And so the 1st October 2011 came and went and the world of agency working didn’t stop spinning. For those of us that are heavily involved in the supply of temporary agency workers, 1st October 2011 was a date that we viewed with a mixture of fear and excitement.
Impact of the Agency Workers Regulations on Facilities Management
As a sector, Facilities Management has seen a small growth in the industry. Due to harsh economic conditions, companies are looking to focus their attention to core activities rather than deal with the demands of FM. As a result, outsourcing is expected to increase in the future.
Impact of the Agency Workers Regulations on the Manufacturing sector
In terms of the temporary labour usage in 2011, this is similar to 2010. This has peaked in May, which again may be due to seasonal fluctuations. The CBI trends survey in June confirmed that 27% of manufacturers describe total orders as above normal, while 26% said they were below normal. The resulting balance of +1% is far above the long-term average (-18%).
Impact of the Agency Workers Regulations on the Care Sector
The Care sector is struggling in terms of its temporary labour usage, due to harsh economic conditions like so many other industry sectors; they have come under pressure to reduce costs and maintain their competitive advantage.
Impact of the Agency Workers Regulations on the Construction Sector
The construction industry is beginning to strengthen. Clearly as the sector grows, usage of temporary staff will increase. This is forecasted to gradually amplify over the forthcoming months. Sarah Ledger, author from construction PMI said “"the June UK construction PMI data signalled another strong increase in activity”.
Impact of the Agency Workers Regulations on the Waste Management sector
The Waste Management sector has been very sporadic in terms of temporary agency usage. This relates to the industry’s need for investment, as it remains a sector that has potential for growth opportunities. The EAEM Association quoted “Investing £1 billion in waste infrastructure like recycling and waste-to-energy plants could create four times more jobs and save more carbon emissions”.
Impact of the Agency Workers Regulations on the Retail sector
The Retail sector is struggling in terms of smaller shops closing down. Figures to be published by the British Independent Retailers Association will show that although the rapid rate of decline over the past two years has begun to slow, the estimated 330,000 stores operated by family firms and small businesses are still closing at a faster rate than shops are opening.
Despite this, spending on temporary agency labour within retail is beginning to increase in comparison to 2010.
Impact of the Agency Workers Regulations on the Logistics sector
The demand for drivers has vastly increased since 2010, which explains the increase of usage as shown below. Drivers hold the majority of temporary worker usage in the Logistics sector and subsequently if their demand increases then growth in the temporary agency market will also increase.
Agency Worker Regulations Impact Assessment Results
