In June, 3.6 million people aged 15 to 74 did not have paid work for a variety of reasons. Aside from the unemployed, 3.2 million people were not looking and/or immediately available for work; they are not counted towards the labour force. They are mainly retirees and people unable to work due to illness or disability. From April through June, the number of people outside the labour force declined by an average of 5 thousand per month.
|Year||Month||Unemployment (15 to 74 yrs, seasonnally adjusted) (x 1,000)||WW unemployment benefits (15 yrs up to state pension age) (x 1,000)|
UWV: 152,600 WW benefits in June
At the end of June 2023, UWV provided 152,600 thousand current WW benefits. This is 1,700 more than in the previous month (+1.1 percent). Compared to June last year, there were 8,100 fewer WW benefits (-5.0 percent). In June 2023, 21,600 thousand benefits were terminated and 23,300 thousand new benefits were granted.
Between May and June 2023, the increase in WW benefits was largest among persons under the age of 35 (+2.5 percent) and among persons aged 35 to 44 years (+2.3 percent). Among 45 to 54-year-olds, the increase amounted to 1.1 percent. Only in the 55-and-over age group did the number of WW benefits decrease, by 0.7 percent.
Slight drop in unemployment over past three months
In June, there were 4 thousand fewer unemployed than three months previously (i.e. a modest decrease of 1 thousand per month on average). This decline is the result of underlying flows between the employed, unemployed and non-labour force. This is visualised in the diagram below. The chart below the diagram shows how these different flows have developed over the past few months.
The graphics show there are two flows that can reduce unemployment. The first flow is when unemployed people find a job; the second flow is when unemployed people stop seeking work and withdraw from the labour market.
Unemployment fell in June (relative to three months previously) because the number of people in work who became unemployed was smaller than the number of unemployed who found a job. The balance stood at -34 thousand in June.
There are also two opposite flows, which can increase unemployment. These occur when employed people lose their jobs, and when people who did not enter the labour market previously and have started seeking work. If they do not find work immediately, they become part of the unemployed labour force. Unemployment increased due to the inflow of unemployed from outside the labour force. This increase amounted to 30 thousand on balance.
Every month, CBS publishes figures on the labour force in accordance with guidelines of the International Labour Organization (ILO). 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.