Dutch labour market not sustainable

By: Together Abroad 26-10-2015 11:47 AM
Categories: * Daily employment news,

Research done by Utrecht University  shows that The Netherlands does not have a sustainable labour market. The study showed that this is caused by both the over- and under-utilisation of talent. In addition to this, working staff in The Netherlands have relatively few work hours compared to the expected productivity of their labour.

The study has shown that this stems from the preferential treatment of 'insiders' against 'outsiders' in the labour market. This is then expressed as under- and over-utilisation of talent.

The under-utilisation of talent comes from many women who are still being placed in lower positions than men relative to their experience and skills. This also includes the elderly, the disabled and immigrants, who are banded as 'outsiders'.

In particular, the elderly are facing increasingly fewer opportunities in the labour market. When employers are looking to hire, they tend to look for people with a higher labour productivity and knowledge that complements the demands of the market. Employers are not prepared to take the risk to hire those who might not meet their high expectations.

Conversely, over-utilisation of talent stems from the reliance of 'insiders', where employees' are over-worked. When an employee has too much expected of them and not enough time to deliver results, their work is rushed and companies tend to see an increase in dissatisfied customers. As such, the higher working stress leads to less productive employees.

According to the researchers, this gap is decreasing over time, and will be reduced significantly in the near future.

Source: Utrecht University

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