Fewer young men working in NL after 2008 financial crisis: Planning Office
Since the financial crisis of 2008, the labor participation of young men has decreased more and more. Men under the age of 25 started studying longer, and men 25 to 44 faced various setbacks in the aftermath of the financial crisis, central planning office CPB said. Since 2008, more than 100,000 men between the ages of 25 and 44 have been out of work, NOS reports.
Many companies in construction, manufacturing, and business services - all male-dominated sectors - went bankrupt during the recession. "Some were forced to work in another sector, but there are also young men who now live on benefits. Some also want to work but can't find a job," CBP researcher Egbert Jongen said to the broadcaster. The CPB also noticed that more men are ill or incapacitated for work long-term, which also contributed to the decrease in labor participation.
At the same time, older men between the ages of 55 and 64 and women of all ages increased their labor participation in the past decade. "Policy played a major role in this: the state pension age moved up, and the childcare allowance increased. But it is less known that fewer and fewer young men are working. An interesting question is what the policy can mean for them," Jongen said.
The CPB expects a permanent decline in the proportion of working young men. "Over the past twenty years, we have seen a change in the type of jobs due to automation, for example. The financial crisis only accelerated that," Jongen said. And that is not only bad for the young men, but also for society. "Not working affects how you feel, but also your health. There are also extra government costs for benefits, while on the other hand, fewer taxes come in."
CPB is planning a follow-up study to identify exactly to what extent the aftermath of the financial crisis and the change of work due to automation affects how many young men work. "Because that is also important for the period after the coronavirus crisis."