netherlands workforce workforce profile no.24 profile no.24 november 2010 november 2010 netherlands

Workforce Profile

Josje Dikkers and Esha Zaveri

introduction to the netherlands

The Netherlands is a country on Western Europe’s mainland bordered by the North Sea (Noordzee) in the west and north, by Germany at the east and by in the south. Its capital city is Amsterdam, and its government is seated in The Hague.

The population of the Netherlands in 2009 was 16,515,057.1 Over 18% of its surface consists of water, and large parts of the country are located below sea level. The land is protected Netherlands from the water through an extensive system of dikes, and has been reclaimed by creating polders. The Netherlands is divided into twelve provinces: Noord and Zuid-Holland, Germany , , , , , , Noord-Brabant, , Belgium Limburg, and Flevoland.

France Until the , the (currently the Netherlands, Belgium and About this Statistical Profile Luxembourg) consisted of a number of duchies, counties, and bishoprics mostly under the supremacy of the Holy Roman Empire.2 In 1549, Charles V brought the Netherlands under Organizations striving to be his rule and that of his son, King Philip II of Spain. In 1568 the Netherlands, led by William I employers-of-choice in different of Orange, rebelled against Philip II during ‘the Revolt’, which formed the start of the Eighty countries around the world need Year’s War.3 The ‘Union of Utrecht’ declared the independence of the Republic of the Seven access to current information about United Netherlands in 1581, and since 1830, the country has been known as the Kingdom of the economic, social, political, and the Netherlands. Since 1848 the Netherlands has maintained a parliamentary democracy, demographic characteristics of the under a constitutional monarchy made up of three political entities: the monarch, countries where their employees live 3 and work. government, and parliament.

The Country Profile Series focuses Today, the Netherlands is one of the most developed countries in the world with the 16th on statistics that can guide decision- largest economy.4 The International Court of Justice and Interpol are seated in The Hague. making in the workplace: workforce The Dutch population is growing at a modest rate, 0.5% per annum.2 The proportion of highlights, economic highlights, and ethnic minorities in the population increased from just over 16% in 1997 to 20% in 2009.4 population highlights. This Country Dutch national income rose by an average of 2.5% per annum in the period 1997-2008.4 In Profile is part of a set of resources 2008, the Netherlands received the lowest score on the ‘misery index’ because of its low about the Netherlands available unemployment and inflation rates.4 on the website of the Global Perspectives Institute: www.bc.edu/ agingandwork.

Sponsored by:

[email protected] 1 labor force highlights

àà In 2009, 80% of the total Dutch population was in the labor force, which includes persons age 15 years and above.5

àà The labor force participation rate in the Netherlands has grown in the past decade, especially among women, older people and members of non-Western ethnic minorities. The government’s target of increasing the number of people in work or seeking employment by a further six percentage points over the coming seven years is ambitious; the target is twice as high as the increase since 2000.4

àà The economically active population in the Netherlands is projected to increase from 9 million in 2009 to 9.3 million in 2020. The “economically active population” comprises all persons of either sex who furnish the supply of labor for the production of goods and services during a specified time reference period.6

àà The ratio of people in work to the number of economically “inactive” people (excluding old age pensioners) has improved; in 1998 there were 32 economically inactive people for every 100 workers, while in 2008 this number had fallen to 25.4

àà The unemployment rate in 2008 was 3.0%.6

àà The unemployment rate among older people (55-64 years) has always been low in the Netherlands, but has increased over the last four years. Because the majority of older unemployed people have little chance of finding work again, the consequences of the present recession are likely to be prolonged for them.4

àà In 2009, the average hours worked by employees in their primary job (either full or part-time) was 30.6 hours compared to 33.7 hours in Denmark and 36.3 hours in Sweden.5

àà In 2008, 36.1% of the employed labor force worked part time.5

àà In 2005, 13.1% of the total employed civilian labor force reported being self- employed.5

Figure 1a. Employment as Percent of Total Population - Selected Regional Countries, Age 15+, (2009)

Netherlands 80.0

Belgium 67.4 A majority of the Dutch population (80%) is employed, compared to 82.2 Denmark 77.6% in Germany and 82.2% in Denmark. France 71.0

Germany 77.6

Switzerland 85.1

0% 20% 40% 60% 80% 100%

Source: OECD, (2010)5

2 http://www.bc.edu/agingandwork netherlands Figure 1b. Employment as Percent of Total Population - Selected GNI Countries, workforce Age 15+, (2009) profile no.24 november 2010 Netherlands 80.0

