Macroeconomic scoreboard

Macroeconomic scoreboard

Periods Current account balance, % of GDP (%) Net international investment position (%) Real effective exchange rate Real eff.exch.rate,change on 3 yrs prev. (%) Real effective exchange rate Real effective exchange rate, index (%) Share of world exports Share of world exports,change 5 yrs prev (%) Share of world exports Share of world exports, percentage (%) Nominal unit labour costs Nom.unit lab.costs,change on 3 year prev (%) Nominal unit labour costs Nominal unit labour costs, index (%) Deflated house prices (%) Private sector credit flow Private sector credit flow as a % of GDP (%) Private sector credit flow Households credit flow (%) Private sector credit flow Non-fin. corporations credit flow (%) Private sector debt Private sector debt as a % of GDP (%) Private sector debt Household sector debt as a % of GDP (%) Private sector debt Non-financial corporations sector debt (%) Government debt as a % of GDP (%) Unemployment rate; 3-year average (%) Total financial sector liabilities (%) Activity rate Activity rate (15-64), 3-years change (%) Activity rate Activity rate (15-64), % (%) Long-term unemployment,3-yr change,p.p. (%) Youth unemployment Youth unemployment, 3-yrs change in p.p (%) Youth unemployment Youth unemployment, % (%)
2010* 5.8 10.7 -1.5 100.0 -8.0 3.2 7.6 100.0 -3.3 2.8 3.4 -0.6 244.4 118.0 126.4 59.3 4.3 5.4 1.1 77.9 -0.3 1.7 11.1
2011* 7.0 19.8 -2.4 99.7 -8.4 3.1 5.3 101.2 -4.0 8.2 1.7 6.5 247.2 117.5 129.8 61.7 4.8 10.3 0.1 78.1 0.3 1.4 10.0
2012* 8.6 26.1 -6.0 97.9 -12.8 3.0 2.7 104.0 -7.9 6.1 0.7 5.5 252.1 117.4 134.7 66.3 5.3 6.0 0.8 79.0 0.7 1.5 11.7
2013* 9.5 30.7 0.5 100.5 -11.3 3.1 4.8 104.8 -7.9 9.7 -1.4 11.1 257.7 114.6 143.1 67.7 6.0 -1.6 1.5 79.4 1.1 2.1 13.2
2014* 9.4 44.5 0.7 100.4 -11.0 3.1 3.7 104.9 -0.1 4.3 -0.6 4.9 267.2 112.8 154.4 67.9 6.8 8.0 1.0 79.0 1.5 2.7 12.7
2015* 8.1 48.9 -0.9 97.0 -6.7 3.0 -0.4 103.6 3.4 0.0 0.9 -0.9 262.8 110.6 152.2 64.7 7.2 4.0 0.6 79.6 1.4 -0.4 11.3
2016* 7.5 61.2 -2.3 98.2 -2.9 3.0 -0.3 104.5 4.5 3.9 1.2 2.7 259.3 108.9 150.4 61.9 6.8 7.4 0.3 79.7 0.4 -2.4 10.8
2017* 8.4 59.8 -1.8 98.6 2.1 3.1 0.2 105.1 6.1 4.0 1.5 2.5 250.4 107.2 143.2 56.9 5.9 0.5 0.7 79.8 -0.9 -3.8 8.9
2018* 9.9 71.9 3.2 100.1 2.6 3.1 3.7 107.4 7.1 5.6 1.5 4.1 244.2 103.7 140.5 52.4 4.9 -2.9 0.6 80.3 -1.6 -4.1 7.2
2019 3rd quarter* 10.5 93.8 2.6 100.6 -0.4 3.1 5.3 109.7 5.4 2.0 1.2 0.8 238.1 101.1 137.0 49.3 4.2 5.9 1.2 80.8 -1.5 -4.4 6.7
2019 4th quarter* 10.5 90.0 2.4 100.6 0.2 3.1 5.9 110.6 4.8 0.0 1.2 -1.2 234.0 100.3 133.7 48.7 4.1 6.1 1.2 80.9 -1.5 -4.1 6.8
2019* 10.5 90.0 2.4 100.5 0.2 3.1 5.9 110.7 4.8 0.0 1.2 -1.2 234.0 100.3 133.7 48.7 4.0 6.1 1.2 80.9 -1.8 -4.1 6.7
2020 1st quarter* 10.2 100.7 2.5 100.5 2.2 3.1 7.2 111.9 4.5 1.2 1.4 -0.2 235.1 99.8 135.3 49.5 3.8 2.4 1.3 81.0 -1.4 -3.6 6.8
2020 2nd quarter* 10.1 102.6 3.0 100.9 4.2 3.1 10.9 115.9 4.4 -2.2 1.3 -3.4 239.8 102.1 137.7 55.2 3.9 4.4 1.2 80.9 . -0.4 9.5
Source: CBS.
Explanation of symbols

