Further increase hours worked in temp jobs

Adjusted for seasonal variation, the total amount of hours worked in temp jobs increased by 0.8 percent in the second quarter of 2014 relative to the preceding quarter. According to Statistics Netherlands, the amount of hours worked in temp jobs has grown since the second quarter of 2013. This is mainly due to a higher demand for  flexible jobs. Statistics Netherlands announced earlier that the number of temp jobs has increased as a result of the growing demand for temp workers. The labour market also shows other signs of  improvement.

Hours worked in temp jobs

Secondment and pay rolling make job market more flexible

The increase of the total amount of hours worked in temp jobs is due to an increase of the amount of long-term temporary contracts, e.g. secondment and pay rolling. The number of these types of contracts has risen for quite some time now and has never been as high as in the second quarter of this year. The increase in the amount of hours in long-term temporary contracts is consistent with the downward trend in permanent employment contracts. More and more permanent employment contracts are converted into long-term temporary employment contracts.

Young people have flexible employment contracts

The average number of temp workers over 2013 was 196 thousand. With a share of more than 60 percent, young people under the age of 35 constitute the largest group, but within this age category, various developments can be observed. The share of young adults aged between 25 and 35 has grown in recent years, while the share of young people under 25 has fallen. When economic conditions are poor, it is difficult for 15 to 25-year-olds to find work. Therefore, many choose to continue studying.

Older people also work more often in temp jobs. The number of temp workers in the 55-64 age category has grown for more than ten years now.

Temp workers by age

Labour market shows signs of recovery

Usually, an increase in the amount of hours worked in temp jobs is one of the first signs of a recovering labour market. The labour market also shows other improvements. The number of job vacancies grew further in the second quarter and unemployment fell for the third consecutive quarter in August. Although the number of employee jobs still declined in the second quarter, the decline is less substantial.

For more information on economic indicators, the reader is referred to the Economic Monitor.