Search Results

Long-term unemployment will decline as the economy recovers, but this will not solve the problem of older long-term unemployed. Institutional reforms are needed to solve this problem. In the aftermath of the Great Recession, the Netherlands is faced with 270,000 people who have been unemployed for more than one year, representing over 3 per cent of the labour force. In this respect, the Netherlands is doing worse than Germany, the United States and the Nordic countries. Long-term unemployment negatively affects people's happiness as well as their employability. Moreover, for the government it also means a decline in tax revenue and an increase in social security expenditure. As the economy recovers, long-term unemployment will go down, even without government intervention. Following earlier recessions, the decline has been around 1 per cent and this is currently also a realistic prospect. The current relatively high level of long-term unemployment in the Netherlands is the result of a slower economic recovery than in other countries. Wage developments and the alleged inflexibility of the Dutch labour market also play a role, but to a lesser degree.

Excerpt from publication. Show less