‘Please no more jobs’, what’s going on in the labor market?

What are the solutions?

Labor market economists cite various solutions: making part-time workers work more through more and cheaper childcare and tax rebates. But also (young) migrants from abroad to fill the vacancies here.

On the latter, the Labor Inspectorate recently criticism. For example, employers in particular would benefit from labor migration, while society bears the costs. That discussion is not over yet, by the way, because the European Commission wants to make it easier for people from outside the EU to work here.

According to experts, productivity also needs to be tinkered with. Not only by influencing the study choice of young people, but also by the automation and robotization of work. At the moment, the digital QR code, which made its appearance during corona, is also used on tables for orders to compensate for the staff shortage in the catering industry.

Experts do indicate that the shortage is not easy to solve. Wilthagen: “A solution for the labor market is difficult. And there are difficult or unsociable aspects to the things that you can do. There is not always support for a measure.”

Why was no action taken earlier?

“We are experiencing the effects, but there is little concrete action,” says Professor Wilthagen. He is curious whether there will be a national plan, because then a kind of delta plan for the labor market will have to be created. “The new cabinet was already difficult to come up with and major tasks were formulated at the time. But a labor market transition was missing.”

According to Wilthagen, the Minister of Social Affairs and Employment, the trade unions and employers should enter into discussions to bring relief to the labor market. “Like the corona policy at the time. But the big question is whether that will also be the tenor for the labor market.”

Minister Van Gennip of Social Affairs and Employment considers the shortage on the labor market “a major problem”. She says she will work with employers and the cabinet to make people work more hours or to change schedules, so that people can combine work and private life.

Will the tightness remain?

The Central Planning Bureau wrote earlier that the severe shortage in the labor market will continue for the time being. But a wave of bankruptcy could cause the shortage to ease, according to CBS chief economist Van Mulligen. Minister Van Gennip expects the shortage on the labor market to stabilize in the near future.

Professor Wilthagen points to possible bad times for the economy. “There is talk of a recession again. So if the economy collapses or has to be closed, such as during corona, the problem seems to disappear for a while.”

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