WHY INVEST IN HOLLAND? Labor Market Inventory

Transcription

1 WHY INVEST IN HOLLAND? Labor Market Inventory

2 Introduction Netherlands Foreign Investment Agency (NFIA) The NFIA (Netherlands Foreign Investment Agency) is an operational unit of the Dutch Ministry of Economic Affairs. The NFIA helps and advises foreign companies on the establishment, rolling out and/or expansion of their international activities in the Netherlands. The NFIA was established more than 35 years ago, and has since then supported thousands of companies from all over the world in the establishment or expansion of their international activities in the Netherlands. Besides its headquarters in The Hague, the NFIA has its own offices in the United Kingdom, Turkey, North America, Asia, the Middle East and Brazil. Additionally, the NFIA works together with Dutch embassies, consulates-general, and other organizations representing the Dutch government abroad, as well as with a broad network of domestic partners. Please be sure to stay in touch with your NFIA representative in order to keep up to date with any changes in the information which may occur over time and to visit your regional NFIA website for the latest news on business and investment opportunities in the Netherlands (all NFIA website addresses can be found on The information contained in these fact sheets has been compiled with great care by the Netherlands Foreign Investment Agency and is accurate to the best of its knowledge at the time of compilation. However, this document is provided for informational purposes only and no rights can be de rive d from it. Com pile d on 23 Apr

3 WHY INVEST IN HOLLAND? Table of contents Labor Market Inventory Labor force Temporary labor Employment by industry Unemployment rate Population Composition of the population Total Labor Force Size of the labor force Labor force by region Composition of the labor force by age and gender Employment rate Composition of the labor force by nationality Education and Labor Force School attendance (full-time education) per type 2012/2013 Primary schools Secondary schools Vocational education Higher education Higher professional education enrollment 2013/2014 International education Education and labor force Educational attainment labor force (persons of 15 to 65 years old) 2010 Further online information Multilingualism Ability to speak another language well enough for conversation (% by country) Three most widely spoken languages apart from the mother tongue (% by country) Labor Productivity Temporary Labor TWAs play an important role in the Netherlands Legislation supports TWAs as a serious alternative Unemployment Rate Unemployment rate in percent of labor force in EU Countries

4 Labor Market Inventory The Netherlands has a population of nearly 17 million people. The current and projected population growth is high compared to international standards, which is a promising sign for the future availability of Dutch employees. During the first decade of the 21st century, the relative population growth in the Netherlands was higher than in the European Union as a whole. Labor force The present labor availability matches the needs of businesses, given the composition of the Dutch population and available workforce. A high proportion of the population is in the economically "active" ages (15-64 years). Analysis of the labor force shows that many recent graduates from universities and higher vocational training institutions are specialized in the fields of technology or economics. Moreover, the majority of Dutchmen speak one or more foreign languages. T emporary labor The composition of the Dutch labor force has a relatively high proportion of young people participating in the labor force. They are increasingly hired as temporary employees. Besides these temporary employees, there is also a trend towards using job pools (several companies and organizations sharing the same employees) to increase the flexibility of labor. Employment by industry Like in most European countries, the service industry, including components such as banking, insurance and transportation, employs more people than any other sector in the Netherlands. The manufacturing industry ranks second. Unemployment rate According to the most recent figures released by Statistics Netherlands, unemployment in February 2015 stood at 699,000 (8.9 percent of the Dutch labor force). Labor Market Inventory Page 1 of 14

5 Population The Netherlands has 16.9 million inhabitants. Geographically, this population differs considerably in density. The western part of the country (comprising the provinces of North and South Holland and Utrecht) has traditionally been the most densely populated and is home to 45% of the country's population. Composition of the population The current composition of the population by age does not differ significantly between the countries in the European Union. Compared to the neighbouring countries, within the Netherlands a relatively high percentage of the population is in the economically "active" ages (15-64 years), which has a positive influence on the Dutch availability of labor. Country 0-14 years years 65 years or older Germany 13.1% 66.1% 20.8% The Netherlands 16.9% 65.7% 17.3% Belgium 17.0% 65.2% 17.8% France 18,6% 63.5% 18.0% United Kingdom 17,5% 64.8% 17.5% Source: Eurostat, figures relate to 2014 The composition of the Dutch population by province on 1 Januar 2014 is presented in the following table. The provinces of North Holland, South Holland and North Brabant make up for more than half of the Dutch population. Province Population (x 1,000) % of total population South Holland 3, % North Holland 2, % North Brabant 2, % Gelderland 2, % Utrecht 1, % Overijssel 1, % Limburg 1, % Friesland % Groningen % Drenthe % Flevoland % Zeeland % Source: Statistics Netherlands (CBS) March 2015, figures relate to 1 January Population Page 2 of 14

