Unemployment holds at 3.8% with 385,000 out of work as Dutch workforce expands

Unemployment in the Netherlands remained unchanged at 3.8 percent in May, with 385,000 people out of work, according to data released last week by Statistics Netherlands (CBS). The unemployment rate was the same as in April, while the overall number of working adults continued to grow.

Over the past three months, the number of unemployed dropped slightly by an average of 2,000 per month. At the same time, the number of people with paid work increased by an average of 7,000 per month. In total, 9.8 million people aged 15 to 75 were employed in May—73.3 percent of that age group.

The labor participation rate is climbing again after a dip in the second half of 2024 but has not yet returned to its peak of 73.4 percent from June last year. Among women, the labor participation rate has already recovered, reaching 69.6 percent in May.

In addition to the unemployed, CBS reported that another 3.2 million people between the ages of 15 and 75 were not actively seeking work or were not immediately available to work. This group, which is not considered part of the labor force, includes people who are retired, sick, or permanently unable to work. The number of people outside the labor force has declined slightly in recent months, dropping by an average of 7,000 per month.

The total labor force, including both working and unemployed individuals, stood at 10.2 million in May, an increase of 5,000 per month on average over the past three months.

Meanwhile, the Dutch Employee Insurance Agency (UWV) recorded 186,600 active unemployment benefit claims (WW-uitkeringen) at the end of May, an increase of 2,400 from April. In May, 27,700 new benefit claims were filed, while 25,300 existing claims were terminated.

The UWV reported that the number of unemployment benefits rose in nearly all sectors, with increases in 14 out of 18 categories. The sharpest rises occurred in agriculture, landscaping, and fisheries, which saw a 7.3 percent increase in benefit claims. The food and beverage industry followed closely with a 7.0 percent rise.

Construction posted a 5.1 percent increase, while the public sector saw a 4.5 percent rise. The category of "other" commercial services rose by 3.6 percent.