Table description


This table shows the indicators of the macroeconomic scoreboard. Furthermore, some additional indicators are shown. To identify in a timely manner existing and potential imbalances and possible macroeconomic risks within the countries of the European Union in an early stage, the European Commission has drawn up a scoreboard with fourteen indicators. This scoreboard is part of the Macroeconomic Imbalance Procedure (MIP). This table contains quarterly and annual figures for both these fourteen indicators and nine additional indicators for the Netherlands.

The fourteen indicators in the macroeconomic scoreboard are:
- Current account balance as % of GDP, 3 year moving average
- Net international investment position, % of GDP
- Real effective exchange rate, % change on three years previously
- Share of world exports, % change on five years previously
- Nominal unit labour costs, % change on three years previously
- Deflated house prices, % change on one year previously
- Private sector credit flow as % of GDP
- Private sector debt as % of GDP
- Government debt as % of GDP
- Unemployment rate, three year moving average
- Total financial sector liabilities, % change on one year previously
- Activity rate, % of total population aged 15-64, change in percentage points on three years previously
- Long-term unemployment rate, % of active population aged 15-74, change in percentage points on three years previously
- Youth unemployment rate, % of active population aged 15-24, change in percentage points on three years previously

The additional indicators are:
- Real effective exchange rate, index
- Share of world exports, %
- Nominal unit labour costs, index
- Households credit flow as % of GDP
- Non-financial corporations credit flow as % of GDP
- Household debt as % of GDP
- Non-financial corporations debt as % of GDP
- Activity rate, % of total population aged 15-64
- Youth unemployment rate, % of active population aged 15-24

Data available from: first quarter of 2006.

Status of the figures:
Annual and quarterly data are provisional.

Changes as of 2 October 2020:
For all indicators figures except for the long-term unemployment the second quarter of 2020 have been added.
The figures for the first quarter of 2020 have been adjusted.

When will new figures be published?
New data are published within 120 days after the end of each quarter. The first quarter may be revised in October, the second quarter in January. Quarterly data for the previous three quarters are adjusted along when the fourth quarter figures are published in April. This corresponds with the first estimate of the annual data for the previous year. The annual and quarterly data for the last three years are revised together with the publication of the first quarter in July.

Description topics

Current account balance, % of GDP
Current account balance, % of gross domestic product (GDP), three-year moving average.

The current account balance is made up of three parts:

- The trade balance: value of exports of goods and services minus value of imports of goods and services;
- Balance on income: primary income received from the rest of the world minus primary income paid to the rest of the world. Primary income consists of compensation of employees, taxes and subsidies on production and imports, and property income;
- Net current transfers: current transfers received from the rest of the world minus current transfers paid to the rest of the world. Current transfers are dividend tax, social security premiums and benefits and other current transfers.

Sources:
The current account balance is based on the balance of payments as set by the De Nederlandsche Bank (DNB). The GDP is compiled by Statistics Netherlands (CBS) on the basis of its available sources.

