Creating jobs
It is forecast that the HR services industry could create 1.6 million new jobs in Europe alone between 2007 and 2012. The industry already created 300,000 jobs across six European countries between 2003 and 2005.
Research has shown that there is very little substitution of temporary jobs for permanent jobs (only 15%); but 80% of jobs created by our industry would not otherwise have existed at all ("More Work Opportunities for More People", page 14).
Harvard’s Lawrence Katz and Princeton’s Alan Krueger have calculated that the HR services industry was responsible for a 40% reduction in US unemployment in the 1990s.
Reinforcing social cohesion
Private employment agencies reinforce social cohesion: they open access to the labour market for the long-term unemployed, older workers, ethnic minorities and disabled people, thus increasing labour market participation and diversity.
For instance, in the Netherlands, between 20% and 28% of temporary agency workers from these groups found a permanent job through temporary agency work (average for 2001–2004). In 2006, these groups accounted for 197,000 workers or 27% of the Dutch temporary work market (Source: "More Work Opportunities for More People").
Agency work helps reduce illegal work – Case Study, Italy
In Italy, temporary agency work (TAW) was legally recognised in the 1997 “Treu package”. The next major changes took place in 2000, with the opening up of the agriculture, construction and public administration sectors to TAW. Finally, in 2003, the Biagi law increased the flexibility of the labour market and helped liberalise TAW. These legislative changes and the increasing flexibility of the labour market had a positive impact on reducing undeclared work.
A study by the Italian National Institute of Statistics in 2005 showed a 2% decrease in the undeclared work market between 2001 and 2004. TAW played a key role in this achievement by bringing thousands of immigrants to the labour market who had previously been employed illegally.