Job growth expected to stall in the Netherlands next year

The tight labor market and the slower economy will stall the growth in employment opportunities in the Netherlands next year, the benefits agency UWV predicted in its labor market forecast. The number of jobs will still increase slightly next year, but several sectors will see it shrink.

For this year, the UWV expects 165,000 new jobs to be created in the Netherlands, an increase of 1.4 percent. Next year that will drop to about 61,000 new jobs, an increase of 0.5 percent. There will be fewer jobs in the industry, construction, financial services, and transport and storage sectors next year than this year.

The long-term growth trend in the percentage of people who work part-time will also continue, decreasing the average number of hours per job, the UWV said. The number of hours worked will increase by 1.2 percent next year and 0.4 percent in 2024, lagging behind the growth in the number of jobs.

The stalled growth in the number of jobs is due to a combination of the tightness in the labor market, which will remain about the same in the coming years, and lower economic growth, according to the UWV. “The available labor supply will increasingly determine the limits of economic growth,” said Rob Witjes, head of labor market information and the benefits agency.

Staff shortages are depressing employment as companies have to look for other solutions than recruiting more staff to increase production, where other solutions can be found.