Tight labor market leading to more hours work, more permanent contracts: SCP

Employers are offering their employees more working hours and a permanent contract at a faster rate to combat the tightness in the labor market, the Netherlands Institute for Social Research (SCP) has said. The government advisor thinks that this opens up opportunities for both sides: fewer shortages for employers and better working conditions for employees.

The Netherlands has the highest number of part-time and flexible contracts. However, little is known so far about the role of employers in the creation of these contracts.

Research by the SCP shows that women are offered part-time contracts at a relatively high amount, with young people and people with a migration background often given flexible contracts. This is not only due to the nature of the job but also because the employers think that this type of contract suits the employees well.

Employers offer mostly full-time contracts in sectors that have a lot of women working in them. This includes the care sector, child daycare, and primary education. Young people and people with migrant backgrounds are often given flexible contracts in sectors like agriculture, the catering industry, and sanitation.

The type of contract that employers offer to their employees is related to the expectations that they have of the employee. For example, employers believe that women prefer part-time work due to their care responsibilities and that flexible contracts are particularly suitable for young people and employees with a migration background.

However, these expectations often do not align with what employers want, according to the SCP. Many women are not given a part-time contract due to their responsibilities in their personal lives. In addition, most workers, including young people, prefer a permanent contract.

The SCP study also showed that employees and employers think that there are no benefits to working more hours and that it could even lead to a regression in income. In reality, almost all part-time workers would earn more if they were to work more hours. Sites like the UrenWerkBerekenaar can be used by employees to gain insight into this. According to the SCP, the government and employers should stimulate the use of these aids.

It was also shown in the study that employers and part-time workers rarely speak to each other about the number of hours that the employee would like to work and the eventual rise in hours. The SCP feels it is important to have these talks once a year because employees’ wishes can change, for example, if the care responsibilities are reduced.