Unemployment rises to 404 thousand in June

At the end of June, the Employee Insurance Agency (UWV) recorded 301 thousand current unemployment (WW) benefits, the same number as in May.

Unemployment is measured on the basis of sample surveys. In order to minimise fluctuations due to sampling, CBS uses the average trend over the previous three months as a guideline. Since recent measures against coronavirus have had a major impact on the labour market, this news release addresses the developments over the past few months separately. Contrary to regular news releases, the figures here are provisional and may still be adjusted over the next few months.

Number of both unemployed and employed up in June

During the first months following the outbreak of the coronavirus crisis, the labour force decreased significantly. Of those who lost their jobs, relatively few became unemployed because most were not looking for work and/or were not available. People who do not meet these conditions are not counted towards the labour force.

In June, the labour force grew by 119 thousand. More people entered the labour market who did not look for work or were not available in the preceding months, and therefore did not belong to the labour force. Some of them found a job again, but a larger number became unemployed. The number of people in work increased by 45 thousand and the number of unemployed surged last month, by 74 thousand. In April and May, the increase in the number of unemployed was less substantial: 41 and 16 thousand respectively.

Unemployment rate rising exceptionally fast

There were 404 thousand unemployed in June, equivalent to 4.3 percent of the labour force. This was still 3.6 percent in May. The highest increase in unemployment was seen among 15 to 24-year-olds: from 9.5 to 10.7 percent. Among 25 to 44-year-olds, the unemployment rate went up from 2.9 to 3.7 percent, and from 2.2 to 2.6 percent among the over-45s.

In November 2008 - at the onset of the financial crisis - the unemployment rate also stood at 3.6 percent. Then, it took seven months before it had risen to 4.3 percent. Now, this increase occurred from one month to the next.

The higher number of employed and unemployed is the result of underlying flows between the active, unemployed and inactive labour force. In the previous three months, these flows were greater than ever measured on a monthly basis by CBS.

UWV: Same number of WW benefits in June

The number of current WW benefits remained virtually unchanged in June compared to the previous month. At the end of June, UWV provided 301 thousand WW benefits. For the first time since March, the number of WW benefits did not increase. A total of over 60 thousand current WW benefits have been added since the end of February.

UWV: 33 thousand new WW benefits in June

UWV registered 33 thousand new WW benefits in June. This is less than in May, when there were 42 thousand new benefits. The peak was in April, with almost 74 thousand new benefits. April had one reporting week more than May and June, but the average inflow per week was also highest that month. In April, there were 14.7 thousand new WW benefit recipients per week, while this number was 10.5 thousand in May and 8.3 thousand in June.

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. In the previous three months, unemployment rose more sharply than the number of benefits.