Figure 16 Agency work does not substitute permanent work Almost two thirds of user organizations would not have created jobs if they had no access to agency work CONCLUSIONS ALTERNATIVES TO AGENCY WORK % of responses (total = 101) 100 62% of the cases there would be no job creation as 80 companies chose internal or not to do the work C 60 Not do the work 100% 40 20 No job creation (62%) 0 Total 12% 54% Other external solution No substitution (74%) Internal solution 26% Hire permanent 8% workers Source: User organization survey, BCG analysis PRIVATE EMPLOYMENT SERVICES CREATE MORE JOB OPTIONS WITHOUT SUBSTITUTING PERMANENT CONTRACTS The private employment services industry is an engine of job creation. In the USA, private em- ployment services provided 401,000 jobs in 2010, the largest annual growth posted since 1994. Meanwhile in Europe, since the low point of the economic crisis in 2009, the sector has so far provided at least 900,000 new jobs on top of the 3 million agency workers that have remained employed throughout the downturn. This builds on the performance during the period from 2002 to 2007 when 1.3 million new jobs were created by the industry. Private employment services are an engine of job creation and help to boost employment by turning available work into jobs. The sector creates jobs that otherwise
Figure 16 Agency work does not substitute permanent work Almost two thirds of user organizations would not have created jobs if they had no access to agency work ALTERNATIVES TO AGENCY WORK CONCLUSIONS % of responses (total = 101) 100 80 60 100% 40 20 0 Total 54% Internal solution 8% Not do the work No job creation (62%) 12% Other external solution No substitution (74%) 26% Hire permanent workers 62% of the cases there would be no job creation as companies chose internal or not to do the work Source: User organization survey, BCG analysis PRIVATE EMPLOYMENT SERVICES CREATE MORE JOB OPTIONS WITHOUT SUBSTITUTING PERMANENT CONTRACTS The private employment services industry is an engine of job creation. In the USA, private em- ployment services provided 401,000 jobs in 2010, the largest annual growth posted since 1994. Meanwhile in Europe, since the low point of the economic crisis in 2009, the sector has so far provided at least 900,000 new jobs on top of the 3 million agency workers that have remained employed throughout the downturn. This builds on the performance during the period from 2002 to 2007 when 1.3 million new jobs were created by the industry. Private employment services are an engine of job creation and help to boost employment by turning available work into jobs. The sector creates jobs that otherwise C