Workers in the Netherlands Less Likely to Switch Jobs Amid Economic Uncertainty
A recent survey by the Dutch employers’ association AWVN shows that employees in the Netherlands are becoming more cautious about changing jobs due to the current economic climate. While the number of available jobs has grown steadily in recent years, that growth is now slowing, and both workers and employers are adjusting their behavior accordingly.
Falling staff turnover
The AWVN survey, which gathered responses from around 150 large Dutch companies and institutions, found that in many sectors it has become easier for employers to retain staff. International political tensions — such as policies from the United States — combined with rising company closures have created an atmosphere of economic uncertainty. As a result, the labour market is “cooling,” and both businesses and employees are showing greater caution.
Instead of seeking new opportunities, many workers now choose to remain with their current employer. When staff do leave, it is often because they are attracted by more favorable working conditions, better opportunities for advancement, or more flexible working hours elsewhere. Despite the slower turnover, however, eight out of ten employers still face staffing shortages. Demand remains particularly high for candidates with vocational training (MBO) and relevant experience, especially in technology, production, and ICT-related fields.
Job creation slows down
The Employee Insurance Agency (UWV) predicts that job growth will continue to decline in the coming years. Between 2020 and 2022, the Netherlands saw an increase of around 600,000 jobs, followed by another 300,000 between 2022 and 2024. From 2024 to 2027, that figure is expected to fall sharply, with just 100,000 new jobs being created.
Rising wages, higher transportation costs, and more expensive raw materials are making it harder for companies to expand. This has led to hesitation when it comes to hiring additional staff, particularly in the chemical industry, electrotechnical sector, and transport and storage. Still, not all sectors are affected equally. Information and communication services, as well as healthcare, are expected to continue seeing demand for new employees, while agriculture and wholesale are likely to contract further.
A cautious outlook
In short, while the Dutch labour market remains tight, the balance is shifting. Employers are finding it slightly easier to keep their workforce, and employees are holding on to secure jobs rather than taking risks in uncertain times. At the same time, job growth is slowing, meaning the coming years may bring more structural changes to the Dutch economy and workforce.