Calculation of the scoreboard indicator:
First, the current account balance is calculated as a percentage of GDP. Subsequently the three-year moving average of these percentages is calculated.

Interpretation of the indicator:
In most cases, a current account surplus means that an economy has a positive trade balance, i.e. it exports more than it imports. A positive trade balance contributes to economic growth and may be the result of a strong international competitiveness.
Usually, a current account surplus is accompanied by a net capital outflow, which improves the economy's net international investment position. Conversely, a long-term current account deficit is accompanied by a net capital inflow, which can make the economy vulnerable to foreign investment sentiment.

Upper and lower limits:
For this indicator, the European Commission has set a lower limit of -4 percent and an upper limit of +6 percent.
Net international investment position
Net international investment position, % of gross domestic product (GDP).

The net international investment position is the value of financial assets of Dutch residents abroad minus the value of financial assets of non-residents in the Netherlands.

The net international investment position can be divided into:
- Net direct investment;
- Net portfolio investment;
- Net financial derivatives;
- Net official reserves;
- Net other investment.

Sources:
The net international investment position is based on the balance of payments as compiled by De Nederlandsche Bank (DNB). GDP is compiled by Statistics Netherlands (CBS) on the basis of its available resources.

Calculation of the scoreboard indicator:
The net international investment position is calculated as a percentage of GDP.

Interpretation of the indicator:
If the net international investment position is negative, a country is in debt to the rest of the world. A large negative net international investment position means that a country is sensitive to developments on international capital markets. However, the composition of the assets and debts is critical in this respect. If Dutch equity investors perform worse abroad than foreign equity investors in the Netherlands, the Dutch net international investment position will decrease, but this will not lead to an increase in Dutch vulnerability. If the net international investment position decreases because more money is borrowed abroad, vulnerability will increase, however.

Upper and lower limits:
For this indicator the European Commission has only set a lower limit: -35 percent.
Real effective exchange rate
Real effective exchange rate (42 partners).
The real effective exchange rate is defined as the nominal effective exchange rate adjusted for price developments.
Real eff.exch.rate,change on 3 yrs prev.
Real effective exchange rate (42 partners) - % change on three years previously.

The real effective exchange rate is defined as the nominal effective exchange rate adjusted for price developments.

The nominal effective exchange rate is the trade-weighted exchange rate of a currency compared to some other currencies that are important for the economy. For the scoreboard, the effective exchange rate with 42 trading partners is calculated.

Sources:
The real effective exchange rate is based on data and calculations from the European Commission (DG ECFIN) and is published by Eurostat. See Eurostat's website for more information with regard to the calculation of the real effective exchange rate.

Calculation of the scoreboard indicator:
For the scoreboard, the real effective exchange rate for the Netherland with 42 trading partners (source: Eurostat) is taken as a starting point. Subsequently the percentage change on three years previously is calculated.

Interpretation of the indicator:
The real effective exchange rate reflects both relative price developments and the development of the exchange rates. Negative growth may indicate an improvement in price competitiveness, positive growth a deterioration.

Upper and lower limits:
For this indicator the European Commission has set a lower limit of -5 percent and an upper limit of +5 percent for Eurozone countries, and limits of -11 percent and + 11 percent for non-Eurozone countries.
Real effective exchange rate, index
Real effective exchange rate (42 partners), index.

The real effective exchange rate is defined as the nominal effective exchange rate adjusted for price developments.

The nominal effective exchange rate is the trade-weighted exchange rate of a currency compared to some other currencies that are important for the economy. For the scoreboard, the effective exchange rate with 42 trading partners is calculated.

Sources:
The real effective exchange rate is based on data and calculations from the European Commission (DG ECFIN) and is published by Eurostat. See Eurostat's website for more information with regard to the calculation of the real effective exchange rate.

