Reorganisation and employment
Not only Dutch companies, but also local branches of international firms, are undergoing remediation. Big names such as Philips, Signify, VDL Nedcar, and Tata Steel IJmuiden have announced reorganisations. Friesland Campina recently announced that it would cut 1800 jobs, half of which will be in the Netherlands. Unemployment in the Netherlands, which stood at 3.5% last year, is expected to rise to between 4% and 4.5% by 2025. Analysts see the labour market as the last 'domino' to fall after economic changes, such as Interest rate hikes by the European Central Bank.
Job Opportunities and Government Needs
Although the number of job vacancies has decreased, government demand for labour remains strong, particularly in healthcare, education, and infrastructure projects. The ageing of the population leads to a structurally weak labour supply. Many companies therefore choose to retain employees, even in Tougher times, due to the challenge of filling vacancies in the future.
Industry and reorganisations
The industry, particularly affected by higher energy and labour costs, is under pressure. Economists see a nuanced picture, with some companies that received support during the pandemic now finding themselves in difficulty. Manufacturing output is currently just below pre-Covid levels, with indicators pointing to further contraction. The sector is under international pressure due to higher costs.
There is a clear shift towards the service sector, while the importance of industries such as chemicals, telecoms and mechanical engineering is decreasing. This has an impact on economic growth, as these sectors drive high labour productivity and economic growth. The current trend of reorganisations and the changing labour market pose a complex challenge for the Dutch business community. The focus is on maintaining high-productivity sectors and balancing the labor market to ensure economic stability.
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