Fewer social security claimants find work

Today Statistics Netherlands announced that the proportion of social security claimants who found a new job declined further last year. Since the start of the survey in 2007, the proportion has never been so low.  Male and under-35 social security claimants were most successful on the labour market.  Zoetermeer is the municipality with the highest share of people bridging the gap from social security to employment.

Proportion of people who find work at lowest level since the start of the survey 

On average, 7.3 percent of people receiving social security benefits by the end of 2012 found a job in 2013, versus 7.9 percent one year previously.  The pre-crisis figure was approximately twice as high.  In 2007 and 2008, for example, nearly 15 and nearly 12 percent respectively of people living on social security found work. 

Today, Statistics Netherlands also announced that in September 2014 unemployment was falling for the fifth month in a row and that the number of unemployment benefits is declining.  As yet, these signs of a recovering labour market are not reflected in the number of social security benefits.  In August, Statistics Netherlands revealed that the number of people on social security was still growing in the second quarter of 2014.

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Men and young people more successful on the labour market

Young people living on social security were fairly often able to find a new job, i.e. nearly 17 percent of 15 to 24-year-olds and nearly 14 percent of 25 to 34-year-olds. Across all age categories, men were more successful than women. On average, one in every ten men who claimed social security by the end of 2012 had found a new job in 2013, versus just over one in twenty women.

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Zoetermeer on top, Rotterdam at the bottom of the list

In the municipality of Zoetermeer, nearly 11 percent of social security claimants found work in 2013. For the third consecutive year, Zoetermeer tops the list of municipalities with a population of 100 thousand or more.  With 4.8 percent, Rotterdam is at the bottom of the list in 2014. Two years ago, 8.6 percent of Rotterdam residents bridged the gap from social security to employment.

Municipalities (more than 100 thousand residents) with the lowest and highest share of social security recipients at the end of 2012 who found employment in 2013

Number of people on social security distinctly higher than in the pre-recession era

In July this year, 436 thousand people were living on social security, i.e. an increase by 126 thousand relative to six years ago.  An estimated half of recipients aged 27 years or older had been living on social security benefits for three years or longer, versus two-thirds of over-45s.  For people who have lived on social security for a long period of time, the distance to the labour market is considerable.

Number of people (not entitled to old age pension) receiving social security benefits