Decrease in Temporary Work Hours

This article was last updated on January 23, 2024

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Significant Drop in Temporary Work Hours

Data from the trade organization ABU indicates a marked shift in the engagement of temporary workers in 2023. A notable drop of 14 percent was recorded in the total hours worked by temporary staff. It’s projected that this prevailing trend of diminished temporary work hours will extend into 2024.

Temp Work Decrease Cuts Across All Sectors

The dip in temporary work hours was not restricted to any particular industry but was a phenomenon that rippled across all employment sectors. However, some sectors reported a more drastic reduction than others. In the administrative sector, temporary employees worked almost a quarter fewer hours in 2023 than in the previous year. The industrial and technological sectors also recorded declines, with 9 and 10 percent respectively.

Temporary Employment Agencies Suffer Less Decline

In spite of the drop in temporary work hours, the revenue of temporary employment agencies did not experience a comparable plummet. In fact, the drop was remarkably less significant; these agencies reported only a 2 percent decline in their total turnover compared to the previous year. The industry as a whole mirrored this, also marking a 2 percent annual decrease in total turnover.

Labor Market Tightness Impacting Temporary Employment

The current state of the labor market also contributes to this decrease in temporary work hours, as explained by a spokesperson from ABU. According to them, the tightness of the market means employers are more likely to offer prospective employees permanent contracts, eliminating the need for hiring temporary staff.

A Continuing Trend from Previous Years

The use of temporary staff in 2022 was also down from previous years, with a 6 percent decrease in temporary work hours recorded. This is a noticeable shift from the 15 percent increase seen in 2021. Yet, it’s important to note that the boost seen in 2021 significantly resulted from recovery effects following the COVID-19 pandemic that had disrupted the economy in the previous year. The trend of decreasing hours worked by temporary employees is therefore clear, extending from 2022 into 2023, and predicted to continue into 2024.