Demand for labour in the Netherlands jumped to a record number of 251,000 job vacancies at the end of June, an increase of 46,000 from last year, however there was a drop in the supply of labour leading to a tightening in the labour market, according to the UWV, the Dutch employee insurance agency.

The number of workers in the Netherlands increased by 200,000 over the year with 159,000 of these on a permanent contract. UWV added that due to solid economic growth employers are hiring more permanent staff.

Meanwhile, the number of temporary work hours continued to increase year-on-year to the period ending June.

Figures published earlier this month on temporary work hours showed that the total amount of hours worked by temporary workers in the Netherlands grew by 2% in the eighth period (weeks 29-32) of 2018, per data from the Dutch Federation of Private Employment Agencies.

UWV also noted that number of temporary staffing hours is growing almost continuously from November 2013. However, the growth in the number of temp jobs has been decreasing as in 2015, the growth was on average 10% compared to a year earlier. In 2016 growth was at 8% and in 2017 it was 6%. In the first half year of 2018 growth stood at 5% compared to the first half of 2017.

According to UWV, the fact that the number of temporary work hours continues to increase is also due to the fact that employment agencies are also being called on as a “recruitment channel” for regular jobs.

In terms of job vacancies, the largest increase in the vacancy rate compared to a year ago was found in the construction industry, which increased 43%.

Meanwhile, further data from UWV found that while unemployment is falling, the number of unemployment benefits is also decreasing. The number of people with short-term unemployment benefits decreased faster than the number of people with a long-term unemployment benefits. However, it added that for unemployed persons of 50 years and older, once they are unemployed they find it more difficult to work.

“There is a tight labor market,” UWV stated. “An increasing number of employers experience problems with finding suitable personnel. An increasing share of the working population is working in a professional group where the labour market is tight. Moreover, the shortage is expanding over an increasing number of labor market regions.”