Foreword

Although unemployment rose to 6.5% in the Netherlands in the wake of the COVID-19 shock, the labour market quickly returned to pre-pandemic levels. Amsterdam and the Netherlands are now facing an unprecedented level of labour market tightness. In the first quarter of 2022, 19 of the 35 regions in the Netherlands reported more than four job vacancies for every short-term unemployed. Amsterdam experienced an even larger shortage of workers with only one short-term unemployed worker available for every six job openings.

Tight labour markets provide opportunities for municipalities in the Netherlands, to address long-term unemployment and assist the economically inactive into the labour market, including through stronger engagement with employers. However, to deliver on these goals, municipalities require adequate funding from the national government, as well as an improved, and detailed, understanding of the local population. At the same time, the increasing engagement of municipalities in preventing job losses and the facilitation of work-to-work transitions raises further important questions on their role in the national and local adult learning system.

This OECD report examines local labour market opportunities and challenges in Amsterdam and other large cities in the Netherlands. It analyses the functioning of national, regional and local labour market institutions in the Netherlands and discusses potential bottlenecks that could hamper the effective provision of local labour market services. It further highlights policy options for strengthening the capacity of municipalities to support vulnerable population groups in making the transition from social welfare recipients to workers. The report also discusses the role of municipalities in the Netherlands’ adult learning system.

This OECD report is part of the series of OECD Reviews on Local Job Creation within the Programme of Work of the OECD Local Employment and Economic Development (LEED) Programme. Created in 1982, the LEED Programme aims to contribute to the creation of more and better jobs for more productive and inclusive economies. It produces guidance to make the implementation of national policies more effective at the local level, and to stimulate innovative local practices that can be scaled up. The OECD LEED Directing Committee, which gathers governments of OECD member and non-member countries, oversees the work of the LEED Programme.