Abstract
In recent years there has been a significant shortage of workers in Iceland. The traditional method of arranging temporary work, through direct contracts between employees and employers, has not sufficed. Moreover, there is a skills mismatch that compounds the shortage of workers as the sectors that have grown most rapidly in recent years mainly employ unskilled labor. This study examined the historical background of temporary work in Iceland, recent developments and in particular the growing importance of temporary staffing agencies, as well as the economic rationale for temporary staffing agencies, and the segmented labor market in Iceland. The study employs expert opinion approach, together with content and statistical analysis. Experts placed strongest emphasis on temporary workforce dependency on economic conditions, closely followed by sector triggered temporary workforce fluctuation. Socio-legal infrastructure for temporary workforce had the third strongest emphasis with other themes being less emphasized. These dramatic changes to the Icelandic labor market have undoubtedly had a significant impact on Icelandic society but there is surprisingly little research available into this. The efforts of unions and the Federation of Employees have helped to push through legislation on temporary staffing agencies and the rights of foreign workers, however, as long as there is economic rationale for their operation and a legal and regulatory framework that accommodates them the agencies can be expected to continue bringing temporary staff to Iceland. The impact on the labor market and society thus seems likely to be permanent.
Highlights
Temporary work has historically been common in Iceland but has been based on a direct contractual relationship between each employer and his employees with no agency acting as an intermediary
With low inter-rater emphasis was Segregation of the temporary workforce, which most often occurs due to the language barrier “a lot of these employees are from countries such as Romania and Bulgaria, who don’t speak any Icelandic or English, and are unable to find information”, as well as geographical isolation and reliance on employer “...are in a very isolated situation, especially in remote locations, hotels and such in the countryside, they are in no connection with the Icelandic community except through their employer, which means they are totally reliant upon him to fulfill his duties” (Expert 3)
Today the situation is changing, partially due to the increase of jobs in the tourism industry. Another theme that emerged was Expectations of temporary workforce employees, typically related to better economic conditions “majority of people arriving to Iceland are looking for higher salary and cheaper living, but they are not oriented to long term work in Iceland” (Expert 1)
Summary
Temporary work has historically been common in Iceland but has been based on a direct contractual relationship between each employer and his employees with no agency acting as an intermediary. Industries such as fishing and fish processing have relied on such access to temporary workers, laying them off when they are not needed and rehiring when the need rises again. There is a skills mismatch that compounds the shortage of workers This need for employees has opened up the market for new forms of employment such as temporary jobs and temporary staffing agencies (TSAs)
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