Calculation of the scoreboard indicator:
See Eurostat's website for more information with regard to the calculation of the real effective exchange rate.

Interpretation of the indicator:
The real effective exchange rate reflects both relative price developments and the development of the exchange rates. Negative growth may indicate an improvement in price competitiveness, positive growth a deterioration.

Upper and lower limits:
The European Commission has upper and lower limits for the change on three years previously. The European Commission has set a lower limit of -5 percent and an upper limit of +5 percent for Eurozone countries, and limits of -11 percent and + 11 percent for non-Eurozone countries.
Share of world exports
Share of world exports as a % of world exports.
The share of world exports is defined as the value of exports of goods and services in the Netherlands as a percentage of the value of world exports. The value of exports of goods and services in the Netherlands is based on the balance of payments as compiled by the Dutch Central Bank (DNB).
Share of world exports,change 5 yrs prev
Share of world exports as a % of world exports - % change on 5 years previously.

The share of world exports is defined as the value of exports of goods and services in the Netherlands as a percentage of the value of world exports. The value of exports of goods and services in the Netherlands is based on the balance of payments as compiled by the Dutch Central Bank (DNB).

Sources:
The value of world exports is based on data from the International Monetary Fund (IMF). IMF data are available only on an annual basis; quarterly data are based on an interpolation using both the world export volume index and the world export price index in dollars from the world trade monitor of the Netherlands Bureau for Economic Policy Analysis and euro-dollar exchange rate figures from the Dutch central bank (DNB).

Calculation of the scoreboard indicator:
Exports of goods and services are calculated as a percentage of world exports. Subsequently, the percentage change is calculated with respect to five years previously.

Interpretation of the indicator:
Exports of goods and services are a source of income for a country. A change in a country's share in world exports indicates a change in its relative competitiveness on the world market.

Upper and lower limits:
For this indicator, the European Commission has set only a lower limit: - 6 percent.
Share of world exports, percentage
Share of world exports as a % of world exports

The share of world exports is defined as the value of exports of goods and services in the Netherlands as a percentage of the value of world exports. The value of exports of goods and services in the Netherlands is based on the balance of payments as compiled by the Dutch Central Bank (DNB).

Sources:
The value of world exports is based on data from the International Monetary Fund (IMF). IMF data are available only on an annual basis; quarterly data are based on an interpolation using both the world export volume index and the world export price index in dollars from the world trade monitor of the Netherlands Bureau for Economic Policy Analysis and euro-dollar exchange rate figures from the Dutch central bank (DNB).

Calculation of the scoreboard indicator:
Exports of goods and services are calculated as a percentage of world exports.

Interpretation of the indicator:
Exports of goods and services are a source of income for a country. A change in a country's share in world exports indicates a change in its relative competitiveness on the world market.

Upper and lower limits:
For this indicator, the European Commission has set only a lower limit for the change on five years previously: - 6 percent.
Nominal unit labour costs
Nominal unit labour costs are defined as the ratio between nominal labour costs per employee and labour productivity.
Nom.unit lab.costs,change on 3 year prev
Nominal unit labour costs - % change on three years previously.

The nominal unit labour costs are defined as the ratio of labour costs per employee to labour productivity. Labour costs are the ratio of total compensation of employees to the number of employees. The total compensation of employees consists of wages and salaries and employers’ social contributions. Labour productivity is calculated as the ratio of gross domestic product (price level 2010) to the total employment.

Eurostat's method for calculating nominal unit labour costs deviates from the concept 'labour costs'. Labour costs not only consist of wages and salaries that are periodically and directly paid to employees and employers' social contributions, but also costs that are associated with the employment of personnel, such as wages in kind, holiday allowances and refunds for training costs made by the employee. Besides, wage subsidies are deducted. In this table, figures are presented according to the definition of Eurostat and the European Commission.

