Groningen Explores Innovative Solutions for Youth Employment and Financial Relief
Addressing youth unemployment and student debt - Groningen’s steps to support young professionals and build a resilient workforce
The municipality of Groningen is addressing two critical challenges facing its youth: rising unemployment and the financial strain of student debt. In a bold proposal, the local student party Student&Stad, backed by GroenLinks and SP, is advocating for municipal civil servants to be allowed to use their individual choice budgets to pay off DUO student loans. This initiative, inspired by similar schemes implemented by employers like ProRail, Schiphol, and ING, would enable employees to make repayments tax-free, saving thousands of euros over time. The move aims to alleviate financial and mental burdens tied to student debt while positioning Groningen as an attractive employer for young talent, especially as nearly one-third of its civil servants are expected to retire within the next decade.
“We must focus on recruiting and retaining young professionals,” said Olivier van Schagen, party leader of Student&Stad. “Offering this benefit can provide employees with financial breathing room while addressing the growing interest rates on student loans, which have risen above 2.5%. This initiative could also help young professionals secure mortgages and reduce long-term debt stress.”
At the same time, the municipality is dealing with a worrying rise in youth unemployment. Alderman Carine Bloemhoff (PvdA) of Work & Participation notes that factors such as changes to the Participation Act, mental health challenges, and the growing number of permit holders entering welfare are driving this trend. “We are seeing a significant increase in the number of young people on welfare, including those with higher education degrees,” Bloemhoff said. “This is a concern, as Groningen is a vibrant city with a large youth population, and we must ensure that all young people have the opportunity to thrive in the labour market.”
To address the issue, the municipality plans to expand on existing initiatives such as StartFest, Kansrijk Talent, and Route Arbeid, which focus on skills development, job training, and creating pathways to employment. Bloemhoff is preparing an "attack plan" to combat youth unemployment, with an emphasis on quickly reintegrating young people into the workforce. The plan, expected to be presented in spring, will aim to reduce the inflow into welfare and provide tailored support for those facing barriers to employment.