Agency Temp demand nosedives. Then soars!

In most downturns, we can rely on temporary and contract demand to hold up better than permanent hiring.

Indeed, we usually see it come back much earlier than permanent.

My experience is you can grow a robust Temp/Contract business long before the recession is officially over.

The figures from JobAdder showing temporary & contract demand over the past year illustrate how this Covid recession was different, yet also similar. Temporary demand fell dramatically in Quarter 2, 2020. Australia 23.2 % and New Zealand a stunning 37.2 %.

This is where it was different. Such a fast, deep drop is nothing I have seen before in the Temp/Contract market.

The recovery was swift too, although it’s fascinating to note that Quarter 3 job recovery was different in NZ compared to Australia. New Zealand saw Temp and Contract bounce back fast and steep (44.4%) while permanent hiring was comparatively tame 21.8% (Still significant though).

Australia, on the other hand, saw an inverted demand. Permanent jumped back the most in Quarter 3 (46.1%), and Temp Contract in Australia was slightly less buoyant (34.6%)

The year-on-year figures for Quarter 4 are fascinating. In Quarter 4 2020, Australia temp placements made by JobAdder customers were 20.3% up on Quarter 4 2019.

This is clear evidence of a post – Covid temp bounce-back. Clients saw their own businesses recover and hired contactors in response. New Zealand, on the other hand, is only 2.9% up on 2019. An excellent position to be in, but not as dramatic a bounce back as across the Tasman.

Countries in Europe and elsewhere, suffering ongoing lockdowns, but looking at post covid landscape, might take heart from these numbers.

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