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Increase in temporary work – what consequences

In this article we will learn all about the increase in temporary work, as well as understand what impact it can have for workers.

Temporary work in Portugal continues to represent an important part of the general panorama of the labor market. Recent data point to a paradigm that seems to be gaining prominence: the increase in temporary workwhich seems to be a resource used by many workers and businesses.

The temporary work sector continues to play an important role in market placement, dedicated to workers who have specific constraints that do not allow them to find jobs easily, such as those with lower academic qualifications or older age groups. But not only, also to suppress specific needs of certain sectors.

We will try to analyze the recent data on this type of work, and understand what impact this could have on the economy in Portugal, on the labor market and on workers in general.

For many, temporary work will continue to be a possible bridge to a permanent employment contract, while for others it will be another job opportunity, with all the positive and negative characteristics that a job can bring, regardless of its duration period.

Role of increased temporary work in unemployment

For the unemployed, some argue that there are clear benefits of resorting to temporary work. The existence of this type of jobs allows those who are unemployed to obtain a temporary occupation, instead of having no occupation, which will give them more experience, more resources.

But temporary work should not always be seen as a necessary evil – on the contrary, it increasingly seems to be seen as a good opportunity to enrich the curriculum, or to fill a vacation from another job.

After a somewhat dark period, which started in 2020, due to the COVID-19 pandemic, it seems that the temporary work sector has been recovering ground, with a positive evolution.

The first data to be analysed, which emerges as a result of a study by APESPE-RH (Portuguese Association of Companies in the Private Employment and Human Resources Sector) and ISCTE (Instituto Universitário de Lisboa), is what shows us clearly there was an increase in temporary jobs in the second quarter.

After the temporary work index has progressively declined since May 2021, what is certain is that since the beginning of this year 2022 the values ​​started to rise gradually. In April it was 1.09, in May it was 1.10 and in June it was 1.14.

In comparison with the same period of the previous year, the increase is 11.1%, which translates into an increase of 103,152 workers.

Despite growth compared to the last two years, these values ​​are -9.6% below the figures for the 2nd quarter of 2019 (114,150).

The rights of those who have a temporary work contract

Temporary workers have the same benefits as permanent employees – the same number of vacation days or the same food allowance, for example.

For their part, companies hire people temporarily for many reasons, including the following:

  • Covering long-term absences (maternity leave, sick leave, extended vacation…)
  • Temporary increase in activity (new product launch, an audit, year-end processes or even the implementation of new legislation and regulations?

Temporary work and managing the balance of work time with family time

Perhaps this is one of the biggest benefits of temp work. The possibility of combining family time with working time in a more harmonious way is very valuable for many workers.

This, of course, if the typical instability that such a job can cause does not affect family life. Just think that many people wait to start a family and have a home of their own after having a secure, stable, full-time job.

Contribution of the increase in temporary work to the economy

It can be considered that perhaps the greatest contribution of the increase in temporary work to the economy is the possibility that it offers to hire a large number of workers with low qualification levels, as is the case of those who have only basic education.

The benefit of increased temporary work for employers

It is important to bear in mind that companies benefit from temporary contracts, in the sense that they are normally exempt from redundancy costs, which is the case with open-ended contracts.

On the other hand, it is assumed that a temporary worker can hardly be equated with permanent employees, in terms of experience and know how, which can be a constant impediment for your work to be developed in the best way or even recognized.

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