6 Total Labor Force The chapter below aims to provide foreign investors with up-to-date information on the size, participation rate, regional division, composition by gender, and nationality of the Dutch labor force. Size of the labor force During the period 2007 to 2014, the total Dutch labor force increased by 3.9% to 8.8 million people. The net participation rate, this is the employed labor force aged as a percentage of the total population aged 15-64, is 65%. Labor force by region The majority of Dutch employment is generated in the central and southwestern parts of the Netherlands, particularly the provinces of North Holland, South Holland, and North Brabant. Total Labor Force (x 1,000) Employed Netherlands 8,874 8,214 Province South Holland 1,872 1,1717 North Holland 1,476 1,369 North Brabant 1,328 1,234 Gelderland 1, Utrecht Overijssel Limburg Friesland Groningen Drenthe Flevoland Zeeland Source: Statistics Netherlands (CBS), figures relate to Composition of the labor force by age and gender The Dutch labor force as a percentage of the population in the ages of 25 until 49 years does not differ much in comparison with other European countries. However, a relatively high proportion of the younger population already participates in the labor force in the Netherlands. The net participation rate of women increased rapidly the last ten years. In the age group 15-64, 58.1% of the women has a paid job of twelve hours per week or more. Participation of women in the age group is the highest. In this group, 74.8% of the women had a paid job of twelve hours or more in Employment rate Belgium - Men - Women France - Men - Women Country years 72.3% 62.1% 73.7% 65.6% Total Labor Force Page 3 of 14

7 Germany - Men - Women Ireland - Men - Women United Kingdom - Men - Women The Netherlands - Men - Women 82.1% 72.5% 70.9% 60.3% 80.4% 69.3% 81.3% 71.6% Source: Eurostat December 2014, figures relate to the year 2013 Composition of the labor f orce by nationality The number of foreign workers in the Netherlands amounts to approximately 1.2 million persons. A large share of the foreign workers is from the EU-27, US and Japan. Source: Statistics Netherlands (CBS) Total Labor Force Page 4 of 14

8 Education and Labor Force Full-time education is compulsory in the Netherlands for all children aged five to sixteen. Education at an integrated primary school usually takes eight years. Depending on the choice of school (general or vocational), secondary education normally takes three to six years. A wide variety of intermediate and higher professional education provides ample opportunity to develop individual talent. The Dutch education system consists of: Primary schools Special schools Secondary schools Institutes for higher professional education Universities International schools School attendance (full-time education) per type 2012/2013 Type of school Number of schools Number of students Primary education 6,743 1,498,000 General secondary education ,000 Secondary vocational education (mbo) ,000 Higher professional education ,000 Universities ,000 Source: Statistical Yearbook 2014 (CBS) Primary schools Primary schools are for children aged Parents are free to choose which type of school they wish for their children. In the final year of primary school, all children take a state examination called a "CITO-toets". This is not a school leaving certificate but a method of establishing the average standard of knowledge throughout the Netherlands. Secondary schools There are four types of secondary schools: practical training schools (Pro) pre-vocational secondary schools (Vmbo) senior general secondary schools (Havo) pre-university schools (Vwo) Pre-vocational secondary education (Vmbo) lasts for 4 years. This is the basic level of secondary education offering a school-leaving certificate. Pupils who are unable to receive a Vmbo qualification can receive practical training, which prepares them for entering the labor market. Senior general secondary education (Havo) involves a 5-year course, preparing students for higher professional education. Pre-university secondary schools (Vwo) referred to as "atheneum" and "gymnasium" offer six-year courses to prepare students for higher professional or university education. Vocational education Upper secondary vocational schools (Mbo) provide education to pupils from the age of 16 in the following sectors: engineering and technology, economics and health & social care, agriculture, natural environment and food technology. Higher education Education and Labor Force Page 5 of 14

