'Corona jobs' help broadcasters through crisis

Many business service providers have now found their rhythm in the new reality. Temporary workers and security guards are deployed in abundance at testing and puncture sites and cleaners in hospitals. As a result, the drop in demand is less severe than in 2020 but still significant. It is only in the second half of the year that the entire sector benefits from the pick-up in economy.

Staffing industry gets off to a flying start

The staffing industry got off to a flying start in the first month of this year. Despite the lockdown, the number of temp hours increased compared to the same period last year. Administrative temp jobs in particular grew explosively. This growth is somewhat distorted by the fact that last January the Law Labor Market in Balance (WAB) took effect, causing a sharp drop in the number of staffing hours that month. That said, this growth is confirmation that the staffing market is recovering. This recovery was sustained in the fourth quarter of started last year and is continuing vigorously. The increase is all the more striking given that the Netherlands is currently in the midst of its second lockdown and there was no trouble during this period last year. This growth is in stark contrast to how the staffing industry felt the lockdown last year.

Shift of work

That the number of temp hours recovered in recent months has several reasons. First, there has been a shift in the type of temp jobs. Despite the lockdown, there is plenty of work, but not in all traditional staffing sectors. By placing temporary workers in places where demand has increased, such as call centers, puncture sites, test lines and distribution centers, the industry has now picked up. Also, the industry, well for nearly a quarter of the temp jobs, full order books. Also, the demand for temporary medical personnel has increased sharply. The second explanation for this growth is that the staffing industry currently benefiting from wider labor market. In January from last year was this very different. The labor market was extremely tight then, making it difficult to find temporary staff. For this reason, the number of agency hours was already before the outbreak of the corona crisis declining.

Favorable outlook

The outlook for broadcasters are positive for the second half of the year, when the coronagraph restrictions are largely phased out. Temporary jobs will then shift again to more traditional staffing sectors. The industry also then benefits from the macroeconomic outlook. With high unemployment, wider labor market and economic growth above 2 percent, this is a good starting situation for broadcasters. In the uncertain aftermath of the corona crisis prefer workers mostly flexible labor over permanent. This leads to a growth forecast of 6 percent. While this is substantial growth, it does not mean that the industry has yet returned to the level from before the corona crisis.

Challenges

Although the industry is benefiting from economic growth, there are structural challenges. For example, automation is decreasing the number of jobs for which low-skill skills are sufficient. These are the jobs where the staffing industry has traditionally focused heavily on. Also, within the flexible shell, the share of temporary workers is decreasing in favor of temporary employment contracts and self-employed workers. In the process, online platforms are increasingly competing with the staffing industry. Last year, the Borstlap Committee made recommendations that should lead to greater protection of flexible employment relationships. There is also a desire to reduce the difference between permanent and flexible labor. Specifically for temporary workers, it is recommended that the temporary employment clause be substantially shortened. This will prevent the use of temporary workers on a structural basis. It is still uncertain which recommendation the new cabinet will adopt. But that the flex industry will have to deal with new rules of play seems inevitable.