The temp agency market - France

The global temping market, covering temporary employment agencies, has experienced robust growth, poised to expand at a 6% annual rate until 2030, with projections to reach over $800 billion in size. The French temporary market, despite a significant downturn during the Covid-19 pandemic, bounced back, reaching 772,463 temp workers by September 2023 and surpassing pre-pandemic levels with sales totaling €37.2 billion in 2022. Regulations have evolved, notably with the abolition of the maximum assignment duration of 36 months at the end of 2022, ostensibly to encourage use of temporary contracts, especially the CDI intérimaire (permanent temporary employment contract).

Demand in France is primarily driven by the secondary and tertiary sectors, accounting for 36% and 63% of the temp workforce, respectively. On average, there has been a slight reduction in the number of temps, with 1,710,974 recorded in August 2023, down from 1.805 million at the start of the year. The industry has seen a steady increase in both temporary employment agencies and their employees, reaching 22,185 agencies and 576,424 employees by 2022. However, there has been a slight decrease in 2023 with 54950 employees on temporary CDI contracts, a decline of about 1.3% from 2022. This trend reflects a mismatch in the labor market, highlighted by the simultaneous presence of job vacancies and unemployment.

Companies facing recruitment challenges often turn to temping agencies, contributing to the demand in this market. Agencies work to attract and retain workers through various means such as offering training, digital services, and sponsorship systems.

Trends and Analysis of the Temping Market in France

The temping market in France, catering primarily to the secondary and tertiary sectors, displays significant resilience after the unprecedented downturn induced by the Covid-19 pandemic. Notably, the market has observed a marginal variation in the number of temporary workers from the beginning to August of the year. It's fascinating to note that despite slight fluctuations, the overall presence of temporary workers remains relatively consistent, hinting at a stable demand for temp work. 

In contrast, the secondary sector, which includes industry and construction, engages approximately 36% of temps. This demand has specific characteristics as well; a significant majority of these temporary positions are occupied by blue-collar workers. About three-quarters of the temps are from this demographic, with over half possessing skilled qualifications.

The market's structure reflects a trend of modest but continuous growth in the number of temporary employment agencies, with an increase witnessed over the past decade, culminating in over 22,000 agencies by 2022.  A significant development that both temps and employing companies must note is the regulation changes regarding the duration of temp work assignments. Recently, the law capped at 36 months for assignments was abolished, enabling more flexible contract durations and possibly signaling a shift towards more persistent employment opportunities within the temping sphere.

Despite such advancements, the temping market isn't without its challenges. The presence of a mismatch between job supply and demand is illustrated by the rising job vacancy rate, currently at around 2.3%, contrasting with an unemployment rate that doesn't follow the same descending trend. Temporary employment agencies, acting as mediators between companies and workers, play a crucial role in tackling this discrepancy by providing access to a pool of workers ready to fulfill short-term and flexible roles.

In terms of market segmentation, a few industry giants, each generating sales figures well above a billion euros, dominate the landscape. These include recognizable names such as the CRIT Group, Adecco, and Randstad. Meanwhile, a second tier of companies with sales figures under a billion euros carves out significant portions of the market, showcasing the competitive yet varied nature of the temping industry.

Giants and Challengers: Key Players Shaping the Temping Industry Landscape

In the dynamic world of temporary employment, certain agencies stand tall as industry giants with their significant market presence, while others operate as agile challengers that bring diversity and specialized services to the marketplace. Among these influential entities, four main groups have established themselves with remarkable sales figures, reflecting their substantial impact on the temping market.

• CRIT Group emerges as a formidable force, offering a broad array of assignments with a focus on diversity, covering numerous sectors and catering to a wide range of professional needs. Their influential status is not solely due to their size but also their reputation for reliable service and extensive job offerings, positioning them as a leader in the industry.

• Adecco stands out as a global behemoth, operating across various countries and providing a plethora of opportunities for temps. They are known not only for their recruitment capabilities but also for their commitment to training and upskilling, ensuring that the workforce remains competitive and ready to tackle the evolving demands of different industries.

• Manpower Group, another titan in the field, prides itself on its deep understanding of the labor market and its strategic approach to workforce solutions. With a comprehensive suite of services, they cater to both the immediate needs of businesses and the long-term career aspirations of temporary workers.

• Randstad completes the quartet of leading groups, offering innovative and effective staffing solutions. Their approach combines personal touch with technology-driven services, aiming to bridge any gap between employers and the contingent workforce efficiently.

On the other side of the spectrum, we find nimble second-tier companies like Triangle Intérim, known for their bespoke services and capacity to meet specific local demands. They exemplify the agility and customer-centric approach that is characteristic of the smaller players in the market.

• LIP Group carves a niche for itself with a strong focus on sectors such as construction and industry, providing skilled labor where it's most needed, thereby reinforcing the market segment that heavily relies on temporary staffing.

Lastly, Temporis represents the vitality and innovative spirit of the mid-sized agencies. Specializing in offering personalized experiences to both their recruits and client companies, Temporis demonstrates the value of adaptability and tailored services in a market that is as diverse as the workforce it represents.

Together, these market players—both the giants and the challengers—form the backbone of the temping industry, supporting its continued growth and ensuring that it remains responsive to the ever-shifting landscape of work.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 17/11/2023

Summary and extracts

List of charts

• Share of temporary employment in total salaried employment
• Trends in the global temporary employment market
• Sales index for the temporary employment market
• Sales trends in the temporary employment market
• Breakdown of temporary staff by sector
• Share of people employed in different sectors
• Breakdown of temporary staff by qualification
• Breakdown of employees by category
• Number of temporary employment agencies
• Change in the number of employees in temporary employment agencies
• Number of temps by region of user establishment
• Number of temps by region of temporary work establishment
• Average length of temporary assignments by sector of activity
• Trend in average length of temporary assignments
• Average number of temporary employment contracts signed per month, by sector
• Change in temporary CDI workforce
• Change in vacancy rate
• Unemployment rate trend