Unemployment rate down to 3.6 percent in May

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© ANP / Patricia Rehe
Over the past three months, the number of unemployed persons has declined by an average of 4 thousand per month. In May 2024, there were 367 thousand unemployed people, equivalent to 3.6 percent of the labour force. This was 3.7 percent in April. The unemployment rate has been hovering around 3.6 since summer 2023. The number of employed people has increased. Statistics Netherlands (CBS) reports this based on newly released figures. At the end of May, the Employee Insurance Agency (UWV) recorded 171 thousand people receiving unemployment (WW) benefits, 500 more than at the end of April.

Unemployment and unemployment benefits
   Unemployment (15-74 yrs, seasonally adjusted) (x 1,000)Unemployment benefits (15 yrs up to state pension age) (x 1,000)
2017January588419
2017February582416
2017March571415
2017April563401
2017May564386
2017June555372
2017July544364
2017August534362
2017September529351
2017October511343
2017November504337
2017December503330
2018January487335
2018February474330
2018March465327
2018April463314
2018May460301
2018June463288
2018July458279
2018August463278
2018September451274
2018October444269
2018November433267
2018December437263
2019January437279
2019February419274
2019March416268
2019April409257
2019May411251
2019June423243
2019July424234
2019August432237
2019September432233
2019October432233
2019November434228
2019December409223
2020January390241
2020February383240
2020March388250
2020April427292
2020May439301
2020June513301
2020July532301
2020August533292
2020September519278
2020October509278
2020November485276
2020december476286
2021January448289
2021February450286
2021March439282
2021April427266
2021May419250
2021June405238
2021July393224
2021August406213
2021September399208
2021October382199
2021November359189
2021December369192
2022January354193
2022February336188
2022March327184
2022April316175
2022May323165
2022June339161
2022July353157
2022August378152
2022September382152
2022October365150
2022November364145
2022December352149
2023January360154
2023February356154
2023March357158
2023April343156
2023May353151
2023June353153
2023July362152
2023August364156
2023September371155
2023October361156
2023November357160
2023December361161
2024January368167
2024February379174
2024March371175
2024April375170
2024May367171

As a result, there were 9.8 million people in paid employment in May. The number of employed people grew again by 10 thousand a month, on average, over the past three months, after stagnating in the first months of this year.

A total of nearly 3.6 million people aged 15 to 74 were not in paid employment for various reasons. In addition to the 367 people who were unemployed, nearly 3.2 million people were not seeking and/or immediately available for work recently. These people are not counted as part of the labour force. Many of them are retirees and people who are unable to work due to sickness or work incapacity. Averaged over the past three months, the number of people outside the labour force fell by 5 thousand.

UWV: Number of unemployment (WW) benefits increased slightly in May

At the end of May 2024, UWV recorded 170.8 thousand recipients of unemployment (WW) benefits. That was nearly 500 more than at the end of April (+0.3 percent). In May, 23.9 thousand new unemployment benefits were granted and 23.4 thousand benefits were terminated. Since October 2023, the number of unemployment benefits has increased slightly almost every month.

UWV: Differences between sectors

In May, the number of unemployment (WW) benefits rose the most in the government sector (+4.1 percent), the food, beverages and tobacco industry (+3.8 percent) and the cleaning sector. There were also sectors in which the number of unemployment (WW) benefits decreased, such as agriculture (-6.9 percent), construction (-6.9 percent) and temporary employment (-4.4 percent). These sectors usually offer more work in spring.

Youth unemployment declined

In May, unemployment fell the most among young people, from 8.7 to 8.4 percent of the labour force aged 15 to 24. The unemployment rate is significatnly higher in this age group than among people aged 25 and over. There were also larger fluctuations in the unemployment rate among young people in the previously 12 months. Youth unemployment is mostly about young people in education who are seeking part-time jobs.
Among 25 to 44-year-olds in the labour force, the rate decreased from 3.1 to 3.0 percent. It remained stable among people aged 45 and over, at 2.1 percent.

Unemployment rate
   15-24 yrs (%)25-44 yrs (%)45-74 yrs (%)
2023Jan7.83.02.4
2023Feb7.83.02.2
2023Mar8.02.92.2
2023Apr7.92.82.1
2023May8.22.92.1
2023Jun8.32.82.1
2023Jul8.62.92.1
2023Aug8.72.92.1
2023Sep8.82.92.2
2023Oct8.42.92.2
2023Nov8.22.92.2
2023Dec8.13.02.1
2024Jan8.23.12.2
2024Feb8.73.12.2
2024Mar8.73.02.1
2024Apr8.73.12.1
2024May8.43.02.1

Employment outflow slightly higher than inflow

Unemployment trends are the result of underlying flows between those in employment, the unemployed and those who are not part of the labour force. This is visualised in the chart below. The graph below the chart shows the changes in these different flows over the past few months.



Unemployment can increase or decrease due to four different changes in people’s circumstances. Two of these can lead to lower unemployment: when unemployed people find a job, and when unemployed people stop seeking employment and leave the labour market.

There are also two changes that can lead to higher unemployment: when people who have lost their job seek employment, and when people who were previously not part of the labour market start seeking employment. If people in these groups do not find work immediately, they become part of the unemployed labour force.

In the first months of 2024, unemployment grew mainly because more people outside the labour force were seeking employment, but did not find it immediately. That inflow into employment has since fallen again and more people have found a job, both unemployed people and job seekers from outside the labour force. This led to a net decrease in the unemployed labour force of 12 thousand over the past three months, or 4 thousand per month, on average.

Every month, CBS publishes figures on the labour force in accordance with guidelines of the International Labour Organization (ILO). The corresponding indicators, i.e. the employed and unemployed labour force, are used around the world to describe cyclical developments on the labour market. Monthly figures are essential in this respect. In addition, UWV issues its own monthly figures on unemployment benefits. Figures released by UWV do not correspond one-to-one with the labour force indicators.

Sources

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