9 Higher education includes higher professional education (Hbo) and university education. The Netherlands has 37 Universities of Professional Education (UPEs) and 14 universities, one of which is an Open University offering distance education. The differences between the UPEs and the universities have become less marked in the course of time owing to collaboration between the two types of institution, general trends in higher education and new legislation. Nevertheless, a number of differences remain. UPEs, which offer four-year bachelor's degree programs and an increasing number of masters degree programs, are more geared towards practical training. The programs focus on specific occupations and include traineeships or work placements that provide students with practical work experience. Universities, on the other hand, traditionally offer four to six-year masters, postgraduate and PhD programs. In 2013/ ,203 students were enrolled in one of the universities of higher professional education in the following fields of study: Higher professional education enrollment 2013/2014 Study field % of total total Agriculture and veterinary sciences 1% 4,160 Science, mathematics and IT studies 6% 28,349 Education 16% 71,329 Social sciences, business and law 33% 145,104 Humanities and arts 6% 25,106 Engineering, manufacturing and construction 8% 33,851 Health and welfare 20% 89,383 Services, transport, environment and security 10% 42,921 Total 100% 440,203 The number of graduates of the institutes of higher professional education in 2012/2013 was approximately 60,000 (bachelor degrees) and 4,700 (associate degrees and continuation courses). Source: Statistics Netherlands (CBS), 2015 University enrollment 2013/ ,000 students were enrolled in university in 2013/2014 in the following fields of study: Study field % of total total Agriculture and veterinary sciences 1% 3,300 Science, mathematics and IT studies 7% 22,100 Education 4% 9,700 Social sciences, business and law 49% 118,000 Humanities and arts 14% 31,800 Engineering, manufacturing and construction 9% 24,400 Health and welfare 15% 37,300 Services, transport, environment and security 1% 3,100 Total 100% 250,100 In 2012/2013 the number of university graduates was approximately 33,000 (bachelor degrees) and 32,500 (master degrees). Source: Statistics Netherlands (CBS), 2015 International education Throughout the Netherlands there are international schools, following the American, British, French, German, as well as International and European systems of education. There are also a number of Dutch schools with special departments, "English Streams". These Streams provide two possibilities: a gradual integration into the Dutch education system or, after passing through the English stream, non-dutch children can take the international Education and Labor Force Page 6 of 14

10 Baccalaureate. All international schools are specialized in accepting children in the middle of terms and are used to providing additional English language tuition, if necessary. Most schools teach Dutch as part of the curriculum. Entry to all schools is based on previous school records and/or entry examinations. Most schools provide a wide range of extracurricular activities including sports, scouting, guiding, drama, etc. Education and labor f orce Young people may enter the work force directly after completion of twelve years of full-time school attendance, or at the end of the school year in which they become 16 years old. They are required to follow "part-time" courses for one or two days a week at educational institutes or at apprenticeship training schools for another two years. Educational attainment labor force (persons of 15 to 65 years old) 2010 Type of school % total Primary education 5% 382,000 Pre-vocational education (vmbo) 18% 1,379,000 Secondary and senior sec.voc. education (havo, vwo, mbo) 43% 3,345,000 Higher professional education (hbo) and university bachelor 23% 1,740,000 University master 12% 965,000 Source: Statistics Netherlands (CBS), 2015 Further online inf ormation The following websites offer up-to-date online information about education: Statistics Netherlands: Ministry of Education, Culture and Science: Netherlands Organization for International Cooperation in Higher Education (Nuffic): Board of Higher Vocational Training: Education and Labor Force Page 7 of 14

11 Multilingualism The multilingualism of the Dutch labor force is an important reason why many European head offices, distribution centers, shared services centers and callcenters are located in the Netherlands. The Netherlands is one of the most multilingual countries in comparison with other European countries. Most of the Dutch speak English and many have knowledge of the German and French language. Ability to speak another language well enough for conversation (% by country) NL B G F UK IRL Source: European Commission, Eurobarometer: Europeans and their languages, 2012 Just over half of Europeans (54%) able to hold a conversation in at least one additional language, a quarter (25%) are able to speak at least two additional languages and one in ten (10%) are conversant in at least three. Three most widely spoken languages apart from the mother tongue (% by country) NL B G F UK IRL English German French Spanish 13 Other* 22 *Other= not one of the languages of the European Union nor Russian or Arabic. Source: European Commission, Eurobarometer: Europeans and their languages, 2012 What EU citizens consider as their mother tongue does not necessarily have to be the official language of the country in which they live. Obviously, there are several EU Member States with more than one official language. There are also several countries where people consider a regional language to be their mother tongue. The freedom to work and study in another Member State means that, in each country, we find some foreign EU nationals whose mother tongue is another EU language. Finally, for some EU citizens, their mother tongue is a non-eu language spoken in their country of origin. The multilingualism of the Dutch can easily be explained. The Netherlands is a small country and known for centuries as a trading nation. The Dutch are therefore obviously internationally oriented. This international orientation requires good language skills. This is why Dutch students study English for six years in high school. Multilingualism Page 8 of 14

