1. The role of private employment agencies in a changing labour market
Annemarie Muntz, Eurociett President
ASSOLAVORO Workshop 9 November 2011 Rome

2. About Eurociett
Eurociett represents 35,000 companies (50,000 branches), employs 230,000 internal staff and more than 3 million agency workers on a daily average (full time equivalents) and around 9 million a yearly basis (headcounts)
Eurociett is the only association representing agency work:
At large: brings together 30 national federations
In its diversity: uniting 7 of the largest multinational staffing companies as well as tens of thousands of SMEs
Eurociett represent the following HR activities: temporary agency work, recruitment, interim management, executive search, outplacement, training
Is the only authoritative voice representing the interests of agency work businesses in Europe:
Accounts for more than 90% of the total sales revenues of the industry
Recognised as such by the EU Institutions as well as by key European stakeholders (e.g. ETUC, BUSINESSEUROPE, social NGOs, think tanks)
Is the employers’ official social partner within the EU sectoral social dialogue on temporary agency work (facing UNI-Europa)

3. The new reality of labour markets
Fundamental changes...
Globalisation
Volatility
Demographic evolution
Sectoral shifts
New attitudes to work
...pose new challenges
Persistent high level of unemployment (Italy 8.2%, EU %)
Segmentation in the labour market
Increasing mismatch between supply and demand of skills
Unpredictability and lack of visibility
Blurring the lines of employment forms (multiactivity)

4. How private employment agencies can help
Governments
Reducing unemployment and increase labour market participation
PrEAs drive job creation even with low levels of GDP
Better implementation of active labour market policies
Alleviating pressure on social protection by bringing more people to (legal) work
Workers
Access point to the labour market
Facilitating transitions from unemployment to work, from one job to the next
Access to training and long-life learning: better skills for labour market needs
Freedom of choice to meet different profiles of workers
Protection of rights
User companies
Offer a flexible labour force that quickly adjust to production needs (seasonal, cyclical)
In times of economic uncertainty, companies can hire more easily thus accelerating economic recovery
Offer sourcing and screening to ensure that companies make the right selection

5. Agency work reduces unemployment and illegal work: the Italian case
PrEAs reduce unemployment and bring more people to the legal economy

6. Maximising the PrEAs contribution
PrEAs have an important role to play in the labour market and they represent a great potential
However, agency work penetration rate still low – in Europe is 1.7% (2010) average, in Italy it is 0.8% (2010, defined in full-time equivalent )
The new report “Adapting to change”, carried out by the Boston Consulting Group and Eurociett analyses the link between regulation and development of the agency work industry
There is need for appropriate regulation to allow PrEAs to contribute to better functioning labour markets

7. Appropriate regulation fosters PrEAs development
The index ranks countries according to how favourable the regulatory environment is to the development of agency work

8. Labour Market Efficiency Index
The report also develops a Labour Market Efficiency Index, which is directly correlated with the overall competitiveness of a country: the report shows that labour markets with higher penetration of agency work are also more efficient

9. Recommendations: lifting unjustified restrictions
The agency work directive must be implemented by 5 December 2011 Governments, together with social partners must make a full review of all restrictions in law and CLAs, together with the social partners by the deadline
All unjustified restrictions on temporary agency work and discriminatory measures related to temporary agency work labour contracts must be lifted.
In Italy, outdated and disproportionate measures include:
Reasons for use
Maximum number of agency workers
Maximum length of assignment

10. Recommendations: updating the relevant regulation
Removing restrictions does not mean eliminating all relevant regulation: licensing and certification systems can still be in place
Appropriate regulation ensures a level playing field and quality of services and prevents rogue providers from operating alongside with the clean industry
For example, well enforced authorisations systems are a valuable instrument to filter out rogue agencies
Appropriate regulation is needed to avoid to mix agency work with other forms of flexibility that are not regulated and are not organised as a sector

11. Flexible work: Let’s look at the big picture!
Agency work
Fixed-term contracts
Subcontracting & outsourcing
Call-on work
Bogus self-employment
Undeclared work
Illegal work