Sweden 80.7

A larger portion of the Dutch United States 77.9 population is employed (80%) compared to 77.9% in the United United Kingdom 78.5 States and 78.5% in the United 76.6 Kingdom. Austria

Denmark 82.2

Australia 78.3

0% 20% 40% 60% 80% 100% Source: OECD, (2010)5

Figure 2. Employment Rate, Ages 15-64, by Gender, the Netherlands and Comparable Nations, 2008 100% Male

85.4 81.8 82.3 Female 78.5 78.4 79.6 75.9 78.1 76.4 In the Netherlands, 81.8% of the 80% 74.4 73.5 73.1 70.2 69.1 68.2 66.8 66.7 male population and 70.2% of the 64.3 65.4 65.7 female population is employed. 60.0 60% 55.7 Across all comparable countries more men than women are employed, with the smallest gender- 40% employment gap in Sweden. 20%

0% Netherlands Belgium Denmark France Germany Switzerland Sweden United United Austria Australia States Kingdom

Source: OECD, (2010)5

Figure 3. Employment Rates in the Netherlands, within Age Groups, 2009

100% 87.1 86.4 82.4 80% 77.3 In the Netherlands, employment 58.5 rates remain high for ages 25-54. 60% 52.6 Employment rates are higher for younger people (15-24) than older 40% persons (54-64). 20%

0% 15-19 20-24 25-34 35-44 45-54 55-64

Source: OECD, (2010)5

[email protected] 3 Figure 4. Employment Rates in the Netherlands Compared to Selected Regional Countries, within Age Groups, 2009

100% Netherlands In 2009, the Dutch employment Denmark rates across age groups were fairly 80% similar to its neighbors with a Germany notable difference in the youngest 60% Belgium age groups (age15-29), where France the Netherlands has the highest 40% employment rate followed closely by Denmark. 20%

0% 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69

Source: OECD, (2010)5

Figure 5a. Current and Projected Economically Active Population Rates in the Netherlands, within Age Groups, 2009 and 2020

100% 94.0 93.9 91.8 91.7 2009 90.3 90.9 90.0 89.5 89.5 87.8 86.6 83.1 83.8 83.9 2020 80% 78.1 Current projections do not indicate 72.8 68.1 much variation in the economically 64.5 active population between now and 60% 2020. However, the most notable increases are seen in the 55-64 age 42.1 group. 40% 35.7

20% 8.4 6.4

0% 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

Source: International Labor Organization, (2010)6

Figure 5b. Current and Projected Economically Active Population as % of Total Population in the Netherlands by Gender, 2009 and 2020

15-19 2009 Male 4.0 31.5 23.8 20-44 45+ 2009 Female 3.8 27.5 17.8

2020 Male 4.2 28.5 25.1

2020 Female 3.9 25.9 20.1

0% 10% 20% 30% 40%50% 60%

Source: International Labor Organization, (2010)6

4 http://www.bc.edu/agingandwork netherlands economic highlights workforce profile no.24 àà Gross Domestic Product per capita in the Netherlands was estimated at $39,500 november 2010 in 2009, compared to $36,800 for Belgium and $34,100 for Germany. The GDP per capita is somewhat less than that of the US which is $46,400.7

àà In 2007 the Dutch GDP grew by 3.9%.8 Since 2008 the global financial crisis has hit the Netherlands hard. GDP grew by 1.9% in 2008 but declined by 4% in 2009. The economy is making a slow recovery in 2010, however with an estimated growth rate of 1.25%.9

Figure 6. GDP Growth, Regional Comparisons, 1990-2008

6 Netherlands 5 Germany 4 Belgium During the late 90’s the Netherlands 3 France surpassed its neighbors in GDP growth. There was a slump from 2 2000-2003, but the GDP grew 1 considerably thereafter till 2007. 0 -1 1991 1995 1993 1997 1992 1998 2005 1994 1996 1999 2001 2007 1990 2003 2008 2006 2002 2004 2000

*GDP growth figure for Germany in 2002 from OECD is missing. Source: OECD, (2010)5

Figure 7. Total External Debt as Percentage of GDP, Selected Regional Countries, 1992-2008

150% Netherlands Germany 120% Belgium France Dutch debt has seen a gradual 90% decline since 1993, but has begun to rise since 2007. 60%

30% 1995 1993 1997 1992 1998 2005 1994 1996 1999 2001 2007 2003 2008 2006 2002 2004 2000

Source: OECD, (2010)5

[email protected] 5 Income Facts about the Netherlands

• The average household income in the Netherlands increased between 1997 and 2007. Couples with children and single-parent families have seen a proportionally strong rise in their incomes since the beginning of the present decade.4

