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 Addressing Labour Shortages: The Contributions of Labour Hire Companies

Labour shortages often occur – especially in the construction industry. There are various reasons for such a situation to develop, including aspects such as unscheduled contracts, unexpected absence of employees, or the need for extra skilled people for a relatively short period.

Employers solve problems regarding shortages in different ways. They can, for instance, request a traditional recruitment agency to provide temporary personnel. However, personnel for hire through a labour agency is becoming the favourite way of addressing the problem all around the world.

Let’s discuss in this article some contributions hire companies can make to address shortages.

Agency labour hire vs casual employment – differences

Before discussing the contribution hire companies can make to solve shortage issues, the difference between personnel-hire and casual employment must be understood.

The main difference is that with hiring, the business outsources the solution to a company that provides skilled people for the needed period. The hired personnel don’t work for the business but are employed and paid by the hire company.

With casual employment, the business with the shortages directly employs and pays the extra employees themselves.

Contributions labour-hire companies can make to address employer shortages

Labour hire NSW – and all other regions as well – can amongst other things contribute as follows:

  1. Provide skilled workers who are employed by the hiring company to businesses with temporary shortages.  This ensures that no loss of income for the worker or embarrassment on the side of the business occurs when the employee’s job is terminated after a short time.
  2. Offer the option of flexible workers. They make it possible for a business to use extra workers in peak times and scale down during the off-season.
  3. Enable businesses to quickly and efficiently fill unexpected or seasonal vacancies with skilled workers.
  4. Assist businesses when they are looking for workers with specialised skills on short notice.
  5. An agency contributes to the reduction of the number of unemployed people in a country’s workforce.


By using an agency for an extra labour workforce a business doesn’t have to arrange for the workers’ medical and pension funds. Actually, the component of a business involved with recruitment can be minimised and vacancy advertisement expenses can be saved. Labour hire cost per hour is less than advertising and employing directly.

When a business outsources its hire problem it doesn’t handle aspects such as compliance, or the management of mandatory documentation required by the Australian authorities.

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