UK Temporary Staffing: Industry Structure and Evolutionary Dynamics

Abstract

During the 1990s the UK temporary staffing industry experienced almost unbroken year-on-year growth. Alongside this quantitative expansion the type of business performed by some UK temporary staffing agencies has begun to change, as some larger agencies have attempted to move out of the clerical and light industrial segments and into higher value-added markets. Other agencies have sought to add human resource services to their more-traditional recruitment and placement functions. All in all, the UK industry—the second largest in the world after the United States—has undergone widespread restructuring in the last decade. I argue that the recent growth in the UK industry constitutes a regularisation of flexible employment, as casual and fixed-term contracts are replaced by more formal arrangements involving a third party—the temporary staffing agency. Drawing upon global and national data and forty semi-structured interviews with agency owners and managers in the United Kingdom, I analyse the multidimensional growth and restructuring of the UK temporary staffing industry. I argue that as the UK industry ‘matures’ we are witnessing a degree of deepening in relations between temporary staffing agencies and client firms. More broadly, I argue that the growth of the temporary staffing industry has conceptual implications for how economic geographers theorise ‘the firm’ and explore the globalisation of service activities.

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