Fewer people have paid work, but more over-65s holding jobs as pension age rises

The number of people with paid work in the Netherlands decreased by an average of 18,000 people per month over the past three months. In August, 9.8 million people, 73 percent of the Dutch population aged 15 to 75, had a paid job, Statistics Netherlands (CBS) reported on Thursday. The statistics agency also reported that half of 65-year-olds were still working in the second quarter of 2024, attributing this to the increasing state pension age.

Labor participation was relatively stable at around 73.3 percent between January and July 2024. In August, it suddenly dropped to 73.0 percent. The decrease was most prominent among young people and people aged 45 and older. Among people aged 55 to 60, labor participation has been decreasing since the beginning of 2024.

Among people aged 60 and over, there was an increase in labor participation in the first half of this year. The number of older people still working has been increasing for years due to the rising state pension age. In the second quarter, 49.6 percent of 65-year-olds in the Netherlands had a paid job, up from 14.9 percent in 2013, when CBS first started keeping track of this figure. In 2013, the state pension age was increased to 65 years and one month. It now stands at 67 years.

The number of unemployed people in the Netherlands increased slightly in the past three months, by an average of 2,000 per month to 374,000 people in August. That is 3.7 percent of the working population.

The Netherlands also counted 3.2 million people who did not have paid work, but aren’t considered unemployed and part of the labor population because they are not looking for work. These are mostly retirees and people unable to work due to illness or disability. Their number grew by an average of 16,000 per month over the past three months.

At the end of August, the benefits agency paid out 170,700 unemployment benefits, an increase of 6,500 (+4 percent) compared to July. In August, 29,000 new unemployment benefits became active, and 22,500 were terminated.

The increase was greatest in the education sector. “The number of unemployment benefits from education usually increases in the summer months. This is due to the expiry of employment contracts at the end of the school year,” CBS said. Unemployment benefits decreased in construction (-3 percent) and agriculture, landscaping, and fisheries (-2 percent). These sectors are more active in the summer season.