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Dutch Industrial Sector Faces Major Challenge with Labor Shortage, Economist Asserts

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Dutch Industrial Sector Faces Major Challenge with Labor Shortage, Economist Asserts
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The Netherlands is facing a significant shortage of workers, described as the primary challenge in the Dutch industry by Peter Hein van Mulligen, Chief Economist at Statistics Netherlands (CBS). 

His remarks followed recent statistics showing a contraction in the Dutch economy during the first three months of 2024. According to APN, CBS data indicated a 0.5 percent decline in economic activity in the first quarter compared to the previous quarter.

According to van Mulligen, the Dutch industrial sector's exports have been more adversely affected than anticipated, resulting in a decrease in overseas shipments due to ongoing challenges in the sector.

Van Mulligen said that the tight labour market issue has likely affected this situation, noting that in the Netherlands, there are more job openings than unemployed individuals. Van Mulligen also noted that the Dutch economy is currently in a phase of "stagnation to slight decline." He mentioned that this situation resembled conditions observed prior to the release of new data.

Looking ahead, there is not an immediate expectation of significant change, as Statistics Netherlands has reported a slight decline in consumer confidence in recent months. Despite this, Van Mulligen does not rule out the possibility of overall economic growth in the Netherlands in 2024.

According to the  EURES report on shortages and surpluses, 195 occupations in the Netherlands are experiencing a deficit of workers. Additionally, the Netherlands is listed among the six EU countries with the most severe shortages in occupations. Shortage occupations span across various sectors such as hospitality, construction, cleaning, manufacturing, healthcare, IT, transportation, and engineering.

The most recent EURES report highlighted construction as a sector experiencing ongoing shortages across the EU, mirroring similar challenges in the Dutch labor market. In a May 2023 statement, the Economic Institute for Construction (EIB) projected that the Netherlands will require an additional 10,000 construction workers annually from 2025 to 2027.

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