GDP growth in Belgium is expected to remain relatively high at 0.7% in 2024 compared to other European economies. This is mainly due to the automatic indexation of wages, which means that income increases with the rate of inflation (excluding alcohol, tobacco and fuel). Greater purchasing power stimulates consumer spending and, therefore, economic growth. However, higher hourly labor costs will negatively impact labor demand, including demand for temporary agency workers. We therefore expect a decline in market volumes in the temporary employment sector in 2024.
Despite a slowdown in economic growth, the labor market in Belgium remains very strong. This is largely due to the tight labor market in Belgium. One of the consequences of the talent shortage is that the duration of temporary work is shortening, because temporary workers are usually hired permanently.