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Unemployment in the Netherlands

Unemployment in the Netherlands is not a new phenomenon. Many people do not find jobs at any given time making it hard to sustain their families. There are many causes of unemployment in this nation but one thing is evident, the number of unemployed people has been rising over the last decade. Things got worse in the year 2008 because of recession that affected most nations. The government of Netherlands introduced unemployment policies which has helped many people who do not find work.

This paper will look at unemployment over the last decade, how inflation compared to unemployment, unemployment policies and impact of recession on unemployment rates in the Netherlands. Unemployment rate in the Netherlands has not been consistent over the last decade. At times, there is an increase in the number of people without employment while at times the rate reduces. According to the international monetary fund statistics, the percentage of unemployed people in this nation was above six percent in 1995.

From then until the year 2001, the economy of this nation was better and unemployment rates had reduced to just over two percent. The economy then had sharp twists within the next few years with considerable increase and reduction in unemployment rates with the most affected years being 2005 and 2006. Inflation rate in the Netherlands has been lower than the unemployment rates over the last decade. In these years, the rate of inflation at times corresponded to the rate of unemployment. This was for example in the years 2005 and 2006; employment rates increased as inflation increased (IMF, 2009).

Ripples of recession in the year 2008 were felt all over the world. Netherlands was not an exception to these credit crunches. Since 2008 when recession started, the Dutch economy started to slow. Labour force went down as major trade sectors in this nation were severely affected. Job vacancies in this sector decreased drastically leading to a slight increase in the unemployment. Unemployment rate in the year 2009 rose as expected because of the falling production which limited the vacancies for employment.

This year, the unemployment rate stands at 4% so far (CPB Netherlands Bureau for Economic Policy Analysis, 2009). Unemployment is an issue that most western European nations including the Netherlands have been taking with a lot of effort. Youth unemployment in the Netherlands is taken with a lot of seriousness. All unemployed youths benefit from unemployment benefits such as the unemployment insurance. These people are paid up to 70% of their previous salary. Though the benefit is taxable, it is of invaluable use to the youths as they are able to continue with their lives as they search for jobs.

The benefit is paid for about six months but is dependent on the employment record (oecd. org, 2009). Unemployment benefits are not just available. There are conditions and regulations to be followed for a person to receive such benefits. One is supposed to have worked for at least twenty six weeks for the last twelve months in the preceding employment to receive the basic benefits. For the extended benefit option, one has to have worked for four years in the past five years. If by any chance a person had children which he was caring for, then benefits are calculated as well.

Contribution is vital for a person who wishes to get these benefits in case he is retrenched. One has to contribute at least for fifty two weeks in the preceding employment for basic benefits. On the other hand, to get extended benefits, one has to contribute for at least three years in the last five years of the preceding employment (oecd. org, 2009). Unemployment in the Netherlands has been a major issue. This is affected by many factors and in the last year, this was imminently impacted by recession. Inflation rates have corresponding to unemployment rates.It is encouraging how the Dutch government handles this issue by providing benefits to the unemployed people.


International Monetary Fund. (2009). Netherlands unemployment rate. Retrieved 11 December 2009 from, http://www. indexmundi. com/netherlands/unemployment_rate. html CPB Netherlands Bureau for Economic Policy Analysis. (2009). The Netherlands is in deep recession. Retrieved 11 December 2009 from, http://www. cpb. nl/eng/news/2009_12. html Oecd. org. The Netherlands. Retrieved 11 December 2009 from, http://www. oecd. org/dataoecd/10/24/29736028. PDF

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