In the third quarter of 2024, the number of employees in the temporary employment agency activities industry was 50,600. Compared to the same quarter in 2023, this represents an increase of approximately 2,000 employees. This increase is mainly due to companies switching their industry classification to temporary employment agency activities. Without these companies entering the industry, there would have been a slight decrease in the number of employees. More on this in the box titled "Consequences of changes in companies included in the temporary employment agency activities industry."
– After a significant decline throughout 2023, the decrease in the number of employees in the temporary employment agency activities industry has not continued at the same rate this year. However, the number of employees is still considerably lower than in 2022, says Christoffer Berge, senior adviser at Statistics Norway.
Compared to the third quarter of 2022, the number of employees was 7,400 lower in the third quarter of 2024, representing a decrease of nearly 13 percent. This decline was less than the decline in the same quarter of 2023.
The tightening of the rules for hiring and leasing labor from staffing agencies was adopted in December 2022, with implementation from April 1, 2023 (regjeringen.no). The transition period for the new rules lasted until July 1, 2023. However, other factors may also have influenced the development. For instance, the temporary employment agency activities is an industry sensitive to economic cycles.
– We cannot determine how much of the changes are due to the regulatory changes or economic cycles, says Christoffer Berge.
Statistics Norway wrote about the developments in 2023 in the article Fewer employees in temporary employment agency activities (only in Norwegian). In this article, we further examine the development in 2024.
The temporary employment agency activities industry (NACE code 78.2) consists of businesses engaged in the leasing of labor. The industry involves supplying workers to client companies for a limited time to supplement the client's workforce, where the workers are employees of the staffing agency. However, agencies classified under this NACE code do not directly supervise their employees at the client's workplace. This means that consultancy services and the hiring of labor between businesses (classified under a different NACE code than 78.2) are not included in the figures for the temporary employment agency activities. This article focuses on individuals whose primary job is in the temporary employment agency activities industry. Persons with multiple jobs, where their side job is in this industry, but their main job is in another industry, are not included in this article for the temporary employment agency activities. This constitutes only a small proportion of the temporary employment agency activities industry.
It is common for some businesses to change their industry classification over time, for example, due to shifts in their activities. Additionally, new businesses are established, and some are discontinued. From the third quarter of 2023 to the third quarter of 2024, businesses entering the temporary employment agency activities industry employed more workers than those exiting the industry. This is largely due to existing businesses changing their industry classification, which has contributed to a higher number of employees in the third quarter of 2024 than would otherwise have been the case. If we only consider businesses that were in the industry during both the third quarter of 2023 and the third quarter of 2024, there would have been a decrease of 900 employees rather than an increase of 2,000. These industry changes are partly related to a quality review conducted by Statistics Norway (SSB) of so-called auxiliary units, which are businesses intended to provide internal services within a company. These units are required to have the same NACE code as the company they serve. As a result of this review, some businesses were no longer defined as auxiliary units, which in turn led to some of them changing industries, including to the temporary employment agency activities. These changes occurred particularly between the 3rd and 4th quarters of 2023. Among the businesses entering the industry, several employing workers in maritime roles, including companies leasing crew to ships and oil-related activities. This led to significant increases in maritime-related professions. For example, ships deck officers and pilots increased by 185% (650 employees), and well drillers and borers and related workers increased by 83% (390 employees). Despite these changes, maritime employment relationships (skatteetaten.no) account only for about 7% of all employees in the temporary employment agency activities industry. Industry changes have also driven growth in typical construction and building occupations within the temporary employment agency activities. There was a 9% increase (830 employees) in the third quarter of 2024 compared to the same period the year before. This growth is largely due to businesses newly entering the industry.
Fewer Employees Leaving Temporary Employment Agency Activities
In the first quarter of 2024, there were 45,800 employees in the temporary employment agency activities industry. Of these, 30,000 or 66% were still employed in the same industry by the third quarter of the same year. In comparison, the proportion was 55% for the same periods in 2023. Also before the regulatory changes, in 2022, the proportion was lower at 61%.
Among the 15,700 people who left the industry between the first and third quarters of 2024, 8,400 switched to another industry, while 7,300 were no longer employed. This represented 18% and 16%, respectively, of the employees in the first quarter. These numbers should be interpreted with caution, as they are not seasonally adjusted.
Of those who were no longer employed, over 42% were non-residents, individuals who likely left the country. 13% were registered as fully unemployed, and the remainder included, among others, people receiving various types of welfare benefits without working.
– A lower proportion of those working in temporary employment agency activities switched to another industry between the first and third quarters of 2024. This has contributed to the fact that the decline seen in 2023 has not continued, says Christoffer Berge.
Between the first and third quarters of 2023, 27% switched to another industry, while just under 19% were no longer employed. In 2024, the primary change was then a decrease in the proportion switching to another industry compared to 2023.
The number of new employees entering temporary employment agency activities between the first and third quarters of 2023 and 2024 was roughly the same (around 20,000 people). However, these new employees now make up a larger proportion of the workforce in 2024, as the industry has become smaller. In 2022, before the regulatory tightening, the number of new employees entering the industry was significantly higher, at nearly 26,000 people.
The composition of employees in 2023 and 2024 is different. There has been a significant decrease in the number of employees, and notably, certain occupational groups, such as those in typical construction and building occupations, have seen a greater decline than others. When the composition of the industry changes, it can, for example, affect the proportion of employees leaving the industry, making a direct comparison of the numbers more challenging.
Most Transition to Health and Social Services
Of those who left the temporary employment agency activities industry in 2024 and continued working in another industry, 21% (1,800 people) transitioned to human health and social work activities. This was followed by manufacturing jobs (13%), wholesale and retail trade (12%), and construction (11%).