In addition to the nominal unit labour costs, Statistics Netherlands presents quarterly figures on unit wage costs in the table 'Loonkosten per eenheid product; nationale rekeningen'. The wage costs are the total of wages, social contributions paid by employers and taxes on wage costs minus wage cost subsidies.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Nominal unit labour costs are calculated on the basis of available data: compensation of employees, gross domestic product (price level 2010), number of employees and number of persons employed. Subsequently, the percentage change compared to three years previously is calculated.

Interpretation of the indicator:
Positive growth means that labour costs are rising faster than labour productivity, which may adversely affect the competitiveness in the long term.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: + 9 percent for Eurozone countries and + 12 percent for non-Eurozone countries.
Nominal unit labour costs, index
Nominal unit labour costs - index

The nominal unit labour costs are defined as the ratio of labour costs per employee to labour productivity. Labour costs are the ratio of total compensation of employees to the number of employees. The total compensation of employees consists of wages and salaries and employers' social contributions. Labour productivity is calculated as the ratio of gross domestic product (price level 2010) to the total employment.

Eurostat's method for calculating nominal unit labour costs deviates from the concept 'labour costs'. Labour costs not only consist of wages and salaries that are periodically and directly paid to employees and employers' social contributions, but also costs that are associated with the employment of personnel, such as wages in kind, holiday allowances and refunds for training costs made by the employee. Besides, wage subsidies are deducted. In this table, figures are presented according to the definition of Eurostat and the European Commission.

In addition to the nominal unit labour costs, Statistics Netherlands presents quarterly figures on unit wage costs in the table 'Loonkosten per eenheid product; nationale rekeningen'. The wage costs are the total of wages, social contributions paid by employers and taxes on wage costs minus wage cost subsidies.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Nominal unit labour costs are calculated on the basis of available data: compensation of employees, gross domestic product (price level 2010), number of employees and number of persons employed.

Interpretation of the indicator:
Positive growth means that labour costs are rising faster than labour productivity, which may adversely affect the competitiveness in the long term.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit for the change on three years previously: + 9 percent for Eurozone countries and + 12 percent for non-Eurozone countries.
Deflated house prices
Deflated house prices, % change on one year previously.

Deflated house prices are the ratio between the house price index on the one hand and the deflator for household consumption on the other.

The house price index shows the average price development of all own (i.e. non-rental) homes, both existing and newly constructed, which are intended for permanent residence by a private household.

The deflator for household consumption reflects average price developments in consumption expenditure by households (including non-profit institutions serving households). This deflator is similar, but not identical, to the consumer price index (CPI).

Sources:
The house price index is calculated by Statistics Netherlands (CBS). Statistics Netherlands does not yet publish the house price index used here, but does publish a price index of existing residential property on a quarterly basis. See the website of Eurostat for more information about the house price index.

The deflator for household consumption is derived from Statistics Netherlands’ national accounts.

Calculation of the scoreboard indicator:
The house price index is divided by the deflator for household consumption. Subsequently the percentage change with respect to one year previously is calculated.

Interpretation of the indicator:
The indicator compares the development of house prices with the development of the average consumer prices for households. Positive growth means that house prices are rising faster than consumer prices. In time, this may indicate a price bubble in the housing market.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +6 percent.
Private sector credit flow
The private sector credit flow shows by how much debts of households, non-profit institutions and non-financial companies have increased (or decreased), excluding price developments of bonds and money market paper.
Private sector credit flow as a % of GDP
Private sector credit flow, % of gross domestic product (GDP).

The private sector credit flow shows by how much debts of households, non-profit institutions and non-financial companies have increased (or decreased), excluding price developments of bonds and money market paper. Debts include only securities (excluding shares and derivatives) and loans, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
The private credit flow is calculated as a percentage of GDP.

Interpretation of the indicator:
A high credit flow to the private sector, consisting of non-financial corporations, households and non-profit institutions serving households, increases the vulnerability of these sectors to developments in the business cycle, interest rates and inflation. Strong price fluctuations in financial and non-financial assets may also have their origin in changes in the private credit flow.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +14 percent.
Households credit flow
Households sector credit flow as a % of GDP.

