Temporary work is indispensable for a flexible labour market

Business flexibility – achieved, amongst other things, through temporary work – helped to shore up the German economy during the pandemic year of 2020. The Federal Government provided support to struggling businesses through short-time working allowances and COVID-19 relief measures. Otherwise, the economic consequences would have been even more severe.

In the first few months of 2021, the economy picked up again; as recently as March, the Economic experts with gross domestic product rising to 3.1 per cent. However, the ifo Institute has now reported a further decline in the ifo Business Climate Index reported, for the second month running. This is due, amongst other things, to the ongoing chip crisis, which is forcing car manufacturers to scale back their production processes.

Recent developments highlight all the more clearly just how important flexibility is for the German economy. Temporary work is the flexible labour market tool that enables a rapid response to peaks and troughs in order volume.

The German economy needs temporary workers

This makes it all the more surprising that policymakers are deliberately excluding temporary work, as seen, for example, in the Occupational Health and Safety Control Act passed at the start of the year or the Skilled Workers Immigration Act, which excludes temporary work. And the short-time working scheme for temporary workers is still not firmly enshrined in law.

What is the aim of the political decision-makers? Is the intention that temporary work should only be used for very short-term assignments, or is it to limit the number of temporary workers? After all, fair pay, contract terms and health and safety at work have been guaranteed in the sector’s collective agreements for years. Integration into the host company’s organisational structure and comprehensive documentation requirements are part of a staffing agency’s day-to-day operations.

It is therefore long overdue for society and the political sphere to recognise the value of temporary work for the labour market and to treat temporary workers with respect. After all, it is they who ensure flexibility in the German economy.