• Income inequality has remained fairly stable since 1997. The poverty rate has declined slightly.4

• The total number of benefit recipients remained fairly constant between 1998 and 2008, at between 3.9 and 4.1 million. The rise in the number of people in receipt of old-age pension is offset by a fall in those claiming disability benefits, social assistance benefits, and surviving dependants’ benefits.4

• In late 2008/early 2009, 59 % of Dutch citizens were “satisfied” with their incomes. The satisfaction rate was higher among pensioners (71%), and substantially lower among benefit recipients younger than 65 years (28%).4

• In 2008-2009, 72% of the Dutch population held the view that income differentials should be reduced.4

6 http://www.bc.edu/agingandwork netherlands demographic highlights workforce profile no.24 àà In 2009, the Dutch population was 16,418,000, compared to 10,542,000 for Belgium november 2010 and 5,473,000 for Denmark.5

àà In 2007, 4.2% of the population was of non–Dutch descent.5

àà The fertility rate in the Netherlands in 2010 is estimated at 1.66 children born/woman (compared to the US and German rates at 2.06 and 1.42, respectively).7

àà In 2008, 14.8% of the population in the Netherlands was over the age of 65 compared to 17.2% in Belgium and 13.7% in Australia.7

Figure 8. Median Age, by Gender (Country Comparisons, 2010)

40.0 Netherlands 36.8 40.7 Australia Male 43.0 39.8 Belgium 38.2 Germany

41.6 Denmark 38.3 43.3 France Female 45.6 41.6 41.2

0 10 20 30 40 50

Source: CIA, (2010)7

Figure 9. Life Expectancy at Birth (Country Comparisons, 2010)

76.9 Netherlands 79.3 76.2 Australia Male 76.4 Belgium The life expectancy at birth in the 76.1 77.9 Netherlands is 76.9 for men and 82.3 Germany for women. (See Figure 9) 82.3 Denmark 84.3 82.7 France Female 82.6 81.0 84.4 0 20 40 60 80 100 Source: CIA, (2010)7

[email protected] 7 àà In the Netherlands, 19.8% of the male population and 23.5% of the female population is 60+ years.10 In comparison: • In Belgium, 21.3% of the male population and 26.5% of the female population is 60+. • In Australia, 18.1% of the male population and 20.6% of the female population is 60+.

àà In the Netherlands the highest percentage of people, both male and female, are in their 40’s. Also, the percentage of women in each age group 65+ is higher than men. Belgium and Australia show a similar trend.10 (See Figures 10a-10c)

Figure 10a. Population Distribution of Netherlands, 2010

Male Female

80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 10% 8% 6% 4% 2% 0% 0% 2% 4% 6% 8% 10% % of Population Source: US Census Bureau, (2010)10

8 http://www.bc.edu/agingandwork netherlands Figure 10b. Population Distribution of Belgium, 2010 workforce profile no.24 Male Female november 2010 80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 10% 8% 6% 4% 2% 0% 0% 2% 4% 6% 8% 10% % of Population Source: US Census Bureau, (2010)10

Figure 10c. Population Distribution of Australia, 2010

Male Female

80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 10% 8% 6% 4% 2% 0% 0% 2% 4% 6% 8% 10% % of Population Source: US Census Bureau, (2010)10

[email protected] 9 Work and Family in the Netherlands

• A growing proportion of the Dutch population, 20-65 years, balanced paid work with care tasks at home (38%) in 2005. Women most often combined work-home tasks.4

• Among working women, 56% regularly feel rushed, and many, (31%) think they fall short on the “home front.” These feelings are slightly less common among working men (45% and 21%, respectively).4

• The time that parents devote to their children (aged up to five years) is almost 21 hours per week for women and 10 hours per week for men, but is increasing. Internationally, the Dutch take the lead in the amount of time they spend with their children.4

10 http://www.bc.edu/agingandwork netherlands references workforce profile no.24 1 Central Bureau of Statistics (CBS). (2010). Population. Retrieved September 29, 2010 from: http://www.cbs. november 2010 nl/nl-NL/menu/themas/bevolking/cijfers/extra/bevolkingsteller.htm

2 Arblaster, P. (2006). A history of the low countries. New York: Palgrave Macmillan.

3 Blok, P. J. (1898-1912). History of the people of the Netherlands (5 vols). Retrieved August 10, 2010 from http:// www.archive.org/stream/historyofpeopleo05blokuoft#page/n9/mode/2up

4 The Netherlands Institute for Social Research (SCP). (2010). Social state of the Netherlands 2009 (scp-publica- tion 2010/6). The Hague: SCP.