The households sector credit flow shows by how much debts of households and non-profit institutions have increased (or decreased), excluding price developments of bonds and money market paper. Debts include only securities (excluding shares and derivatives) and loans, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
The households sector credit flow is calculated as a percentage of GDP.

Interpretation of the indicator:
A high credit flow to households and non-profit institutions serving households increases the vulnerability of these sectors to developments in the business cycle, interest rates and inflation. Strong price fluctuations in financial and non-financial assets may also have their origin in changes in the credit flow.

Upper and lower limits:
The European Commission has set only an upper limit for the total private credit flow (including non-financial corporations): +14 percent.
Non-fin. corporations credit flow
Non-financial corporations sector credit flow as a % of GDP.

The non-financial corporations sector credit flow shows by how much debts of non-financial corporations have increased (or decreased), excluding price developments of bonds and money market paper. Debts include only securities (excluding shares and derivatives) and loans, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
The non-financial corporations sector credit flow is calculated as a percentage of GDP.

Interpretation of the indicator:
A high credit flow to non-financial corporations increases the vulnerability of these sectors to developments in the business cycle, interest rates and inflation. Strong price fluctuations in financial and non-financial assets may also have their origin in changes in the credit flow.

Upper and lower limits:
The European Commission has set only an upper limit for the total private credit flow (including households and non-profit institutions): +14 percent.
Private sector debt
The debt of the private sector includes the total debt of households, non-profit institutions and non-financial corporations. The debts includes only securities (excluding shares and derivatives) and loans, and are consolidated, i.e. debts within the same sector are not taken into account.
Private sector debt as a % of GDP
Private sector debt, % of gross domestic product (GDP).

The debt of the private sector includes the total debt of households, non-profit institutions and non-financial corporations. The debts includes only securities (excluding shares and derivatives) and loans, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Private debt is calculated as a percentage of GDP.

Interpretation of the indicator:
A high debt increases the vulnerability of the private sector to changes in economic conditions, interest rates or inflation. Part of the outstanding debt must be refinanced periodically. Rising interest rates may lead to higher periodic interest payments for borrowers. A worsening economic situation may persuade banks to tighten their conditions with respect to collateral. As a result households may receive lower mortgage loans with potential implications for the developments on the housing market and in the construction sector.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +133 percent.
Household sector debt as a % of GDP
The household sector debt includes the total debt of households and non-profit institutions. The debts include only loans, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Household debt is calculated as a percentage of GDP.

Interpretation of the indicator:
A high debt increases the vulnerability of the households to changes in economic conditions, interest rates or inflation. Part of the outstanding debt must be refinanced periodically. Rising interest rates may lead to higher periodic interest payments for borrowers. A deteriorating economic situation may persuade banks to tighten their conditions with respect to collateral. As a result households may receive lower mortgage loans with potential implications for the developments on the housing market and in the construction sector.

Upper and lower limits:
The European Commission has set an upper limit for total private sector debt (including non-financial corporations): +133 percent.
Non-financial corporations sector debt
Non-financial corporations sector debt as a % of GDP.

The non-financial corporations sector debt includes the total debt of households and non-profit institutions. The debts include only loans, bonds and money market paper, and are consolidated, i.e. debts within the same sector are not included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Non-financial corporations debt is calculated as a percentage of GDP.

Interpretation of the indicator:
A high debt increases the vulnerability of the non-financial corporations to changes in economic conditions, interest rates or inflation. Part of the outstanding debt must be refinanced periodically. Rising interest rates may lead to higher periodic interest payments for borrowers. A deteriorating economic situation may persuade banks to tighten their conditions with respect to collateral.

Upper and lower limits:
The European Commission has set an upper limit for total private sector debt (including households and non-profit institutions): +133 percent.
Government debt as a % of GDP
Government debt, % of gross domestic product (GDP).

