Unemployment is rising again due to the corona crisis – the number of unemployment benefits is rising sharply, especially among young people

Partly as a result of the corona crisis, unemployment rose to 3.6 percent of the Dutch labor force in May, compared to 3.4 percent a month earlier. In May, 16,000 people became unemployed, leaving the Netherlands with 330,000 unemployed last month. In the months of March, April and May, a total of 56,000 unemployed were added. The largest part, namely 38,000, was younger than 25 years. People are seen as unemployed if they indicate to samples that they have actively looked for a job in the previous weeks.

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According to the CBS figures, unemployment is now at the same level as at the beginning of 2019. According to a forecast by the Central Planning Bureau (CPB), unemployment will amount to 5 percent of the labor force this year on average and increase further to 7 percent in 2021.

The Central Bureau of Statistics (CBS) notes that the number of people with a paid job has fallen by 201,000 since March to 8.9 million. The number of benefits rose sharply, especially among young people

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Young people with a flexible employment contract are particularly hard hit by the crisis, the benefits agency UWV reports. In total, the agency paid out unemployment benefits to 301,000 people in the Netherlands in May, compared to 240,000 in February.

In May, the UWV awarded 42,000 new unemployment benefits. Because people also left, there were on balance nine thousand more unemployment benefits than in April, when the total number of unemployment benefits had already increased explosively.

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“Young people are often the first group to lose their job when employment shrinks. This is because they often work with a temporary contract,” says labor market expert Rob Witjes of the UWV. “On the other hand, young people are often the first to benefit when the labor market picks up again.”

The number of benefit recipients in the 15 to 25 age group has tripled in three months.

The strongest increase in the number of unemployment benefits was measured in the hotel and catering industry. In this sector there were more than 12 percent more unemployment benefits than a month earlier. In the cleaning sector, the retail trade and in the temporary employment sector, unemployment claims also rose sharply.

  • CPB is also counting on unequal recession and slow recovery: 6% contraction this year and 3% growth in 2021
  • Banks expect a tough second half of 2020
  • The Netherlands must prepare for a wave of bankruptcies – consumers and companies are keeping their budget.
Author: Jobly