Dutch job market tightens again, with rise in vacancies in construction and hospitality

The Dutch labor market became slightly tighter in the final quarter of 2023, marking the first increase in tightness since late 2023, according to the Central Bureau for Statistics (CBS). The tightening is attributed to a rise in the number of job vacancies, while the number of unemployed people remained unchanged.

The trade, healthcare, and business services sectors together accounted for about half of all vacancies in the Netherlands. The construction and hospitality sectors saw the largest increases in vacancies, while the public administration, financial services, and education sectors experienced the most significant declines.

The CBS measures labor market tightness by comparing the number of open job vacancies to the number of unemployed individuals. Between October and December 2023, the number of vacancies increased by 7,000 to reach 404,000.

During the same period, the number of unemployed individuals remained at 374,000, the same as in the previous quarter. This means that for every 100 unemployed people, there were 108 open vacancies, up from 106 in the third quarter of 2023.

This increase in vacancies is reportedly particularly notable following two years of nearly constant declines in the number of job openings. The only previous uptick occurred at the start of 2023, CBS reported.

CBS also noted that the number of jobs in the Netherlands grew by 33,000, reaching nearly 11.7 million by the end of 2023. This increase was seen both in salaried employees and self-employed individuals.

The public administration and business services sectors saw the largest job growth, followed by the information and communication sector and the construction industry.

Among those with paid employment in the Netherlands, 2.7 million had flexible contracts by the end of 2023, a decrease of 53,000 compared to the last quarter of 2023. According to CBS, this drop was mainly due to a reduction in the number of workers with temporary contracts that could lead to permanent positions. At the same time, the number of workers with permanent contracts has been increasing steadily since the end of 2015.