Research & Data

Netherlands: Country Profile

True labour market exclusion across Europe — beyond the headline unemployment rate

Country Profile

Official Unemployment Rate
CBS / Eurostat, 2024 annual average
3.7%
2024
Broad Labour Market Slack
Eurostat lfsi_sla_a, 2024
8.2%
2024
Discouraged Workers
Not yet available
Involuntary Part-Time
Eurostat lfsa_etpga, 2023. Note: Netherlands has the highest part-time employment rate in OECD (~50%); involuntary share is smaller but material for women and young workers.
2.6%
2023
Disability Benefit Recipients
CBS / UWV — WIA (arbeidsongeschiktheid) recipients as % of 18–64 population, 2023
6.8%
2023
ALMP Participants
Not yet available
NEET Rate (15–29)
Eurostat edat_lfse_20, 2024 — lowest NEET rate in EU
5.3%
2024
Incarcerated per 100k
Council of Europe SPACE I 2024
67/100k
2024
Estimated True Exclusion Rate
Not yet available
Netherlands has one of the lowest NEET rates in Europe (5.3%) and relatively low labour market slack (8.2%). WIA disability benefit recipients have grown significantly since 2018. Part-time employment is culturally embedded; involuntary component is smaller than headline part-time rate suggests.

Who Is Really Excluded from the Labour Market?

1

Officially Unemployed

Persons without work who are actively seeking employment and available to start within two weeks. Measured by the ILO Labour Force Survey definition. This is the figure reported as the headline unemployment rate.

lfsa_urgan
2

Discouraged Workers

Persons available for work who have stopped actively seeking because they believe no suitable employment exists in their area or field. They want to work but have exited the official count. Captured in Eurostat's labour market slack measure as "persons not seeking but available."

lfsi_sla_a
3

Involuntary Part-Time

Persons working part-time who want to work more hours and are available to do so but cannot find full-time positions. Counted as employed in official statistics despite partial labour market attachment. Sometimes called underemployed part-time workers.

lfsa_etpga
4

Disability & Sickness Benefits

Working-age persons (typically 18–64) receiving disability pensions or long-term sickness benefits. The largest hidden group in most European countries. Not counted as unemployed. A substantial share retain capacity for work with appropriate support — particularly those with mental health diagnoses, now the majority of new grants in Nordic countries.

5

ALMP Participants

Persons participating in active labour market programmes — training schemes, subsidised employment, work assessment allowances. Classified as employed or inactive rather than unemployed, removing them from headline figures even when labour-market dependent. Effect on employment outcomes varies sharply by programme type.

lmp_ind_actsup
6

Early Exits (55–64)

Working-age persons aged 55–64 who have left the labour market before the statutory pension age — often via disability pathways, negotiated early retirement, or long-term unemployment transitioning to benefit receipt. Employment rates for this cohort are 20–30 percentage points below those for 50–54 year-olds in most European countries.

lfsa_ergaed
7

NEETs (15–29)

Young people aged 15–29 not in employment, education or training. Averaged 11.1% of the EU-27 age cohort in 2024, representing 12–13 million young people. Disabled young people are 40% more likely to be NEET. The 25–29 band (14.7%) drives the aggregate — many are not in transition but in sustained disengagement.

edat_lfse_20
8

Incarcerated (Working Age)

Working-age persons in prison. Smallest group in absolute terms (~509,000 EU-27 in 2024) but facing the most severe employer discrimination of any group post-release. Not counted in unemployment statistics. Source: Eurostat prison statistics and Council of Europe SPACE survey.

crim_pris_pop

In Practice

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