The consolidated debt of the general government (valued at the nominal value) excluding other accounts payable and the debt on financial derivatives, expressed as a percentage of GDP. For the general government the public debt is consolidated. This means that transactions between government-units are eliminated.
Due to differences in valuation method the sum of the debt-titles of the public debt (nominal) is not equal to the sum of the debt-titles in the national accounts (market value). The debt consists of the titles: currency, short-term securities, bonds, short-term loans and long-term loans. General government debt (also known as EDP-debt) is one of the components of the Stability and Growth pact. EDP stands for Excessive Deficit Procedure.


Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
Government debt is calculated as a percentage of GDP.

Interpretation of the indicator:
A high government debt reduces the government’s room to manoeuvre, as it has to reserve a large part of it revenues yearly for interest payments and thus may not be able to implement counter-cyclical policies, or provide guarantees to financial institutions in the event of a financial crisis.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +60 percent.
Unemployment rate; 3-year average
Unemployment rate, international definition, %, three-year moving average.

The unemployment rate is defined as the unemployed labour force as a percentage of the total labour force.

The international definition (ILO definition) of unemployment is used here. This includes all persons between 15 and 75 years of age without paid work who are actively looking for work and are also available to start work. The national definition of unemployment for the Netherlands includes persons aged between 15 and 65 years without paid work, or with paid work for less than 12 hours per week, who are actively looking for work for 12 hours or more per week and also available to start work.

Sources:
The data are compiled by the Statistics Netherlands (CBS), which publishes the unemployment rate for the Netherlands monthly, according to both the international and the national definition.

Calculation of the scoreboard indicator:
Based on the monthly unemployment rate, a moving three-year annual average is calculated.

Interpretation of the indicator:
Alongside economic growth and inflation, unemployment is one of the main macroeconomic indicators. A rise in unemployment, other than being a social problem, also means that government expenditure on social benefits increases and tax revenues decline. Furthermore, an increase in unemployment has a negative impact on consumption. A high and persistent unemployment may indicate a lack of adaptability of an economy.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +10 percent.
Total financial sector liabilities
Total financial sector liabilities - % change on one year previously.

This indicator shows the total of all financial liabilities of the financial sector. This includes deposits, loans, bonds, equity, insurance-related. The debt is not consolidated, i.e. debts within the financial sector are included.

Sources:
The data are from Statistics Netherlands' national accounts.

Calculation of the scoreboard indicator:
The total liabilities of the financial sector are calculated. Subsequently, the annual percentage change is calculated.

Interpretation of the indicator:
The size of the financial sector liabilities is an indicator of the level of exposure to potential financial shocks in the real economy. A change in financial sector liabilities indicates a change in vulnerability to changes in the economy, interest rates or inflation.

Upper and lower limits:
For this indicator, the European Commission has set only an upper limit: +16.5 percent.
Activity rate
Activity rate (15-64), 3-years change
This indicator shows the change in activity rate expressed in percentage points compared to three years previously. The activity rate is defined as the active population as a percentage of the total population in the age category 15-64. The active population is defined as the sum of the employed and the unemployed labour force. The employed labour force consists of people who get paid for working one or more hours per week. The unemployed labour force consists of people who are actively looking for work (one or more hours per week) and directly available.

Sources:
The figures are compiled by Statistics Netherlands.

Calculation of the scoreboard indicator:
The activity rate is published in this table every quarter. Subsequently, a moving four-quarter average and the resulting change on three years previously are calculated. The change on three years previously in percentage points is published.

Interpretation of the indicator:
The activity rate shows which percentage of the population supplies its labour on the labour market. A positive change indicates that more people are available for work, whereas a drop indicates the opposite.

