Number of jobs to continue to grow despite geopolitical tensions, automation, AI: UWV

The number of jobs in the Netherlands will grow slightly in the coming years, despite considerable uncertainty due to factors like geopolitical tensions, import duties, and technological developments like automation and AI. The benefits agency UWV expects the number of jobs to increase by 1.1 percent by 2027, according to its annual labor market report.

The UWV expects the number of employee jobs to grow by 2.8 percent in the coming years, to over 9.3 million by the end of 2027. The agency also anticipates modest economic growth.

The number of self-employed jobs, on the other hand, will decline slightly due to enforcement efforts against false self-employment. Since this year, the Tax Authority has resumed checking that employers are not using freelancers for work that employees should do. Starting next year, fines will be imposed if an employer is found to have wrongfully used freelancers.

The UWV divided the Netherlands into 35 regions. The benefits agency believes the number of jobs will increase primarily in Greater Amsterdam, Central Utrecht, Zuidoost-Brabant, and FoodValley (near Ede). In Limburg, Zeeland, Drenthe, and the Achterhoek region, the number of jobs will shrink. Job growth remains stronger in urban areas than in regions on the periphery of the Netherlands.

The UWV also anticipates differences between the sectors. Due in part to persistent staff shortages, the growth rate in various sectors is slowing as a lack of workers is hampering production in many organizations. According to UWV, temporary employment agencies and wholesalers can expect to shrink. The number of jobs in healthcare and social services, among others, could grow due to the aging population and population growth.

The tight labor market is currently cooling slightly, but continues to face challenges. UWV labor market advisor Suzanne IJzerman advises workers to keep their knowledge up-to-date and continue developing skills, such as competence in artificial intelligence (AI). “This will allow them to remain competitive. AI, for example, can lead to a shift in tasks and skills within professions.”