5 Organization for Economic Co-Operation and Development. (2010). StatExtracts. Country statistical profiles. Retrieved July 19, 2010 from: http://stats.oecd.org/Index.aspx

6 International Labor Organization. (2010). LABORSTA internet. Retrieved July 19, 2010 from: http://laborsta. ilo.org/

7 The Central Intelligence Agency. (2010).The world factbook 2010. Retrieved August 9, 2010 from: https://www. cia.gov/library/publications/the-world-factbook/geos/nl.html

8 Eurostat. (2010). Statistics database. Retrieved August 9, 2010 from: http://epp.eurostat.ec.europa.eu/portal/ page/portal/product_details/dataset?p_product_code=TSIEB020

9 U.S. Department of State. (2010). Background note: Netherlands. Retrieved August 9, 2010 from: http://www. state.gov/r/pa/ei/bgn/3204.htm

10 US Census Bureau. (2010). International database. Retrieved August 9, 2010 from: http://www.census.gov/ ipc/www/idb/

[email protected] 11 about the institute

Established in 2007 by the Sloan Center on Aging & Work at Boston College, the Global Perspectives Institute is an international collaboration of scholars and employers committed to the expansion of the quality of employment available to the 21st century multi-generational workforce in countries around the world.

The Global Perspectives Institute focuses on innovative and promising practices that might Country Context Team Leaders be adopted by employers and policy-makers. Marcie Pitt-Catsouphes, Director, Sloan The Institute’s research, publications, and international forums contribute to: Center on Aging and Work Tay K. McNamara, Director of Research, àà a deeper understanding of the employment experiences and career aspirations of Sloan Center on Aging and Work employees of different ages who work in countries around the world; Jungui Lee, Postdoctoral researcher, Sloan Center on Aging and Work àà informed decision making by employers who want to be employers-of-choice in different countries; and

àà innovative thinking about private-public partnerships that promote sustainable, high-quality employment.

The Sloan Center on Aging & Work at Boston College promotes quality of employment as an imperative for the 21st century multi-generational workforce. We integrate evidence from research with insights from workplace experiences to inform innovative organizational decision making. Collaborating with business leaders and scholars in a multi-disciplinary dialogue, the Center develops the next generation of knowledge and talent management.

The Sloan Center on Aging & Work is grateful for the continued support of the Alfred P. Sloan Foundation.

Josje Dikkers is assistant professor at the Department of Organizational Behavior and Development of the VU University Amsterdam. Josje Dikkers graduated, cum laude, in 2001 with a specialization in Work & Organizational Psychology at Tilburg University. Subsequently, she worked at the Department of Work & Organizational Psychology of the Radboud University Nijmegen on her PhD project which focused on the interaction between people’s work and private life in relation to organizational, work and home characteristics, which she successfully defended in 2008. Her research interests focus on the interaction between work and wellbeing, and more specifically on HRM-policies facilitating work-home balance. Luísa de Azevedo has a bachelor’s degree in Economics from the Federal University of Rio de Janeiro. She first started working with research in 2005, participating as an assistant in projects mainly with regards to the Brazilian labor market. She was part of the research team of Ricardo Paes de Barros at IPEA and is currently a junior researcher at IETS. Her latest work in the field of labor markets was a monthly bulletin on entrepreneurship in Rio de Janeiro, developed with other senior researchers from IETS.

Esha Zaveri is a graduate student in the Department of Economics at Boston College. Her research interests lie in applied microeconomics with a focus on developing countries.

12 http://www.bc.edu/agingandwork netherlands For additional Sloan Center publications, visit our website at www.bc.edu/agingandwork workforce Country Workforce Profile 01 - Japan Country Workforce Profile 13 - Kenya profile no.24 Country Workforce Profile 02 - United States Country Workforce Profile 14 - Australia november 2010 Country Workforce Profile 03 - Pakistan Country Workforce Profile 15 - Germany Country Workforce Profile 04 - South Korea Country Workforce Profile 16 - France Country Workforce Profile 05 - China Country Workforce Profile 17 - Sweden Country Workforce Profile 06 - Greece Country Workforce Profile 18 - United Kingdom Country Workforce Profile 07 - Armenia Country Workforce Profile 19 - Spain Country Workforce Profile 08 - Italy Country Workforce Profile 20- Ireland Country Workforce Profile 09 - Singapore Country Workforce Profile 21 - Mexico Country Workforce Profile 10 - Denmark Country Workforce Profile 22 - NIgeria Country Workforce Profile 11 - South Africa Country Workforce Profile 23 - Brazil Country Workforce Profile 12 - India

[email protected] 13