Outlook for the temporary employment market in 2025

A new year has begun and we are looking forward to it with great expectations. We see great opportunities for our company in the industry in 2025 through technological integration and new business areas. However, major economic challenges remain.

Economic stagnation will remain a key factor in Europe for at least the first half of 2025. Inflation and unstable political situations are making companies reluctant to invest, which in turn is leading to a low demand for employees.

A lack of large orders will have a particular impact on temporary personnel.


However, Mark Pollok, CEO of Trenkwalder Group AG, also sees opportunities in this:

“After an economically challenging 2024, we can also expect 2025 to be a challenging year. The past year has shown that companies are increasingly focusing on optimising costs and increasing efficiency in an uncertain market environment. Demand for traditional temporary work models continues to fall, particularly in the automotive and manufacturing sectors, while specialised niche markets such as IT and healthcare have remained stable or even grown.

At the same time, business process outsourcing (BPO) services are experiencing a significant upturn due to their cost benefits. These trends will continue in the first quarter of 2025. The European BPO market in particular, with its growth potential of around 6.6% per year, is likely to develop further momentum.

I expect cloud-based solutions and automation to play a decisive role. This means that the temporary staffing market is facing two key challenges - reduced order volumes in traditional temporary staffing on the one hand and increasing competitive pressure from specialised providers on the other. Personnel service providers can counter this with customised BPO solutions and a strategic focus on growth sectors.”

Trenkwalder will therefore continue to rely on technology as a driving force in 2025. The use of AI tools such as Large Language Models (LLM) will not only increase efficiency, but also enable completely new solutions: cloud-based platforms will help to centralise processes and improve collaboration between customers and service providers.


Trenkwalder has also expanded its portfolio to include two new products that are expected to become increasingly relevant in 2025 and further extend its technological lead - on-site and remote personal assistance and recruiting process outsourcing (RPO).

Personal assistance services, for example in the areas of office and telephone services, practice and customer support or virtual assistance, allow maximum flexibility in the deployment of specialised staff.

The same advantages result from the Recruiting Process Outsourcing (RPO). Trenkwalder uses its specialist expertise in recruiting to map the entire recruiting process or parts of it for its customers. While the companies concentrate on their core business, Trenkwalder improves the candidate experience and ensures a faster time-to-hire.


The focus on both new products shows that the placement of customised, specialised workers and the provision of individual, efficient and easily scalable processes will be the new face of the temporary employment market.


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