The Dutch economy is cooling down and this is reflected in the labor market. The number of unfilled vacancies decreased slightly in March to 380,000, a decrease of 5 percent compared to the same month last year. The number of new vacancies even fell by 10 percent.
“Companies are more hesitant to hire new people because the economy is not doing well,” says labor market analyst Bart van Krimpen of Randstad. “But we still have to deal with a tight labor market. There is a lot of demand for technicians, such as operators and electricians.”
Temporary employment agencies are often the first companies to notice when the economy is going better or worse. That’s because companies tend to hire more flexible workers the busier they get. In addition, companies let them go faster if they slow down.
According to ABN AMRO economist Aggie van Huisseling, our economy will cool down further this year. For example, it grew by 4.5 percent last year. “For this year we expect a growth of 1.2 percent,” says Van Huisseling. “This is mainly due to the lower demand from the eurozone and the United States. And that has an effect on our exports.”
Labor market scarcity still high
The interest rate hikes of the European Central Bank (ECB) also play a role. For example, mortgage interest rates are rising, causing the housing market to cool. According to Van Huisseling, the vacancy rate in the construction industry is decreasing as a result. “And companies are more careful to post new vacancies. They are also less likely to fire employees.”
According to Randstad analyst Van Krimpen, the shortage on the labor market is still great, but there is evidence of stabilization. There is a shortage in technology, care, education and ICT in particular.
Van Huisseling agrees. “Unemployment is historically low, while there have never been so many people in work. The tightness on the labor market will remain great in the long term, also because of the aging population.”
2023-04-25 18:04:58
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