Dutch unemployment steady at 3.9% in May as workforce shrinks

The unemployment rate in the Netherlands remained unchanged at 3.9 percent in May, with 399,000 people out of work, according to Statistics Netherlands. Although the number of unemployed people has decreased by an average of 6,000 a month over the past three months, the number of people in paid jobs also fell, dropping by an average of 7,000 per month during the same period.

Statistics Netherlands said that 3.2 million people were classified as outside the labour force in May because they had either not recently searched for a job or were not available to start work immediately. The group consists largely of retirees and people who are unable to work due to illness or disability. Over the past three months, its size has grown by an average of 11,000 people per month.

The benefits agency UWV reported that 199,400 unemployment benefits were being paid at the end of May, down 1.8 percent from the previous month.

Nearly every sector saw a decline in the number of claims, with the largest drops occurring in agriculture and fisheries, landscaping, construction, and the temporary staffing industry. According to UWV, benefit numbers in these sectors usually decrease during the spring due to increased demand for seasonal workers.

The decline in employment in May was largely driven by more people leaving the workforce, Statistics Netherlands said. At the same time, fewer people who had previously been outside the labour force entered the job market and secured work straight away.

The agency added that employment growth has lost momentum over the past two years. While the number of employees has continued to rise, the number of self-employed workers has fallen during that period.