The trend of temporary jobs is still rising in Germany. In Germany´s capital Berlin, the number of temporary workers has been doubled in the last decade. Around 25.000 people are working for a temporary working agency and numbers are rising.
To understand the problematic of this topic it is important to know how these temporary working agencies work. People can apply for jobs at this agencies and in case that a contact is successfully made companies pay a defined percentage of the employee´s salary to the agency. In most cases that percentage is very high.
In many debates in television and other forums experts criticize this new form of employment which is not really useful for general reforms in the German and also the European labour market. That could jeopardize the job market especially in the service sector. Especially the low-wage sector is one of the main target branches of temporary working agencies. This sector is growing but it is also one of the first sector where many jobs are cancelled in case of a crisis. Due to low wages it´s hard to reach a high development in these sectors of companies. Companies need this sector but try to avoid the extra costs which rise in case of a crisis. Therefore, it´s interesting for companies to outsource these sectors to temporary working agencies.
Specially trade unions criticize these forms of employment because employees simply have less rights and just a small security.
One reason why mini-jobs, fixed-term contracts and temporary work are increasing is the strict employment protection in Germany. In comparison to other countries worldwide, the number of temporary employment in Germany is relatively small. Only 1,6 percent of all hours worked in Germany are provided by temporary workers. Time work is one of the flexible buffers in the industry and should not be limited in general. However, temporary jobs often split workers of a company between edge and core staff. To reduce this gap between temporarily and permanently employed workers a better security coverage should be introduced.