Unemployment in the province of Drenthe rose slightly in August. This means that the number of unemployment benefits in Drenthe is higher than a year ago. Despite the increase in the past year, unemployment benefits remain at a historically low level.
The tightness on the labor market will also continue for the time being. Changes in the size and composition of the population will cause the available number of people offering to work to stagnate from 2025, the UWV expects.
At the end of August, 4,254 residents of the province of Drenthe received unemployment benefits. In August, the number of unemployment benefits in Drenthe increased by 2.6 percent (108 benefits). Compared to last year, the unemployment benefit in Drenthe is 1.6 percent (68 benefits) higher. In the past year, unemployment benefits rose mainly in construction, banking and insurance, commercial services and wholesale. Unemployment benefits fell in various parts of the industry, cleaning and employment agencies in the past year.
The number of unemployment benefits also increased nationally last month. At the end of August, the Netherlands had 156,389 unemployment benefits (1.6 percent of the working population). That is 4,422 more than in July. Last year, the Netherlands had 151,730 unemployment benefits in August. This means that unemployment benefits in the Netherlands increased by 4,659 benefits on an annual basis.
The increase in unemployment benefits in the past year does not mean that the tight labor market is a thing of the past. In November 2022, the number of unemployment benefits reached a low point. Despite the increase in the past year, the number of unemployment benefits in the province of Drenthe is historically at a very low level. Even now that the economy is faltering, the demand for personnel remains high.
The number of vacancies even increased again in Drenthe in the second quarter of 2023. Although the Dutch economy is officially in a mild recession, with a slight contraction in the past two quarters, this hardly affects the labor market. The staff shortage is expected to continue for the time being. Many of the causes of the tight labor market are structural in nature, such as an aging population and the demand for certain job requirements does not match the qualities of job seekers.
The size and composition of the Dutch population will change in the coming years. Although the Dutch population is growing, Drenthe is experiencing population decline. Where the population is growing, this is mainly due to immigration. More people settle in the Netherlands than leave our country.
On the other hand, fewer young people will enter the labor market in the coming years. As a result, the available labor supply is expected to stagnate from 2025. This, in combination with a persistently high demand for labor, could lead to a structurally tight labor market. The staff shortages are therefore not over anytime soon. Creative solutions such as tapping into new talent, organizing work differently and retaining people in the labor market remain important, according to the UWV.