Summary of study findings

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Eurociett / UNI Europa Pan-European conference: Temporary agency work and transitions in the labour market Brussels , 19 December 2012. Summary of study findings. Eckhard Voss. in cooperation with : Institute for Employment Studies (UK) IRES Rome ( Italy ) ORSEU, Lille (France) - PowerPoint PPT Presentation

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Summary of study findingsEckhard VossEurociett / UNI Europa Pan-European conference:

Temporary agency work and transitions in the labour market

Brussels, 19 December 2012

in cooperation with: Institute for Employment Studies (UK) IRES Rome (Italy) ORSEU, Lille (France) Lentic Ecole de Gestion de l'Universit de Lige (Belgium)1Overview of the study2Systematic review of data and research on how TAW contributes to facilitating transitions in the labour market, in line with the concept of making transitions pay1st layer: Overview of TAW in EU27Gathering comparable data and information on TAW on the basis of existing data, focussing on:Dynamics of TAW during the last decadeRegulatory frameworksProfile of TAW workersWorking conditions and equal treatment Industrial relations, collective bargaining and social dialogue2nd layer: In-depth analysis of 6 countriesFollowing a comparative format of contents and dataReview of results regarding TAW and labour market transitionsRole of social partners and social dialogue3rd layer: Case studies of labour market transitionsUnemployment to workTemporary to permanent workEducation to workTarget groupsRole of social partners

2Temporary agency work in Europe3In 2010, according to CIETT Economic report 2012, the total number of temporary agency workers worldwide was 10.4 million in FTEs; Europe accounted for 35%, i.e. 3.6 millionShare in total employment in EU27 today is around 1.4% on average with significant differencesCyclical nature of TAW: employment trends before, during and after the crisisBetween 2000 and 2008, the TAW workforce increased by more than 47% while total employment increased only by 7.8%Most significant relative increases between 2000 and 2008 in PL, FI, IT, DE and ATIncrease also in matured markets such as UK (18.8%), NL (32.2%) or BE (29.6%)Employment reduction in TAW due to the 2008crisis was much stronger than in overall employment (-17.5% compared to -1.8%)Since 2009 however, the TAW sector againexperienced a growth thatwas stronger than employment growth ingeneral

3National legal and other frameworks of temporary agency work4Temporary agency work is very heterogeneously regulated across EuropeThere are differences in what is regulated for example, whether or not this embraces reasons for using TAW, prohibited sectors, maximum assignment length, or stipulations concerning the employment contract, training and representation rights. Maturity: in nearly half of the EU member states, regulation started only during the last decadeImpact of the European Directive on TAW: Development of a common understanding of temporary work agencies, temporary agency workers, user companies, assignments etc.Defining a legal framework in countries where it hasnt existed so far

Netherlands (1965)Denmark (1968)Ireland (1971)Germany, France (1972)United Kingdom (1973)Belgium (1976)Austria (1988)Portugal (1989)Sweden, Luxembourg (1994)Spain (1994)Italy (1997)Finland, Greece , Hungary, Slovakia (2001) Slovenia, Poland, Romania (2003)Czech Republic, Malta (2004)Latvia (2007)Estonia (2009)Bulgaria, Lithuania (2011)4Profile of tempoary agency workers5GenderRange from quite balanced shares (IT, NL, PL) to high shares of female TAW (UK, FI, DK, SE) and countries characterised by the contrary (DE, AT, BE)AgeYoung people have a high share in TAW, but the share of older workers is increasingSector compositionStrong bias towards manufacturing in countries such as DE, PL, CZ, while in UK, NL or ES more than 50% of temporary agency workers are employed in servicesApart from economic structures also a result of regulation and existence of other more flexible forms of employment contractsTarget groupsIn particular people with a migrant background, long-term unemployed and peopole with a lower qualification/education profileOther aspects:Length of assignments and average duration of contracts with the agencies differs quite significantly - resulting also from regulatory frameworks (synchronisation, part-time/open-ended contracts etc.)Motivation of becoming a TAW worker: spring boarders being the largest single type of agency workers but there are also others that do not look for permanent/direct work (flex-professionals, extra earners, students)

