Unemployment falls below 4 percent

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Over the previous three months, the number of people aged 15 to 74 in paid employment grew by an average of 20 thousand per month, Statistics Netherlands (CBS) reports. There were over 8.7 million people in work in March. Around 4.2 million people did not have paid work for a variety of reasons, including 357 thousand people who indicated they had recently looked and been immediately available for work. According to the ILO definition, these are the unemployed. Their number declined by 13 thousand per month on average over the previous three months. As a result, the unemployment rate in the Dutch labour force stood at 3.9 in March.

The remainder of the group not in employment (nearly 3.9 million) had not looked or/nor been immediately available for work recently. Their number dropped by an average 3 thousand per month over the previous three months. The Employee Insurance Agency (UWV) recorded a decline in the number of unemployment (WW) benefits to a total of 327 thousand at the end of March; down by over 2 thousand compared to the previous month.

Infographic, Changes in labour force composition march 2018

357 thousand unemployed according to ILO definition

In order to enable comparison of cyclical developments in the labour market between countries, the unemployment indicator of the International Labour Organisation (ILO) is often taken as a measure. According to this indicator, the ‘unemployed’ includes all 15 to 74-year-olds who do not have paid work but who have been looking for paid work recently and who are immediately available. There were 357 thousand unemployed in March, equivalent to 3.9 percent of the labour force. The unemployment rate stood at 4.1 one month previously.

Unemployment indicator (ILO) and unemployment benefits, seasonally adjusted
   Unemployment indicator (ILO)
(15-74 yrs, seasonally adjusted) (x 1,000)
Unemployment benefits (15 yrs to pension entitlement age) (x 1,000)
2011J430284
2011F425280
2011M413270
2011A411261
2011M414256
2011J409252
2011J425254
2011A427256
2011S442252
2011O458253
2011N474258
2011D473270
2012J486292
2012F482299
2012M487296
2012A502292
2012M501291
2012J502291
2012J518298
2012A517304
2012S530304
2012O539310
2012N554322
2012D572340
2013J589369
2013F601377
2013M619380
2013A625380
2013M632378
2013J648382
2013J666395
2013A670399
2013S675400
2013O680408
2013N677419
2013D687438
2014J691460
2014F699460
2014M692454
2014A684443
2014M672436
2014J656431
2014J648437
2014A637430
2014S630420
2014O632419
2014N635425
2014D643441
2015J645458
2015F633455
2015M626443
2015A625427
2015M617416
2015J611410
2015J603420
2015A604420
2015S609417
2015O616421
2015N596427
2015D588446
2016J574465
2016F581469
2016M574470
2016A572461
2016M560448
2016J550438
2016J541432
2016A521427
2016S510424
2016O502420
2016N499410
2016D482412
2017J480419
2017F473416
2017M463415
2017A456401
2017M456386
2017J446372
2017J436364
2017A426362
2017S422351
2017O404343
2017N397337
2017D395330
2018J380335
2018F367330
2018M357327
Source: CBS, UWV

UWV: Gradual decline, high dynamics

The number of WW benefits in March fell by 0.7 percent to a total of 327 thousand. This is equivalent to 314 thousand benefit recipients. There is high degree of dynamics in terms of people entering and leaving unemployment (WW), partly as a result of seasonal influences. In the first three months of 2018, UWV provided 100 thousand new unemployment benefits; 103 thousand benefits were terminated. Over half of the terminated unemployment benefits lasted for less than six months.

UWV: Nearly 100 thousand long-term WW benefit recipients

The number of people receiving an unemployment benefit for one year or longer dropped below 100 thousand. In the past four years, this has only occurred once before. More than three-quarters of these benefit recipients are 50 years of age or older.

Unemployment gap between men and women has narrowed

The unemployment rate was not yet at pre-crisis level in the past month. However, it has been reduced by half since the beginning of 2014 when employment peaked at 7.8 percent.

In March 2018, 3.8 percent of the male and 4.1 percent of the female labour force were unemployed. The gap between men and women was therefore far narrower than ten years ago, when the labour market was tight as well. At that time, 3.0 percent of the male and 4.4 percent of the female labour force were unemployed. The unemployment rate among women is already below pre-crisis level; this is not yet the case for men.

Unemployment (ILO indicator) by sex
 March 2008 (%)March 2014 (%)March 2018 (%)
Total3.67.83.9
Men37.53.8
Women4.48.24.1

Unused labour potential

Every month, CBS publishes figures on the total (employed and unemployed) labour force as well as the number of people not in the labour force (ILO definition). However, the unemployed labour force does not include the total unused labour potential, i.e. other groups of people aside from the unemployed according to the ILO indicator. These people have either looked for work recently or are immediately available for work. They are counted towards the unused labour potential, but fall outside the scope of the ILO definition of employment. People who work part-time but want to work more hours and are immediately available are also included in the unused labour potential.

These groups are reported on every quarter in terms of size and composition. The overall picture provided in the table below is based on the latest quarterly figures (Q4 2017). The total unused labour potential stood at over 1.2 million in Q4 2017, versus nearly 1.4 million one year previously. Development of the total unused labour potential closely follows developments in unemployment according to the ILO definition. Figures for Q1 2018 will be published on 15 February 2018.

Infographic, Labour force barometer Q4 2017

Every month, CBS publishes figures on the labour force in accordance with international guidelines. The corresponding indicators, i.e. the employed and unemployed labour force, are used around the world to describe cyclical developments on the labour market. Monthly figures are essential in this respect. In addition, UWV issues its own monthly figures on unemployment benefits. Figures released by UWV do not correspond one-to-one with the labour force indicators.