Recent developments in temporary employment: Employment growth, wages and transitions

Temporary employment has increased since the 1980s in most European countries as a result of demands for greater flexibility in labour markets and subsequent reforms of employment protection legislation. This report presents a broad picture of temporary employment across the EU27 between 2001 and 2012 based on Eurostat data. It maps the recent evolution of temporary employment, before and after the economic crisis. It calculates the wage gap between temporary and permanent employees and also analyses the wage gap within companies. The report also identifies the main determinants of temporary employment in terms of personal, company and job characteristics and examines the most relevant labour market transitions for temporary employees. The study finds evidence of segmentation in a number of European labour markets, whereby temporary employees have poor pay and labour market prospects, while permanent employees enjoy high levels of job security and opportunities for career progression.