5Industrial relations and collective bargaining6IR mirrors variety and different models in EuropeTwo broad groups may be identified:Social dialogue driven practice: In countries such as the Netherlands, Belgium, France or Italy both employers associations and trade unions are playing an important role in regulating temporary agency work, defining certain minimum standards and payment conditions and levels. Social partners in these countries are involved in dialogue, consultation and bargaining at all relevant levels and have established special funds and other joint institutions of self-regulationMarket driven practice: Experience the practice in other EU countries is characterised by either weak or non-existing structures of dialogue and bargaining at sectoral or cross-sectoral level and much weaker social partners in terms of mandate and representativeness. Here, bargaining at best is taking place at micro/company level and working conditions and labour standards are mainly driven by legal minimum standardsThis division is also reflected in the general picture of industrial relations and collective bargaining where two broad groups exist:

Countries, where employers organisations of the TAW sector are involved in collective bargaining (11 countries)Only TAW employer associations in place without a bargaining mandate (15 countries)Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Spain, SwedenBulgaria, Czech Republic, Cyprus, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Slovenia, United Kingdom6Temporary agency work and transitions in the labour market7EU Directive:(TAW) contributes to job creation and toparticipation and integration in the labourmarketTemporary agency work as a bridge and/or a stepping stone

Problems and difficultiesMethodical problems: often control groups are missing; control of different variables and determinantsStudies based on large samples/data sources exist in all countries but mainly from a descriptive perspectiveA large number of surveys are based on smaller numbers of interviews amongst temporary agency workers, agencies and user companiesAs comparative data/studies dont exist, it is not possible to quantify stepping-stone effects for an aggregated sample of EU countries

7Temporary agency work and transitions from unemployment to work8High proportion of formerly unemployed as well as people without any previous professional experience (e.g. in FR or BE around 40%, in Germany more than 60%) illustrate the important role of TAW in regard to transitions from unemployment to workA growing share of people enter the labour market from unemployment or for the first time via temporary agency work in NL or BE around 30% of formerly unemployed persons find a job via temporary agency workStudies based on larger statistical analysis confirm bridging effect of temporary agency work, but in most cases are descriptive studies based on timing of events surveys, i.e. describing the share of formerly unemployed persons that find work through TAW and stay in work for a longer period of timeOnly few studies have tried to estimate a net effect of the stepping-stone/bridging function by comparing unemployed who returned to work via TAW with the path of those who took alternative routes back into workThe results of these surveys illustrate either no significant difference (NL study based on CWI data 2001 - 2005) or a slightly positive effect (DE study based on statistics of the federal labour agency) in comparison to other routesDue to methodical differences, the results are not comparable

8Temporary agency work and transitions into permanent employment9

Source: Ronald Dekker/Hester Houwing/Lian Ksers: Van flexibel naar vast? De doorstroom naar vast werk van een groeiende groep flexwerkers, CBS, Den Haag, 2011Stepping stone effect of temporary agency work is an issue of debate in employment policy reform as well as between social partnersVarious research confirms that there is a stepping-stone effectStudies come to quite different results regarding adhesive effects (both at user companies as well as in other direct employment), e.g. Germany 7-12% (1st half of 2008)Belgium study (covering 2005 2008): insertion rates of 30% (after one year), 41% (after two years) and 55% (after three years)

A type of research that wouldbe needed more:A Dutch study based on LFSdata (1996 2010) addressedthe question what formof flexible employmentoffers the best prospects forpermanent employmentMore longitudinal studiesillustrate that stepping-stoneeffects vary significantlydepending on the labour marketsituation

9Temporary agency work and transitions from education into work10Young people (including those in education) are an important and sometimes the most important age group within the TAW workforceShare of under 25 years old is high in NL (46%) and BE (37%); in FR, IT and DE are more than 40% are younger than 30 years oldTAW a more and more important entry into the first job: In France in 2010, 84% of those under 25 years entering the labour market via TAW have never worked before; in Germany, 10% of those entering the labour market for the first time in 2011 did so via TAW; Only few research studies has compared the trajectories of young people within TAW with those choosing alternative waysCertain groups of young people rely much more on temporary agency work than others as an entry channel into work and find it easier or more difficult to make further transitionsFor young professionals temporary agency work may be an attractive way to gain work experience