The Dutch labor market is one of the economic domains in the country that was hit by the global economic recession. In 2010 the Dutch labor market will continue to feel the crisis. Unemployment is expected to reach 8% a fact that will heavily influence the Dutch system. That is why the Dutch authorities continue unabatedly to invest in recovery measures in order to create the proper circumstances to emerge quickly from the crisis. Under this context in 2010 the government will invest €416 million in crisis measures. In order to cope with budget setbacks, there will means for saving €430 million of other expenditure. Taking into consideration these circumstances the government is aware that social difficulties will be created. Most probably people will lose their jobs, entrepreneurs will have to downsize their companies and citizens that are living on benefits will have fewer opportunities for getting a job.

Undoubtedly, this has an effect on the society and in the economy of the country as a whole. The aforementioned situation will create insecurity and uncertainty something that may have as an effect the further weaken of consumption. Consequently, an economical vicious circle will be created that will further effect the Dutch society. In order to prevent the negative effects of the aforementioned situation the Dutch government will also invest €320 million in 2011 in order to prevent jobs from disappearing unnecessarily and to make sure that businesses can quickly respond to any economic recovery by creating an environment that will enable the ‘labor fitness’ of the workforce. The situation in the labor market that the economic crisis created forced the Dutch authorities to understand that the economy can only survive long term if the flexibility and adaptability of the labor market are strengthened. Additionally, the authorities want to make sure that once the economy picks up it does not get stuck again because of lack of qualified manpower and a poorly functioning labor market; that is why they decided to make some structural changes in the labor market.

Under this context the government decided that for the duration of the crisis employers will have the option of giving to the younger generation below the age of 27, more temporary contracts and for longer periods. Also, it is proposed to exempt the employers from paying contributions and taxes for employees in short-term employment up to the age of 23. It is expected that with these measures will encourage employers to employ more often from the younger generation.



Additionally, it was decided that a mutual training obligation will be established. In doing so employers and employees will invest in the deployability of employees in a more committed way and therefore a better trained and flexible workforce will be created.