There is a shortage in the labor market. This means that more and more employees are getting a contract with the prospect of permanent employment, but more and more people are also deciding to become self-employed. This is evident from the flexbarometer, a study by TNO and CBS.
People are looking for certainty, says Jessie Koen, senior researcher at TNO. “In addition, employees in the current labor market have more say. They may demand that they receive a temporary contract that offers the prospect of permanent employment. In some sectors there is certainly a chance that the employer will go along with this. He doesn’t just want to lose a good employee.”
There is also another movement opposite the temporary contracts: the rise of the self-employed. For example, there are more and more independent entrepreneurs in the Netherlands. Something that seems to be at odds with the search for certainty. “However, this is not the case,” says Koen. “It is relatively easier to get assignments in a tight labor market. There are not enough people to do all the work, so a self-employed person can take over. And if the business fails, many people feel that they can easily find a new job.”
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Self-employed on a voluntary basis or as an obligation?
The switch to entrepreneurship is therefore a popular career switch. A total of 16,000 people made the transition from on-call worker to self-employed person between 2021 and 2022. A year earlier there were 9,000, which is an increase of 70 percent. “This can be a voluntary choice, as you often see in healthcare. A self-employed person here often gets paid better than a permanent employee. In addition, this construction also offers more independence and freedom.”
But Koen says that some people do not voluntarily become entrepreneurs. For example, there is a chance that the platform economy has contributed to the growing number of self-employed people without employees. “This economy includes companies such as Deliveroo. The employees are obliged to become independent entrepreneurs. They are not employed, but receive orders from these companies.”
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It remains to be seen whether young people will also benefit from the tight labor market next year
Older people more likely to have a permanent contract
Young people (15 to 21 years old) in particular became self-employed last year. In total about 24,000, an increase of 41 percent. “The good news is that more young people are going to work. But we see that they generally benefit less from the tight labor market. They are less likely to receive a flexible contract with a view to permanent employment than older employees. Some then decide to become self-employed or settle for a temporary contract with no prospect of a permanent contract.”
In general, the number of people with a flexible contract that offers them the prospect of a permanent job is increasing in all age groups above 25 years. This also applies to people aged 50 to 70. A total of 59,000 elderly people have been given a temporary contract with a view to becoming permanent. That is an increase of 15 percent compared to last year. “So you really see that there is a tight labor market and employers have to do their best to keep employees. It remains to be seen whether young people will also benefit from the tight labor market next year. ”
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