Dutch Labour Market Still Tight as Job Growth Levels Off, UWV Reports
Work in NL | New Stardom
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The report, published this week, shows that the Netherlands has reached near-full employment, making staff shortages a structural problem for the years ahead.
Job Growth Slows, but Dutch Labour Shortages Persist, UWV Says
Job growth in the Netherlands is set to slow to just 1.1 percent over the next two years, according to the latest annual “Region in Focus 2025–2026” report from the Employee Insurance Agency (UWV). Even as the economy expands more gradually, staff shortages remain a major concern for employers across all regions and sectors. With record-high labour participation, the market is now characterised by persistent tightness and structural vacancies.
Tight Conditions Across All Regions
The UWV maps the labour market across 35 regions and finds that tightness remains a persistent feature nationwide. In 13 regions including Central Utrecht, Zeeland, Gorinchem, and Food Valley, the market is now classified as extremely tight, with more than five vacancies for every short-term jobseeker. Even in regions with lower tension, the average vacancy-to-jobseeker ratio is 3.5 to one, meaning that demand for staff vastly outstrips immediate supply.
Shortages are especially acute in sectors vital to Dutch society and the economy. Healthcare, education, childcare, technology, and ICT continue to report the highest vacancy rates. As a result, waiting lists for patients and parents are growing, infrastructure projects face delays, and digital innovation is constrained by a lack of specialised staff. In construction and installation, limited labour availability has slowed progress on housing and energy transition goals.
Record Participation, Shrinking Labour Reserve
The share of working people in the Netherlands aged 15 to 75 climbed to a record 73.2 percent in 2024, up from 66.7 percent a decade ago. In Central Utrecht, Amersfoort, and Gorinchem, this figure nears 76 percent. The pool of potential new workers, the so-called unused labour potential, has dropped to around 1.2 million. This group is split among 372,000 unemployed jobseekers, 510,000 underemployed part-timers, and 284,000 people temporarily unable or unavailable to work due to illness, education, or other factors.
While the UWV forecasts modest job growth nationally, around 1.1 percent through 2027, this growth is uneven. Regions like Greater Amsterdam, Central Utrecht, Food Valley, and Southeast Brabant are expected to see above-average employment increases. By contrast, Limburg, Zeeland, Achterhoek, and Drenthe may see job numbers shrink. Healthcare, welfare, ICT, and specialist business services are projected to grow, while temporary employment and wholesale trade are declining.
A Shift to Skills-Based Hiring
With so few new entrants available, the UWV highlights a structural pivot: employers can no longer rely on simply finding new workers, but must focus on skills and lifelong learning. Companies are responding by relaxing qualification requirements, recruiting based on competencies, and investing in upskilling programs. For jobseekers, continuous education and skills development are increasingly necessary to remain competitive, especially as AI and automation transform job requirements.
Suzanne IJzerman, labour market advisor at UWV, notes: "A skills-focused approach broadens the pool of candidates and helps fill vacancies in crucial sectors. It’s not just about finding people, but about finding the right capabilities and making it easier for workers to transition between jobs."
Technology, especially AI and automation, is reshaping the market. Some employers are using tech to offset staff shortages, automating routine work, and creating new, tech-driven roles. But the adoption of new technologies also raises the bar for workers’ skills, making the focus on training and adaptability even more pressing.
For the first time, the UWV published a national edition of its “Region in Focus” report alongside the 35 regional studies, reflecting the interconnected nature of labour shortages. The report signals a shift in Dutch labour policy: the era of activation, getting more people into work, is ending, replaced by transition, helping people move between sectors and develop new skills.
Employers, policymakers, and workers alike must adapt to a market where flexibility and continuous development are essential.
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