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• Foreword and acknowledgements

  This review of the Netherlands’ labour migration policy is the seventh of a series conducted by the OECD Secretariat as a follow-up to the 2009 High Level Policy Forum on International Migration. The rationale for this initiative was the recent growth in labour migration observed in many countries and the likelihood that recourse to labour migration would increase in the context of demographic ageing. Prior to the 2008-09 economic crisis, many countries had made substantial changes to labour migration policies with a view to facilitating recruitment from abroad. With the introduction of these changes, more prominence was accorded to the question of their effectiveness and more broadly, to the objectives of labour migration policy in general. Although the economic crisis put a damper on labour migration movements, it did not stop them entirely, and interest in labour migration policy is unlikely to diminish in the near future.

• Acronyms and abbreviations
• Executive summary

  Based on a characterisation of labour migration to the Netherlands and of the Dutch labour migration policy, this review examines whether labour migrants match the demand in the Netherlands and explores how the Netherlands can attract and retain highly skilled migrants. Labour migration from non-EU countries to the Netherlands has been higher in recent years than prior to 2007 but remains low in comparison to other categories of migration. In 2013, it accounted for only 9% of the total permanent migration inflow of 100 000 persons. This share was higher than in Germany and France but below the average for European OECD countries. Inflows through free movement within the European Union accounted for more than 60% of permanent migrant flows to the Netherlands. Migrants from EU countries, especially in Central and Eastern Europe, are also the main source of temporary migrants, whose total level approached 200 000 in 2012.

• Assessment and recommendations

  During 2010-13, permanent migrant inflows to the Netherlands were stable at around 100 000 persons annually, but these levels substantially exceeded inflows in previous years. The growth was driven by a strong rise in migrant inflows based on free movement within the European Union and the European Free Trade Association (EFTA), from 19 000 in 2003 to 65 000 in 2013. Among migrants from countries outside the EU and EFTA, around 20 000 family migrants made up the largest group throughout recent years. Total net migration inflows had fallen below 20 000 in 2012 and 2013 but rose again to 37 000 in 2014.

• Context for labour migration to the Netherlands

  This chapter discusses developments in the Netherlands that have implications for the scope and scale of labour migration. Heterogeneous labour market conditions and recent contributions of migrants to employment growth are documented. The chapter argues that structural change in the Dutch economy, a trend towards higher skills and labour supply forecasts all suggest a role for targeted labour migration at both high and medium-skill levels. Labour migration could be complementary in the adjustment of the Dutch labour market because the supply of skilled labour from domestic sources has tended to increase slowly and will eventually be affected by population ageing.

• Evolution and characteristics of labour migrationto the Netherlands

  This chapter presents a detailed profile of labour migration to the Netherlands in recent years. It discusses the share of labour migrants among total migration inflows in recent years and examines the composition of both permanent and temporary labour migration flows. Special attention is given throughout to differences between labour migrants from within the European Union and those from non-EU countries. The stocks of labour migrants and international students are characterised. The chapter concludes with an overview of labour migrants’ outcomes in the Dutch labour market, including an assessment of effects from the financial crisis in 2007/08.

• The Dutch labour migration policy

  This chapter presents the migration policies applied in the Netherlands to labour migrants who are not citizens of EU/EFTA countries. Recent changes to programmes for permanent labour migration, administrative procedures and the role of employers are discussed in detail. Based on quantitative evidence such as numbers of residence and work permits, processing times, and violations of employment laws for migrants, the chapter assesses the efficiency of the Dutch labour migration system and derives recommendations for improvements.

• Matching labour migrants with labour demand in the Dutch economy

  This chapter examines three aspects of matching labour migrants with labour demand in the Netherlands: how is the selection of highly skilled labour migrants affected by the use of salary thresholds in the knowledge migrant programme? Is the Dutch top sector approach reflected in the distribution of migrants over sectors? Have regions in the periphery of the Netherlands attracted their fair share of labour migrants? Most analyses in this chapter include EU/EFTA as well as non-EU/EFTA migrants, but particular attention is given to highly skilled migrants.

• Attracting and retaining skilled migrants and international students in the Netherlands

  The chapter draws on a number of indicators to gauge the position of the Netherlands in the context of global competition for skilled migrants and talent. Possible issues in the retention of knowledge migrants and international students are highlighted. Econometric analyses estimate the retention rates of highly educated migrants and graduates of Dutch universities and analyse their determinants. Special attention is paid to the effect of partners’ employment on the retention of knowledge migrants, and the effect of combining work and studies on the retention of international students.

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