Use of temp workers continues to increase

Demand highest in social sector and construction

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The use of workers hired through temp agencies continues to increase in Finland.
      According to a study by the Private Employment Agencies Association, more than half of member organisations expected between 10 and 30 percent growth in the next 12 months. This is slightly less than in 2004-2005, when turnover in the field surged as much as 35 percent.
      During the period when Estonian citizens were not freely allowed onto the Finnish labour market in spite of Estonia's European Union membership, temp agencies were used as a way to circumvent the rule; Estonians nominally working for Estonian temp agencies were allowed to work for companies in Finland who paid the agencies for their services. Although the interim period ended at the beginning of May, the companies appear to be here to stay.
     
Turnover for the association's members is greatest in office work and financial administration, as well as in the hotel, restaurant, and food service sectors.
      Greatest expectations for growth next year are in health care and social services, construction, and the metals industry.
      Merru Tuliara, the managing director of the Private Employment Agencies Association, attributes the surge in popularity of temp agencies to the greater flexibility and competitiveness in the labour market that they offer.
      the association's' chairman Fredrik Karlsson says that the sector can serve as an economic engine when the economy is in a dynamic phase - that is, when old jobs are disappearing, and new ones are emerging.
      "In the future there will be a shortage of labour in an increasing number of sectors. Then clients will be able to focus on their core business, while we concentrate on recruiting employees", Karlsson says.
      Karlsson feels that the system is suitable for fields such as construction, where work has the quality of separate projects. This frees the employee of the need to seek out a new construction site; the "career agent" of the temp organisation takes care of that.
     
Temp work can also be a first step to a career and a steady job. The association estimates that about one in five temp work arrangements eventually lead to long term employment in the company using the agencies' services.
      Last year work provided through private employment agencies added up to 19,000 man work years. The figures include the employees of the temp agencies themselves.
      Finland has about ten large personnel service companies, which account for about 75 percent of turnover in the field. The total turnover last year was EUR 650 million. More than 90 percent of companies in the field are small, with fewer than five employees.
     
The Private Employment Agencies Association would like to improve the reputation of the business. It has come up with a new set of operating principles, and clarified contractual terms, putting more weight on factors such as job security and fair treatment of the employees.
      "As the threshold to enter the business is low, there can be some ignorance in the smaller companies. The greatest problems emerge from labour contracts, which are not always easy to interpret", Tuliara says.
      In March, an ethical council was set up for the field to resolve possible disputes. So far there have not been any.


Previously in HS International Edition:
  Finland does not anticipate huge influx of Estonian labour after May 1st (24.4.2006)
  Fewer Estonians hired directly by Finnish companies (17.9.2004)
  Loophole allows Estonians to work in Finland immediately after EU membership (5.4.2004)

Links:
  Private Employment Agencies Association

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