12 Labor Productivity Labor productivity provides a powerful indicator of economic efficiency. As indicated by below table, the Netherlands shows an higher GDP per hour worked than most other European countries in Country US$ Luxembourg 69.0 Norway 62.6 Belgium 52.5 Netherlands 52.3 Germany 50.9 France 50.9 Ireland 50.6 Denmark 46.9 Sweden 46.3 Austria 45.7 United Kingdom 44.5 Switzerland 44.5 Finland 42.6 Spain 40.4 Italy 38.4 Slovenia 35.2 Slovak Republic 30.4 Czech Republic 28.8 Greece 28.3 Portugal 26.7 Poland 22.9 Hungary 22.8 Source: OECD, Level of GDP per capita and productivity The high productivity in the Netherlands can be explained by the high overall standard of education and training in the Netherlands, an efficient work organization, a relatively high level of automation, the good working attitude of the Dutch employees and their flexibility, the relatively high efficiency in production processes, and a relatively small number of working days that are lost to industrial disputes per year. The following table presents an international comparison of days not worked due to industrial action, Country Days Cyprus 514 France (1) 171 Denmark 82 Norway 76 Belgium 66 Spain (2) 65 Finland 55 Ireland 46 United Kingdom 24 Portugal (4) 23 Malta 14 Labor Productivity Page 9 of 14

13 Germany 12 Estonia 11 Netherlands 9 Sweden 4 Austria 3 Hungary (3) 3 Poland 1 Swizerland 1 Notes: insufficient or no data for Bulgaria, Croatia, the Czech Republic, Greece, Italy, Luxembourg, Romania and Slovenia. (1) , (2) excluding (general) strikes in 2012 and 2013, (3) and 2012 (4) excluding strikes in public administration. Data source: ETUI 2015, own calculation Although the Dutch labor productivity is on par with that of the US, labor productivity growth rates have decelerated recently, partly due to the already high level. The medium-term outlook for Dutch productivity growth looks promising. Labor productivity growth for the market sector is expected to accelerate. Besides a positive cyclical effect, one of the other drivers of the acceleration is IT. More investments in and better use of IT in industries such as the services industries is speeding up productivity. Labor Productivity Page 10 of 14

14 Temporary Labor Within the European Union, approximately two million people are employed by temporary work agencies every day on average, representing slightly more than 1% of total employment. Agency work is particularly developed in France, the UK, and the Netherlands, as well as Belgium and Luxembourg. It has been the most rapidly growing form of employment in the EU15 during the last decade. Temporary agency work can be an effective stepping stone for new entrants into the labour market and hence contribute to increased job creation, for example by facilitating recruitment instead of overtime. Acting as human capital managers - rather than mere manpower suppliers - these agencies can also play the role of new intermediaries in the recruitment and management of both qualified and unqualified staff, offering employers an attractive alternative to traditional recruitment channels. T WAs play an important role in the Netherlands In the Netherlands, temporary employment agencies play an important role. The average number of temp workers over 2014 was 198 thousand, 2.5% of the total employed labor force. Most of the time, this involves short-term assignments: the average hours of work is 28 weeks. It is interesting to note that about a quarter of the job seekers who are successfully placed by temporary employment agencies belong in the "hard-to-place" category. As such, these agencies increasingly fulfill roles traditionally carried out by public employment offices. Europe: total number of individuals employed through agency work on a yearly basis, 2014 France 2,000,000 United Kingdom 1,555,900 Germany 838,800 Netherlands 700,700 Poland 559,500 Italy 482,100 Spain 422,600 Portugal 352,200 Belgium 343,400 Switzerland 303,000 Sweden 134,600 Norway 126,900 Ireland 75,700 Denmark 30,000 Source: CIETT Economic Report, 2015 Edition Number of agency workers in dayly FTE's Country Change in % United Kingdom 696,000 1,156, Germany 246, , France 458, , Netherlands 180, , Belgium 60,000 83, Spain 110,000 81, Source: CIETT Economic Report, 2015 Edition Legislation supports T WAs as a serious alternative The relationship between a TWA and a temporary agency worker is to be treated like a normal employment Temporary Labor Page 11 of 14

15 contract, with normal entitlements for the workers to social security, although the first 78 weeks allow for more freedom in hiring and firing. Once the temporary agency worker has worked for 78 weeks at the same TWA, he or she gets an employment contract for a definite period of time with the agency, including dismissal protection that goes with these contracts. The law stipulates that TWAs don't need a permit to operate in the Dutch labor market.. Temporary Labor Page 12 of 14

16 Unemployment Rate The unemployment rate for the EU-28 area was 10.2% in It was 0.7 percentage points lower than in In the Euro area, the unemployment rate was 11.6% in For the United States, the unemployment rate was 6.2%, and for Japan 3.4% According to Eurostat statistics, the Dutch unemployment rate compares favorably with that of surrounding European countries such as Belgium,France and Ireland. Unemployment rate in percent of labor force in EU Countries OECD country 2012 Unemployment in % 2013 Unemployment in % 2014 Unemployment in % Ireland France Belgium Germany Netherlands UK Source: Eurostat, March 2015 Unemployment Rate Page 13 of 14

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