to a softening economy, the number of temporary agency hours in the Netherlands is likely to decrease in both 2023 and 2024. New regulations and a structurally tight labour market are putting pressure on the earnings models of many staffing agencies. They need to make clear strategic choices in order to remain relevant in the near future.

 

Weaker demand for temp workers

The number of temporary agency hours in the staffing industry - consisting of temporary employment agencies, recruitment firms and payrollers – is set to contract by around 3% in 2023. With economic growth expected to fall sharply this year compared to last, demand for flexible workers is also declining. The drop in temporary agency hours is tempered somewhat because of continued demand for recruitment and selection services from the government and the semi-public sector, partly due to a shortage of personnel. For 2024, we also expect a volume contraction (-2%), mainly due to continued relatively low economic growth.

 

Contraction in the staffing industry in 2023, after two years of strong growth

Volume growth in the Dutch staffing industry, output basic prices, year-on-year

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