Flowork Insights: Labour Market in the Netherlands, Q2 2025

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In the second quarter of 2025, the Dutch labour market remains exceptionally tight. Unemployment is at a historically low level, while the number of job vacancies continues to exceed the number of job seekers. At the same time, slowing GDP growth and rising wage pressure present new strategic challenges for businesses.
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Stable yet tight labour market
According to data from the Centraal Bureau voor de Statistiek (CBS), the unemployment rate in the Netherlands in the second quarter of 2025 stood at 3.8%. This is one of the lowest levels in recent decades, corresponding to around 388,000 people out of work.
At the same time, the number of job vacancies fell slightly by about 7,000, reaching 389,000. This means that on average there is still roughly one unemployed person per vacancy. Despite minor adjustments in the indicators, the Dutch labour market remains highly strained, with demand for workers clearly exceeding their availability.
Macroeconomic backdrop: slower growth momentum
In the second quarter, the Dutch economy recorded GDP growth of 0.1%, a slowdown compared with the 0.3% seen in the first quarter. According to Reuters, the pace of growth was weakened primarily by a decline in private consumption (-0.4%), though this was partly offset by an increase in exports (+0.9%).
This indicates that, despite the resilience of the labour market, household purchasing power remains under pressure, largely due to high living costs and persistent inflation.
Structural pressures and demographic challenges
Analyses by the OECD point out that labour shortages remain one of the main constraints on the Netherlands’ economic growth. At the beginning of the second quarter, nearly one-third of companies reported staff shortages as the key barrier to their operations.
Structural factors influencing the labour market include:
- an ageing population and a shrinking share of people of working age,
- a high proportion of part-time employment (a hallmark of the Dutch labour market),
- skills mismatches between candidates and employers’ needs – particularly in technology, healthcare, and engineering sectors.
Risk factors for the economy
Looking at the medium term, two key risk areas stand out:
Declining private consumption, which reduces domestic demand and overall growth momentum.
Rising wage pressure, driven by low unemployment and strong competition for talent.
On the one hand, higher wages support household incomes, but on the other, they may further strain companies’ operating costs and profitability.
Implications for business and HR
For companies in the Netherlands, the current situation requires the implementation of more flexible and long-term HR strategies. Essential actions include:
- investing in recruitment processes and employer branding,
- developing internal mobility and employee upskilling programs,
- activating underrepresented groups in the labour market,
- promoting diversity and inclusion to broaden the talent pool,
- adopting flexible forms of employment to respond more quickly to market changes.
How Flowork supports business
At Flowork, we understand the challenges facing organisations in the Netherlands – from wage pressures to shortages of qualified staff. That is why we combine an analytical perspective on the labour market with hands-on operational expertise. Our recruitment solutions enhance organisational flexibility and help companies achieve their strategic goals in a dynamic economic environment.
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Natalia Roszkowiak
Marketing Project Manager
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