More and more people are not working, while the group of workers is not growing

The Netherlands is currently facing a demographic shift where the number of non-working individuals has reached 8.5 million and continues to grow. While the population is increasing, the workforce of 9.6 million people has remained stagnant since 2023. Factors contributing to this trend include an aging population, which places a higher burden on the welfare state, and the arrival of migrants who are not participating in the labor market. Chief economist Peter Hein van Mulligen of the CBS has noted that the costs of the social security system now rely on a smaller group of contributors, with a significant portion of state benefits funded directly from the national treasury.

Economic pressures are further intensified by rising healthcare costs, which consume approximately 10 percent of the gross domestic product. Although the labor market remains tight with 95 vacancies per 100 unemployed people, the number of available workers is not growing. Recent data also highlights a slight decrease in the average working hours for men, while women have shown a marginal increase in their working time over the past four years.