Slump in demand

Temporary employment agency uses crisis for training offensive

Motorcycle manufacturer KTM has been gradually reducing its workforce since December: now another 300 workers have to go.

(Bild: Wenzel Markus)

The temporary employment sector is feeling the full impact of the difficulties in the economy. "We're the first to be hit, but when things pick up again, we'll be the first to benefit," says Hofmann-Personal Managing Director Helmut Herzog. The market leader is responding to the slump in demand with a further training offensive.

An austerity package at automotive supplier Stiwa means that employees with a promise of re-employment are temporarily laid off; at motorcycle manufacturer KTM, 300 workers have to leave as part of the far-reaching restructuring - two current examples of how much pressure domestic companies have come under.

A dampened consumer mood, a flood of exports from China and upheavals in individual sectors - it is a mix of several factors that have caused the economic engine to stall. Staff leasing companies are feeling the consequences enormously: from more than 100,000 employees across Austria in autumn 2022, the number of temporary workers fell to around 78,300 in October 2024.

Helmut Herzog, Managing Director at Hofmann Personal.

(Bild: Wenzel Markus)

"Of course, situations like the one at VW have an impact," says Helmut Herzog, Managing Director of Hofmann Personal Austria, referring to the German car manufacturer, which is planning to close plants and whose crisis is also shaking up the supplier industry.

Focus on e-mobility
Hofmann Personal is the industry market leader in Austria and has around 3200 temporary workers. The company, headquartered in St. Florian near Linz, is also using the crisis as an opportunity to train its employees. "We are also taking educational leave ourselves and are now increasingly focusing on preparing our employees for e-mobility," says Herzog.

Nevertheless, the current situation is leaving its mark: "We have suffered losses, but 2024 is still a good year," he emphasizes. His outlook for the future? "We hope that things will pick up again in the middle of next year or in the fall."