Dutch Temporary Employment Market Update

Mark Korevaar our consultant managing the role

In recent years Dutch employers have had a fickle relationship with temporary staffing. But in 2022 it is clear that employers are favouring hiring permanent employees for their businesses, as opposed to temporary employees and contractors. Undoubtedly this is a long-term solution to retain talent, as people often value the security offered by a permanent role during uncertain times. However it isn’t always the right decision for every business.

Recent history of the Dutch labour market 

To understand the implications of the current talent shortage in the Netherlands, we must review recent history.  Back in 2007, labour market economists and policymakers were concerned that there would be shortages of workers in the Netherlands. The Maastricht research institute ROA predicted there would be a shortage of workers in sectors such as construction, finance, accounting and healthcare. They anticipated this shortage would continue to grow until at least 2012. However, the 2008 financial crash completely upturned all predictions from professionals.

Likewise, the pandemic tore through any predictions the economists had to offer. Throughout 2019, the Dutch economy was doing extremely well. Every organisation had huge growth plans and expected to report hefty profits. Much like the rest of the world, nobody expected the whole country to go into lockdown three months later, but it happened and had a huge impact on society and the economy.

Like many global economies during the pandemic, the Dutch economy experienced an extraordinary 3.7% contraction of gross domestic product (GDP) in 2020. However, 2021 painted a much brighter picture, particularly when you consider the Dutch private equity market, which is scorching hot. With the first three quarters of 2021 being the best environment for PE deal making ever, and this form is anticipated to continue well into 2022.

Dutch economic landscape in 2022

Perhaps drawing upon the 2008 financial crash and the COVID-19 pandemic is too extreme. But can a world defining event happen again in quick succession? I hope not, but I think everyone agrees that we are in an intense period of uncertainty. Whilst the Dutch economy is breaking records: record low unemployment rate, record breaking stock market, and record-breaking housing prices, there are a number of economic factors which could stunt our economic outlook.

According to the Institute of International Finance, global debt rose to record levels in 2021. In total, $303 trillion (€268,000 billion) worth of loans were outstanding from companies, households and governments. This represented an increase of $10trillion dollars from a year earlier. Also, during a press conference, the President of the European Central Bank, Christine Lagarde, talked about a sky-high inflation. Earlier this year, inflation in the Eurozone rose to 5.1%, a new record. But in the Netherlands, inflation is even higher at 7.6%. Certainly, this will have a tremendous impact on the disposable income available to consumers and the wider economy.

Moreover, experts warn that the cost of living and inflation are only going to intensify. Especially when you consider the impact of the conflict between Ukraine and Russia

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Could a temporary workforce be a solution? 

As a society and business community, we must adapt and future-proof our businesses. And one option available to you is to hire temporary employees. 

Temporary workers offer a dynamic solution to changing market forces. As a business leader, you must be agile and respond to all kinds of situations. Nobody has a crystal ball. And with the unpredictable economic outlook in the wake of the pandemic, conflict in Eastern Europe, and the soaring cost of living, it is too difficult to predict exactly what could happen. 

Ultimately, whether you want to scale up or down, the use of temporary workers is the solution in both situations. 

What does this mean for finance recruitment in the Netherlands?

Either way, the finance sector will be resilient and professionals will continue to be in demand. It’s going to be a good year for finance professionals looking to move roles in 2022. In a nutshell, the growth of GDP, combined with increased private investment, means businesses will be keen to grow their workforces. In light of this, where will Marks Sattin Amsterdam focus our attention? 

We will be working on temporary and permanent positions in the financial services and commercial finance markets. We will also be sourcing finance and accounting professionals at all levels of their career. Armed with this knowledge, we will continue to be reactive to the market as we proactively provide our recruitment and search services to our clients and candidates, and offer career advice to anyone looking to move roles or expand on their teams - find out more on our team here.


23/03/22
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