Upper and lower limits:
The European Commission has set a lower limit of -0.2 percentage points.
Activity rate (15-64), %
The activity rate is defined as the active population as a percentage of the total population in the age category 15-64. The active population is defined as the sum of the employed and the unemployed labour force. The employed labour force consists of people who get paid for working one or more hours per week. The unemployed labour force consists of people who are actively looking for work (one or more hours per week) and directly available.

Sources:
The figures are compiled by Statistics Netherlands.

Calculation of the scoreboard indicator:
The activity rate is published in this table every quarter. Subsequently, a moving four-quarter average is calculated.

Interpretation of the indicator:
The activity rate shows which percentage of the population supplies its labour on the labour market. A positive change indicates that more people are available for work, whereas a drop indicates the opposite.
Long-term unemployment,3-yr change,p.p.
Long-term unemployment, 3-years change, percentage points.

This indicator shows the change in the long-term unemployment rate expressed in percentage points compared to three years previously. The long-term unemployment rate is defined as the percentage of the active population which is unemployed and has looked for work for a year or more. The active population is the sum of the number of employed and the number of unemployed people. A person is considered employed if he or is paid for at least one hour of work per week. A person is considered unemployed if he or she does not work, but is actively looking for work and available.
Sources:
Data are compiled by Eurostat, using Statistics Netherlands's underlying data from the Labour Force Survey.

Calculation of the indicator:
The long-term unemployment rate is the number of long-term unemployed people as a percentage of the total active population. Subsequently, the change on three years previously expressed in percentage points of either the four-quarter moving average or the annual figure is published.

Interpretation of the indicator:
The long-term unemployment rate shows how large the group of people is which has not been able to find work for a long time. A high long-term unemployment rate indicates that there are substantial persistent mismatches on the labour market. An increase in long-term unemployment indicates that these mismatches are getting more substantial.

Upper and lower limits:
The European Commission has set an upper limit (+0.5 percentage points).
Youth unemployment
Youth unemployment, 3-yrs change in p.p
Youth unemployment, 3-years change in percentage points.

This indicator shows the change in the youth unemployment rate relative to three years previously, expressed in percentage points. The youth unemployment rate is defined as the number of unemployed people in the age category 15-24 as a percentage of the total active population in the same age category. The total active population is the sum of the employed and the unemployed labour force. A person is considered employed if he or is paid for at least one hour of work per week. A person is considered unemployed if he or she does not work, but is actively looking for work and available.

Sources:
Figures are compiled by Statistics Netherlands.

Calculation of the indicator:
First, youth unemployment is determined by expressing the number of unemployed people in the age category 15-24 as a percentage of the total active population in that age category. Then, the four quarter moving average of the youth unemployment rate is calculated. Subsequently, the change in percentage points relative to three years previously is calculated.

Interpretation of the indicator:
A high youth unemployment rate indicates that it is hard for youngsters to find work. Usually, youth unemployment tends to respond faster to changes in the business cycle than unemployment in other age categories. If youth unemployment increases, this is often a sign that demand on the labour market is decreasing.

Upper and lower limits:
The European Commission set an upper limit (2.0 percentage points).
Youth unemployment, %
This indicator shows the moving four quarter average of the level of the youth unemployment rate. The youth unemployment rate is defined as the number of unemployed people in the age category 15-24 as a percentage of the total active population in the same age category. The total active population is the sum of the employed and the unemployed labour force. A person is considered employed if he or is paid for at least one hour of work per week. A person is considered unemployed if he or she does not work, but is actively looking for work and available.

Sources:
Figures are compiled by Statistics Netherlands.

Calculation of the indicator:
First, youth unemployment is determined by expressing the number of unemployed people in the age category 15-24 as a percentage of the total active population in that age category. Then, the four quarter moving average of the youth unemployment rate is calculated.

Interpretation of the indicator:
A high youth unemployment rate indicates that it is hard for youngsters to find work. Usually, youth unemployment tends to respond faster to changes in the business cycle than unemployment in other age categories. If youth unemployment increases, this is often a sign that demand on the labour market is decreasing.