40,000 new jobs thanks to Flemish recovery plan, but mainly in bottleneck sectors | Economy

In 2020, the Flemish government allocated 4.3 billion euros to help our region through the aftermath of corona. 825 million euros of this went to investments in the labor market.

Job growth as a result of the program is mainly in healthcare and construction, sectors with many shortage occupations. The researchers therefore warn that a great deal of attention will have to be paid to training and intake if Flanders wants to be able to realize the ambitions of the plan.

As a result of Flemish Resilience, some 6,000 vacancies will be added in the coming years, on top of the expected annual recruitment requirement of 18,813. For construction, this is an additional requirement of 8,151 on top of the already expected demand of 9,043.

“The Flemish Resilience program therefore provides a number of incentives to guide job seekers and talent towards jobs,” says Prime Minister Jan Jambon. “These projects should improve a number of structural weaknesses in the labor market, such as the increase in the number of people with disabilities and training participation. That is why 286 million euros was reserved for the training and career offensive.”

Flanders still has a high productivity per inhabitant compared to the eurozone, but the growth of several productivity indicators has fallen sharply over the past 20 years, Idea notes.

Flemish Resilience focuses on direct productivity-enhancing investments. Citizens are the main beneficiaries, including access to training and improved transport infrastructure. An estimated EUR 1,766 million will benefit citizens. The private sector would receive 1,565 million euros, followed by governments and knowledge centres.

In order to obtain an optimal effect of the investments on productivity, the researchers draw attention to the shortage on the labor market. This requires additional labor market-oriented investments. For a leverage effect on private investments, there is a need for “a clear and stable regulatory framework that fits within a coherent vision in the field of digitization, mobility, energy and circular economy.”

Finally, the researchers also point out the importance of smooth mobility. “Traffic jams reduce labor productivity due to the long commute times and cause higher transport costs. Also according to an OECD productivity report, Belgium has a low quality of transport infrastructure, with a high pressure of traffic jams on productivity.”