Part-Timers and Migrant Workers Cannot Solve Our Staff Shortages
Part-Timers and Migrant Workers Cannot Solve Our Staff Shortages
The government has proposed a few solutions, some of which might include discouraging the employment of internationals.
Increasing the number of migrant workers or enabling part-timers to extend their working hours is unlikely to address the significant staff shortage in the Netherlands, as indicated by the Central Planning Bureau, the most important economic institute in the country.
For several years, the Netherlands has experienced a consistently competitive labor market, with more vacancies than job seekers. Nearly all sectors face challenges in securing suitable employees.
Various solutions have been proposed during this period, including retraining, deploying more migrant workers, motivating part-time employees to extend their working hours, and encouraging the unemployed to rejoin the workforce.
However, according to Pieter Hasekamp, the director of the Central Planning Bureau (CPB), none of these alternatives provides a resolution. For example, the language barrier limits migrants from working in all sectors. Moreover, the influx of additional migrants would result in increased spending within our country, leading to higher demand for goods and services, consequently requiring additional staff.
Many Dutch people already have a job
Another popular solution is to increase the number of unemployed rejoining the workforce. However, the CPB emphasizes that the Netherlands already boasts one of the highest employment rates globally, making this approach contribute little to a solution.
Similarly, encouraging part-time workers to increase their hours is unlikely to have a substantial impact. Pieter Hasekamp notes that for many part-timers, money plays a limited role and making it financially more appealing may not be enough.
Retraining is also deemed ineffective, given the intense demands of the tight labor market. Many companies face high workloads, leaving little time for training. Furthermore, there are scarcely any sectors with an excess of available workforce.
Government can make a difference
What proves effective? According to the CPB director, the government plays a crucial role and needs to make decisive choices. One approach is to raise wages for educators and healthcare professionals, making employment in these sectors more appealing.
Moreover, the government can curb spending to decrease the demand for goods and services. This would temper the economy, freeing up more individuals for employment in various sectors like construction, healthcare, and education.
Additionally, simplifying laws and regulations would be beneficial, reducing the need for personnel in government services such as the Tax Authorities, as suggested by the CPB.