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Youth employment and unemployment in the Netherlands

Youth employment and unemployment in the Netherlands. Vilnius, 11 November 2013 Brigitte van der Burg. Outline. ‘The Dutch economy’ and employment situation Policy framework Education Labour market and social security Initiatives on youth unemployment.

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Youth employment and unemployment in the Netherlands

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  1. Youth employment and unemployment in the Netherlands Vilnius, 11 November 2013 Brigitte van der Burg

  2. Outline • ‘The Dutch economy’ and employment situation • Policy framework • Education • Labour market andsocial security • Initiatives on youthunemployment

  3. 1. The Netherlands (key statistics) Population: 16.715 million Density: 404,5/km² GDP: € 537.192.383 GDP per capita: € 32.139

  4. The Netherlands at a glance: the economy Food processing, chemicals, petroleum refining and electrical machinery

  5. Youth unemployment is relatively low Youth unemployment (under25 years), June 2013 (or latest available) Source: Eurostat

  6. Youthunemploymentin The Netherlands (January 2003 – September 2013) Youth unemployment (ILO-definition) Source: Centraal Bureau voor de Statistiek

  7. 2. Policy framework How the systems contributetoyouthemployment in The Netherlands. 1.Education VocationalEducationand Training (VET) Earlyschool leavers 2.Labour market policiesandsocial security Labour market andinstitutions Activatingsocial security Minimum wages

  8. The importance of anearlylabour market debut “A key factor behind the successful labour market performance is the early labour market debut for many young people, facilitating later transition into full time position and permanent contracts” Source: OECD (2012), EconomicSurveys The Netherlands  Apprenticeships as a vital element in the Dutch educational system

  9. VocationalEducation & Training (VET) in the Netherlands

  10. Drop outs and early school leaving • Labour market perspectives of qualified school-leavers are muchbetterthanthose of unqualified school-leavers; • Therefore, policies focus on reducing the number of early school-leavers; • Objective: the number of new early school-leavers must bereducedto 25.000 in 2016.

  11. Reduction of the number of early school-leavers Achievement 2011: 38.600 (2,9%) New dropouts: Target and achievement Source: Ministry of Education, Culture and Sciences, Key figures 2007 - 2011

  12. 2. Policy framework How the systems contributetoyouthemployment in The Netherlands. 1.Education VocationalEducationand Training (VET) Early school leavers 2.Labour market policiesandsocial security Labour market andinstitutions Activatingsocial security Minimum wages

  13. Well functioninglabourmarkets offer opportunitiesforall ‘The well performinglabour market has delivered low unemploymentandrelativelystablewagedevelopments.’ Source: OECD (2012), EconomicSurveys The Netherlands • The dutchlabour market performs well, alsoforyoungpeople: • Relatively low youthunemploymentand high youthemployment • Flexiblecontracts as screening mechanismforemployersand ‘steppingstone’

  14. Activatingsocial security Social security = safety net with a strong focus on activation and personal responsibility. Social security for young people (special regime < 27 years) If young people want to qualify for benefits: • They have to search actively during 4 weeks for a job or education before they can apply • Reintegration into the labor market is decentralized to municipalities. If young people apply for benefits, municipalities and unemployed young people make a proposal for reintegration • Municipalities cooperate with among others the public employment service, educational institutions, employers and health care providers

  15. Minimum wages affect employment probabilities Average minimum youth wage as a percentage of adult minimum wage Source: OECD (2008), Jobs for youth Thereseemstobe a causalrelationbetween the relatively low minimum wagesandrelativegoodlabour market outcomes in The Netherlands (CPB, 2012).

  16. Minimum (youth)wages in the Netherlands Gross monthly minimum (youth) wages by age, 1 July 2013 Source: Ministry of Social Affairs and Employment

  17. 3.Specific initiatives

  18. A multidisciplinary approach • Additional budget forlabour market regions, forspecificanddedicatedactivities • Co-financingforsectoralplansbysocial partners (possibility of ESF) • School-Ex programmetostimulate students in secondary VET to stay longer in education and choose labour market relevant school curricula

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