Flex industry in 2025: a little growth

After a tough time with severe contraction, there finally seems to be some movement in the flex industry in 2025. Demand for flex workers is expected to rise by 2% by then. This is not spectacular, but after two lean years, it is a step in the right direction. Still, the challenges for our sector are not mild: we continue to face a structural shortage of staff and stricter laws and regulations do not make the work any easier.

2023 and 2024: contraction in hours

After the growth in broadcasting hours in 2021 and 2022, the industry suffered a big hit in 2023: a fall of 7%. This was the biggest hit since 2009, not counting the corona years. For 2024, we expect another decline. Low economic growth plays a big role in this. Companies are pressing the pause button when it comes to investing or hiring new staff.

Good news is that the flex industry is usually one of the first to benefit from an improving economy. During 2024, demand therefore seems to pick up slightly, which could lead to slight growth in 2025.

Want to know more about the hours and turnover of the staffing industry? ABU Knowledge Bank

Turnover continues to grow, but mainly due to higher rates

Despite less demand for temporary workers, the sector's turnover rose in 2024. How this was possible? Higher rates. The biggest contributing factor for this are increases in the minimum wage and collective agreement increases, as an aftermath of the ongoing inflation we face in the Netherlands.

Read more about minimum wage 2025! Minimum wage rises again in 2025! | Twente Personeelsdiensten Wierden

But higher rates do not mean better margins. Many companies cannot quite pass on the extra costs to their clients. In the middle of 2023, the Phase A has completely changed, which means that employment agencies have to reckon with higher absenteeism costs. Pensions have also changed, with an elimination of the eight-week waiting period for accrual in Phase A.

Staff shortage remains biggest headache

Although demand for temporary workers is decreasing, staff shortages remain our biggest challenge. Half of flex companies notice this. The problem is not only in the number of people available, but also in the mismatch between supply and demand. There are plenty of vacancies, but finding the right staff remains difficult.

On top of that, companies are more willing to give temporary workers contracts, especially in a tight labour market. This causes throughput to stagnate and temp agencies to do less work.

Legislation puts pressure on industry

From 2026, we will all have to comply with the new admission system (Wet toelating terbeschikkingstelling van arbeidskrachten, Wtta). Companies wishing to hire staff will then have to meet stricter requirements, such as depositing a deposit of €100,000. This is meant to counter malafide practices, but it also entails additional costs and bureaucracy. In our view, a positive change, as we have been trying for years to be the safest place to work for international employees.

In addition, politicians want to take measures to curb labour migration. Some 50% of labour migrants work as temporary workers, especially in sectors such as logistics and agriculture and horticulture. Stricter rules for migrants could therefore have a significant impact on our work.

New zzp law may offer opportunities

One bright spot is the possible new law around self-employed workers. If false self-employment is tackled, it could be positive for the flex industry. Especially among migrant workers, self-employment has been popular in recent years. But here too, they are exploited with hourly rates far below the usual rates in the industry.

Work currently done by self-employed workers may then return to temporary and secondment agencies. But when and how this law will be introduced remains uncertain for now.

What's in store for us?

The flex industry has had tough years, and although we cautiously expect some growth in 2025, we will have to continue to work hard. Reforms in the labour market remain necessary, but implementation is delayed.

At Twente Personeelsdiensten, we have shown again over the past year that we can grow even in challenging times. The number of temp hours has increased, and the outlook for 2025 is promising. Our strength lies in competitive, competitive pricing combined with a strong focus on quality. We only work with the best candidates, so that our clients can always count on skilled and motivated workers.

With this approach, we build not only our own success, but also that of our clients. Because in the end, it is about more than growth: it is about cooperation and achieving results. In the flex industry in 2025, we will continue to focus on what we do best: delivering quality, at the right price.