02 May 2023

The number of agency workers in the Swiss temporary staffing sector fell by 5.0% in March 2023, when compared to March 2022, according to Swiss Staffing. At the same time, the number of working hours also fell by 3.9% over the year in March 2023.

Swiss Staffing figures also showed that the number of assignments in the temporary staffing sector decreased by 4.2% over the year.

Meanwhile the permanent market saw the number of placements increase year-on-year by 14.3% while turnover in the permanent market rose by 9.4% over the year.

Overall, first quarter figures showed that the number of hours worked in Q1 2023 against Q1 2022 fell by 3.4%. The number of agency workers fell by 4.8% in Q1 2023 against Q1 2022 while the number of assignments also fell by 3.1%

As for the number of permanent placements in the first quarter, this figure rose by 12.8% when compared to Q1 2022. Q1 turnover increased over the year by 15.3%.

According to Swiss Staffing, labour shortages are increasingly putting the brakes on growth for staffing service providers, and for the economy as a whole.

“Firstly, the faltering economy and the normalisation following the Covid-19 crisis mean that companies are experiencing fewer short-term peaks in orders that need to be covered by temporary workers,” Swiss Staffing stated. “And secondly, companies that are still seeing good business levels are increasingly turning to permanent positions because the market has become more predictable and in order to increase employee loyalty.”

Looking ahead, Swiss Staffing said the ‘tense labour market situation is worrying staffing service providers.’

“Looking ahead to the next six months, 46.8% expect to see an increase in business activity in the temporary staffing sector,” Swiss Staffing stated. “32.5% also expect the permanent staffing sector to see a further increase. For comparison, in Q1 2022 these values were 70% and 54%, respectively. The parched labour market and lack of economic momentum are most likely the main reasons why managers feel this way. One element that could have a positive impact on business growth is the fact that employees are using the good labour market situation to change jobs or deliberately opt for flexible working models such as temporary work.”