This is a shift from the period between the first and third quarters of 2023, when the majority moved to construction. At that time, nearly 23% of those leaving temporary employment agency activities moved into the construction industry.
The most common profession for those who left temporary employment agency activities between the first and third quarters of 2024 was in care and social work. Child care workers were the largest single occupation in this group. In contrast, in 2023, construction workers were the most common occupation for those leaving the industry.
| Occupation | Number | Percentage |
|---|---|---|
| Total | 15 700 | 100 |
| 53 Care and social service workers | 3 460 | 22,0 |
| 71 Construction workers | 1 830 | 11,7 |
| 43 Numerical and material recording clerks | 1 320 | 8,4 |
| 81 Stationary plant and machine operators | 1 020 | 6,5 |
| 41 General and keyboard clerks | 960 | 6,1 |
| 72 Metal, machinery and related trades workers | 830 | 5,3 |
| 93 Labourers in mining, construction, manufacturing and transport | 670 | 4,2 |
| 22 Health professionals | 640 | 4,0 |
| 31 Science and engineering associate professionals | 620 | 3,9 |
| 74 Electrical and electronics trades workers | 510 | 3,2 |
| 33 Business and administration associate professionals | 450 | 2,9 |
| 83 Drivers and mobile plant operators | 370 | 2,4 |
| 23 Teaching professionals | 340 | 2,2 |
| 94 Food preparation assistants | 250 | 1,6 |
| 24 Business and administration professionals | 240 | 1,5 |
| 51 Personal service workers | 230 | 1,5 |
| 91 Cleaners and helpers | 220 | 1,4 |
| Other occupations | 1 780 | 11,3 |
In this article, typical construction and building occupations are considered to be those related to the occupation group 71 Construction Workers. This includes masons, carpenters and joiners, plumbers, painters, building fitters. Additionally, the following specific 4-digit occupations are included: 1323 Construction managers 3123 Construction supervisors 7411 Building and related electricians 7542 Shotfirers and blasters 8342 Earthmoving and related plant operators 9313 Building construction labourers 9312 Civil engineering labourers A large proportion of employees in these occupations, across all industries and not just in temporary employment agency activities, work in construction and building. However, it's important to note that some of these workers might be employed in other industries as well, so the number of those with typical construction and building occupations might be somewhat overestimated.
Many Who Left Temporary Employment Continued in Permanent Positions
In the temporary employment agency activities industry, the share of employees with permanent positions has remained relatively stable at around 75% since 2021, the first year Statistics Norway (SSB) had data on employment type. This trend continued through 2023 and into 2024.
– Half of those who changed industry away from temporary employment agency activities continued to have a permanent position in the industry they changed to in 2024, says Christoffer Berge.
The proportion was slightly higher between the first and third quarters of 2023, when it was 55%. This combination of type of appointment was the most common in both years.
Additionally, 15% of those who left temporary employment agency activities changed from temporary to permanent position. This is similar to the situation in 2023. In total, 66% of those switching industries changed to a permanent position in the new industry in 2024.
There has been an increase in the proportion of people moving from permanent positions in temporary employment agency activities to temporary positions in the industry they changed into. Between the first and third quarters of 2023, this share was 18%, while it rose to 24% in 2024. However, the number of people moving from permanent to temporary position is lower in 2024 due to fewer people working in the industry compared to 2023.
Many Child Care Workers Moved from Permanent to Temporary Positions
The proportion of people who obtained permanent positions after changing industries varies across different occupations. For example, a large share of those who worked as child care workers had a permanent position in temporary employment agency activities but changed to a temporary position in the industry they moved to. From the first to the third quarter of 2024, this applied to 43% of the individuals in this group.
For those in typical construction and building occupations, 63% had a permanent job in temporary employment agency activities continued with a permanent position in the industry they changed to. This proportion was even higher in 2023, at 74%.
The table below provides an overview of some selected occupations.
| Occupation in temporary employment agency activities in Q1 2024 | Permanent position in both quarters | From permanent to temporary | From temporary to permanent | Temporary postion in both quarters | Other combinations | Number of employees | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total | 50,1 | 23,9 | 15,2 | 7,8 | 3 | 8 410 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction and building occupations | 62,5 | 15,2 | 17,1 | 5 | 0 | 960 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Child care workers | 32,5 | 43,2 | 9,9 | 12,6 | 1,8 | 1 710 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock clerks | 57,4 | 20,7 | 12,6 | 5,6 | 3,8 | 720 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Food and related products machine operators² | 49,3 | 17,0 | 25,8 | 5 | 2,9 | 340 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Includes those with unspecified type of appointment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2Includes production workers in the fish and meat industries. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lower Proportion Left in the Oslo Area
Among those who were no longer employed in the temporary employment agency activities industry in 2024, 6,000 employees, or 39%, had their workplace in the Oslo or the counties that made up Viken (Akershus, Østfold, and Buskerud). In 2023, the corresponding number was nearly 5,000 higher, with 45% of those leaving the industry then based in these counties.
One of the regulatory changes was a ban on hiring employees from staffing agencies at construction sites in Oslo, Viken, and the former Vestfold. In 2023, we saw an increase in the share of individuals who had worked in typical construction and building occupations among those leaving the industry. Additionally, there was a higher percentage who had worked in Oslo and Viken. Among those who left in 2024, there was a decrease in both of these proportions compared to 2023. However, we cannot definitively link this development directly to the regulatory changes. Other factors, such as the trends in the construction industry, may also have played a role.
This article was funded by the Ministry of Labour and Social Inclusion.