The unemployment rate at 5.3% is at the lowest point in years. Not bad, but it is still much higher than before the crisis. In 2008, only 3.7% of the working population was unemployed.
Government Must Intervene
“The good news is that the number of vacancies is rising and that the economic recovery is going to increase the number of jobs”, says Tof Thissen, director of UWV division Werkbedrijf for RTL Z. “But at the end this will not save all the unemployed”.
According to Thissen, there are too many people without a job at home. He therefore advocates government interference, for example, by creating more jobs through subsidies. A sort of revival of “Melkertbaan 1.2” (A government action to subsidy long-term unemployed, introduced in 1994, and closed at 2004).
“You see that for certain groups (especially low-skilled, elderly and non-Western migrants) it is more difficult to enter in the labour market, despite the skills they have and the years they live in the Netherlands”, says Thissen. “Maybe because we did not all taker action together to show that we are an inclusive society. And thus also an inclusive labour market where people can participate with their abilities regardless of their origin, regardless of their age. We continue to believe that anyone will, in his or her own way, use their talents, ambitions and dreams”, says Thissen, who adds that the UWV will continue to fight to help the people who are receiving benefits for a job.
Is Melkertbaan 2.0 a Good Idea?
According to him, government assistance is needed. But does subsidizing work, now that the solution is for long-term unemployment?
Pieter Gautier, professor of macroeconomics and labour market at the Vrije Universiteit Amsterdam, thinks not. “We see that even long-term unemployment is currently diminishing, so it is actually very good with the labour market”, he says to RTL Z.
Longer-term unemployment among elderly and migrant workers, according to him, would benefit more from more flexible labour markets. “At the moment, many employers are reluctant to offer jobs to people. Non-Western migrants are statistically often discriminated. Often people from that group speak Dutch better than employers think. But because employers do not know, no one from that group is invited for a conversation”, says Gautier.
Easing Dismissal
He therefore advocates making it easier to get rid of people. This can, for example, be lowered by redundancy costs, or no longer obliging employers to pay two years for sickness.
And then the fixed jobs must become less fixed. He believes that the flexible jobs are already flexible enough.
“Then you are more likely to invite people to a conversation”, says Gautier. “These groups have much more than subsidized jobs, but still there is a bit of stigma”.
Source: https://www.rtlnieuws.nl