Employment opportunities in the Netherlands are forecast to grow moderately over the next two years, with projections indicating a job growth rate of 0.8% (88,000 jobs) in 2024 and 0.7% (85,000 jobs) in 2025.
The sectors expected to see the most significant increases include healthcare, welfare, and specialist business services, according to Rob Witjes, head of labor market information and advisor at the country’s benefits agency.
Slowing job growth in Netherlands but continued demand
Despite the positive outlook, Witjes noted that the rate of job growth is slowing compared to previous years. “The growth is there, but it is slowing down and will be significantly lower than in previous years,” he said.
This deceleration is attributed to slower economic growth and widespread staff shortages, which have been challenging for companies aiming to expand their workforce.
Netherland job growth in specific sectors
While healthcare, welfare, and specialist business services are poised for rapid job increases, other sectors such as agriculture, construction, public administration, industry, and transport and storage are expected to see stagnating or decreasing job numbers. The anticipated job growth stems from increased demand rather than employee turnover, differentiating it from mere vacancy increases.
Persistent labour market tightness
One of the critical issues highlighted by Witjes is the persistent tightness in the labor market. For the past 2.5 years, there have been more vacancies than unemployed people, a unique situation from a historical perspective. “Companies feel pain from this. The longer it lasts, the more it affects them. And the more creative they have to be,” Witjes remarked.
Future vacancy growth
The UWV (the Employee Insurance Agency) predicts that vacancies will grow by 0.7% in 2024 and 0.8% in 2025, amounting to approximately 1.5 million vacancies per year. This represents about a 15% increase compared to 2019, the last full year before the coronavirus pandemic. However, staff shortages are expected to persist due to an aging population and a dwindling supply of graduates.
Impact of immigration policies
The Netherlands’ plans to limit immigration would not help labor shortages, according to Witjes. The new coalition’s manifesto demands for tighter border controls, swifter expulsions, restrictions on family reunification, and adjustments to temporary residence provisions.
The right of permanent residence is planned to be abolished, and labor immigration will be more strictly regulated, including the residence of foreign students.
The use of the Dutch language in higher education will be encouraged, and refugees and asylum seekers will lose their privileged access to social housing.
Opportunities for Nigerians
The growth in specific sectors presents opportunities for skilled Nigerian professionals.
However, the upcoming restrictive immigration policies may pose challenges for those seeking to move to the Netherlands for work, family reunification, or education.
While companies in the Netherlands may still look to foreign immigrants to fill vacancies amidst an aging population, tighter rules will require strict adherence by immigrants.
