John,
Just got the latest survey of the unemployment rates for European countries. Your forebears' land, Holland, is not doing that badly in the economic crisis -- with unemployment increasing from 295,000 in early 2008 to 400,000 in 2009 or to 3.6%. This is thanks to a large developed service market, part-time work and especially acceptance of flexible work with interim job placement bureaus .... all creating a very flexible labor market. Thus, it is much easier to balance supply and demand. Unions agreed with the flexible time concept in the early 80s while most unions in other European countries have resisted this development as being mainly for lower educated, lower paid workers. But Holland has developed good parttime and flexible work markets for all levels of workers. Also, unemployment was very low in 2007-08 so firms have been somewhat hesitant in dismissing scarce laborers too quickly.
Another reason for Holland's low unemployment is fact that it is no longer a manufacturing land but a strongly diversified service economy with robust job growth in health care, education, government, and tecnical knowhow services. These job markets are less sensitive to economic cycles. Lastly, the strong but strict social-net system where the unemployed can receive unemployment benefits up to 38 months -- where payments are reasonable but are reduced if you do not quickly exert maximum efforts to find work and if you refuse work offered -- all contribute to lower unemployment.
Still, the Dutch are not cheering yet as the government expects the unemployment rate to increase to 8% in 2010. This is because the labor market reacts late here with the high social-net protection for dismissal of people by firms.
Here are the unemployment rates as of the 3rd quarter of 2009:
Belgium............................7.9%
Denmark..........................6.2%
Germany..........................7.6%
France.............................9.8%
Ireland............................12.6%
Japan...............................5.5%
Netherlands.....................3.6%
Poland.............................9.9%
Spain.............................18.7%
UK...................................9.6%
Sweden...........................8.6%
EU...................................7.9%
US.................................10.0% (November 2009)
Regards,
Frank
Just got the latest survey of the unemployment rates for European countries. Your forebears' land, Holland, is not doing that badly in the economic crisis -- with unemployment increasing from 295,000 in early 2008 to 400,000 in 2009 or to 3.6%. This is thanks to a large developed service market, part-time work and especially acceptance of flexible work with interim job placement bureaus .... all creating a very flexible labor market. Thus, it is much easier to balance supply and demand. Unions agreed with the flexible time concept in the early 80s while most unions in other European countries have resisted this development as being mainly for lower educated, lower paid workers. But Holland has developed good parttime and flexible work markets for all levels of workers. Also, unemployment was very low in 2007-08 so firms have been somewhat hesitant in dismissing scarce laborers too quickly.
Another reason for Holland's low unemployment is fact that it is no longer a manufacturing land but a strongly diversified service economy with robust job growth in health care, education, government, and tecnical knowhow services. These job markets are less sensitive to economic cycles. Lastly, the strong but strict social-net system where the unemployed can receive unemployment benefits up to 38 months -- where payments are reasonable but are reduced if you do not quickly exert maximum efforts to find work and if you refuse work offered -- all contribute to lower unemployment.
Still, the Dutch are not cheering yet as the government expects the unemployment rate to increase to 8% in 2010. This is because the labor market reacts late here with the high social-net protection for dismissal of people by firms.
Here are the unemployment rates as of the 3rd quarter of 2009:
Belgium............................7.9%
Denmark..........................6.2%
Germany..........................7.6%
France.............................9.8%
Ireland............................12.6%
Japan...............................5.5%
Netherlands.....................3.6%
Poland.............................9.9%
Spain.............................18.7%
UK...................................9.6%
Sweden...........................8.6%
EU...................................7.9%
US.................................10.0% (November 2009)
Regards,
Frank
John,
Thank you for your post of this information. Could you please discuss more what in your views are also other levels of success that are helping the Netherlands to sustain the unemployment siege at a better rate than other EU nations?
-Efrutik
Posted by: Efrutik | December 06, 2009 at 04:32 PM