Actual Unemployment Rate in The Netherlands

By: Together Abroad 23-05-2017 12:49 PM
Categories: * Daily employment news,

‘Unemployment is declining again’, reported CBS this morning. But how are those numbers actually measured?

Unemployment has fallen by an average of 8,000 people per month in the past three months. The number of unemployed in April amounted to 456,000, which is 5.1% of the working population. At the same time, the number of employed people increased by an average of 9000 per month over the past three months, with 1,000 more than the number of unemployed.

How Do Those Numbers Compare

The CBS does not distinguish on two, but three so-called labour positions: the working population, the unemployed and the non-working population. Or: people with jobs, people without jobs and people who do not participate in the labour market.

Not everyone who is not part of the working population (working more than 1 hour per week) is automatically counted as unemployed. To do this you must meet two additional conditions: you must have been looking for work in the last two weeks and you have to be able to start immediately.

If you cannot or do not want to work, but are between the ages of 15 and 75, you fall among the non-working population.

Stream

To determine the unemployment figures, we must look at the flows between all three job categories. We begin with the flows between the working population and the unemployed population:

About 77,000 people have been unemployed in the past three months and 120,000 people found a job from an unemployed labour position. A positive difference of 43,000. But not everyone who loses his job becomes unemployed. People are retired or incapacitated, and so they end up in the non-working population.

Conversely, there are also people who enter the labour market immediately from the non-labour force. Students, for example, or reintegrating mothers. And these two groups are much larger.
 In the past three months, 190,000 people left the labour market and were no longer part of the workforce, while 175,000 people were newcomers. A negative difference of 15,000.

Finally, there are the people who move between the unemployed and the inactive labour force. These are the people who become discouraged, leaving their job search and labour force, and on the other side, there are people that may not go directly to work, but who see opportunities in the labour market.


Where 152,000 people left the labour force out of an unemployed position over the last three months, 171,000 saw new opportunities: they were unemployed from the non-labour force—those looking for work. A positive difference of 19,000.

In total, 346,000 people joined the workforce. These are the 171,000 new job seekers mentioned above and another 175,000 people who immediately found a job. And there were 342,000 taken from the working population. Thus, the labour force grew by 4000 people.


Source: https://www.rtlnieuws.nl

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