Unemployment up by 4.0 percent in July

A total of 404 thousand people were unemployed in July. Unemployment increased by an average of 2 thousand per month over the past three months. The number of people in paid employment fell by an average of 11 thousand per month. Statistics Netherlands (CBS) reports this on the basis of newly released figures. At the end of July, the Employee Insurance Agency (UWV) records included 200 thousand current unemployment (WW) benefits.

In addition to the 404 thousand unemployed persons, 3.2 million people were not actively seeking work or not immediately available for work in July. These people are not counted as part of the labour force. Many of them are retirees or are unable to work due to illness or occupational disability. Averaged over the past three months, the number of people who are not part of the labour force has risen by an average of 9 thousand per month.

Particularly men were more likely to be unemployed in July

Unemployment rose in July, particularly among men, the rate increased from 3.8 to 4.0 percent. The increase was most pronounced among men aged between 15 and 45. Unemployment among women fell from 4.0 to 3.9 percent. Unemployment among young people is relatively high for both men and women. These are mostly secondary school pupils and students.

Employee Insurance Agency (UWV): increase in recipients of unemployment benefit in July

The UWV recorded 199.7 thousand recipients of unemployment benefit (WW) at the end of July. This put the number of recipients higher than in the previous month (up by +1.4 percent). A total of 30.4 thousand new people were granted unemployment benefit and 27.7 thousand benefits were terminated in July. The number of recipients of unemployment benefit increased by 2.7 thousand to 199.7 thousand.

At the end of July, the number was higher in 27 of the 35 labour market regions, month on month. The increase was the most significant in Twente (+7.0 percent), Achterhoek (+3.5 percent) and Gorinchem (+3.4 percent). The most significant decreases were seen in Zuid-Limburg (-1.6 percent), Flevoland (-1.0 percent) and Zuid-Holland Centraal (-0,8 percent).

More people became unemployed than found work

Unemployment can increase or decrease due to four different changes in people’s circumstances. There are also two groups of people moving in the opposite direction, which can contribute to higher unemployment. The first group is made up of employed people who lose their job (125 thousand in July) and the second group is made up of people who were previously unavailable for work and decide to seek work (119 thousand in July). If people in these groups do not find work immediately, they become part of the unemployed labour force. In July there were 244 thousand people who were unemployed but had been in work three months earlier, due to these factors.

There are also two groups of people moving in the opposite direction, which can contribute to lower unemployment. The first is when an unemployed person finds a job (141 thousand in July). The second is when an unemployed person stops seeking work and leaves the labour market (95 thousand in July). A total of 236 thousand people were no longer unemployed in July, who had been unemployed three months earlier.

The number of unemployed people has risen by an average of 2 thousand per month over the past three months, because more people became unemployed than found work.

Every month, CBS publishes figures on the labour force in accordance with guidelines of the International Labour Organization (ILO). The indicators described (employed labour force and unemployed labour force) are used around the world to describe cyclical developments on the labour market. In addition, the Employee Insurance Agency (UWV) publishes its own monthly figures on unemployment benefits. The figures released by UWV do not correspond precisely with the labour force indicators.