Job numbers plummet

• 140 thousand fewer jobs in the third quarter than in third quarter 2008
• Also dip compared to second quarter
• Far fewer jobs in the, growth in the public sector
• Labour costs up by 1.8 percent
• Actual wage increase lags behind collective wage increase

In the third quarter of 2009 there were 140 thousand jobs of employees less than in the third quarter of 2008. This is the biggest drop in over 25 years. Compared to the second quarter, and taking seasonal effects into account, job numbers were down by 50 thousand. The labour costs per full-time equivalent job were up by 1.8 percent on the year before according to the latest figures by Statistics Netherlands.

There were almost 7.9 million jobs in the third quarter, down 1.7 percent on the year before. Hardest hit were the business services with a job loss of 101 thousand. These mainly consisted of temp jobs through temp agencies. This sector cushioned the first heavy blow of the job losses.

The manufacturing industry, construction, hotels and restaurants and transport also faced increasing job losses. However, in the public sector the number of jobs continues to grow, namely by 46 thousand. Much of this is realised in health care and social work, where job numbers are up by 33 thousand compared to 2008. Job losses are limited by part-time unemployment benefits. The jobs of employees coming under the part-time unemployment regulation are counted as full jobs.

In comparison with the second quarter, the number of jobs fell by 0.6 percent. This is marginally less than job losses in the second quarter. It is the third quarter in a row that jobs are lost. Here too the private sector has negative and the public sector positive growth. The job losses in the third quarter happen while the economy is shows signs of recovery. Employment in the Netherlands always reacts with some delay to economic up or downturns.

The wages of employees per FTE were up by 1.8 percent in the third quarter on the same quarter of 2008. This rise was smaller than in the second quarter when wages increased by 2.6 percent. The actual wage increase of 1.8 percent lags behind the collectively negotiated (CAO) wage increase of 2.3 percent. Cuts in the variable remuneration elements such as bonuses, commissions and overtime pay play a role. Labour costs per FTE including the premiums payable by the employer increased by 1.8 percent, the same rate at which the wages increased. Pension premiums payable by the employer rose while those for unemployment and health care fell.