UK top of Spanish workers relocation list

With unemployment in the country rising rapidly, a recent survey has found that 69% of the Spanish workforce is willing to relocate to find jobs.

This week, joblessness in the country hit a record high of 5.64 million, putting the rate of unemployment at just below a quarter (24.4%)

Half (52%) of those surveyed would prefer to relocate within Spin, to larger cities where employment prospects are more positive – such as Madrid or Barcelona. However, 20% of those surveyed would move to other parts of Europe for work. Perhaps unsurprisingly, top of the list of preferred destinations was Germany and the UK.

Other results showed that 3% would choose to move to countries outside the EU and 4% would consider moving to Latin America or a similar destination with an emerging market.

The desperate state of the jobs market in the country is exposed by the fact that a fifth of people surveyed said moving abroad poses no problems, provided they have secured work.

Find out more about contingent workforces in the country in our blog post Spain and temporary agency workers.

Europe week: Germany and temporary agency workers

Germany is being praised for playing a large part in the Eurozone avoiding recession today with stronger-than-expected growth. The country has been one of the better countries in recovery from the economic crisis of the last four years; however, temporary agency labour is a hotly contested topic in the country and has been the cause of a number of recent political clashes.

Despite record unemployment levels in the Eurozone, the jobless rate in Germany is remaining stable. In fact, in the final quarter of 2011 the employment rate was at a 20-year high. In February this year there were just 750,000 temps in the country; despite this the CEO of Adecco has claimed that temporary agency workers in the country could double by 2020.

Problems for the contingent market in Germany are ever-present and range from issues at ground level, right up to confliction politically…

Employment agencies and unions sat down in February this year to debate wages in the electrical and metal sector. Although the country has introduced a minimum wage for temporary agency workers, many believe they are still grossly underpaid. The debate failed to reach a conclusion and has since happened again, still resulting in no agreement.

The introduction of that minimum wage for temps is said to have increased illegal employment levels, according to the Institute for Applied Economic Research (IAW). They claim the rule has increased the percentage of illegal employment as “it makes regular employment more expensive.”

Onlookers have regularly criticised the market over the last six months: In March the German Labour Minister Ursula von der Leyen strongly criticised malpractices in the temporary staffing industry. She said that temporary work “creates flexibility in the short term… but it should not lower wages in the long term.” In the same month the opposition party branded temporary workers as “2nd class employees”.

It’s a difficult time for temporary agency workers in Germany and no doubt today’s news of strong GDP figures in the country will promote yet more growth and jobs. Whether they will be temporary positions is yet to be seen.

You may also be interested in our blog “What can the UK learn from the German temp shortage?”

What can the UK learn from the German temp shortage?

Despite being affected by the Eurozone crisis, Germany has seen a more rapid recovery from recent economical issues than most of Europe. However, that could be threatened in part due to a lack of temporary agency workers. In an interview with Staffing Industry Analyst, Dr Alexander Spermann, Director of Talent management Flexworker & Public Affairs at Randstad Germany said:

“These days it takes longer to find the right candidate because it is more difficult to find temporary agency workers who have got the skills that are needed on the labour market – not only with respect to high-qualified jobs but also to low-qualified ones.”

With temporary agency labour a significant component in market recovery, Germany’s jobs growth could be about to decelerate.

So, as the UK lags behind in economic recovery, what can businesses learn from the Germans’ labour market issues?

1. Uncertainty promotes the use of temps

As the UK continues its delicate recovery business confidence is wobbly. Whilst business leaders and hirers remain cautiously optimistic when it comes to permanent hires, flexible, temporary workforces are an ideal way of responding to market fluctuations without commitments.

It’s worth noting that recent Office of National Statistics figures show UK business confidence is stalling.

2. Identify skills shortages early

Temps are an ideal way to fill skills gaps, but if you have that void in knowledge it’s unlikely that you’re the only business with the problem. Forecasting for growth or decline and identifying areas of your business which are likely to be affected by skills shortages will ensure you can implement procedures and processes for dealing with these issues. Engaging with the right supplying agencies early will help to identify just how bad the problem is likely to be, if training is going to be necessary and just how long it will take to employ a temporary agency worker with the skills required.

3. Give temporary agency work the right PR

Temporary agency work has long been something to be sniffed at. Once seen as a domain purely for clerical and administrative work it is now a viable option for workers and over recent years there has been a rise in ‘career temps’. However, to ensure the candidate pool remains fresh and varied, temporary agency work as a choice must be given the right publicity. Recent comments in Germany suggested that temporary agency workers are “2^nd class employees”  and the Opposition party has openly spoke of ‘forbidding’ temporary positions. Add to that a report today that temps are paid half as much as permanent staff in Germany; it’s easy to understand why temporary agency work is not viewed as a long-term option.

The implementation of the Agency Workers Regulations in the UK has seen the temporary arena receiving some bad press, although nothing in the same league as in Germany. UK PLC must ensure that temping is promoted correctly and that those coming into the jobs market are aware of all routes to work.