Policy Options for Labour Market Challenges in Amsterdam and Other Dutch Cities

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EU Funded Note

Labour markets across the Netherlands recovered quickly from the COVID-19 shock and Dutch cities are now facing an unprecedented level of labour market tightness. The high demand for workers presents a unique opportunity for Dutch municipalities to find pathways into employment for those with the lowest labour market attachment and alleviate the pressure faced by local employers that struggle to find suitable workers. Supporting the diverse population in Dutch cities in finding their way into the labour market requires the efficient use of existing labour market instruments, advancing innovative methods of skills-based job matching and improving the cooperation between national, regional and local labour market institutions. This OECD report analyses current and future bottlenecks that could hamper the effective provision of local labour market services. It highlights policy options for strengthening the capacity of municipalities to support different population groups in making the transition from social welfare recipients to workers.


Adapting to the future of work in Amsterdam

This chapter analyses the main future trends, challenges, and opportunities for the labour market in Amsterdam. It focuses on seven dimensions: the consequences of the increasing digitalisation for the labour market; the automation of production processes and its effect on labour demand; job polarisation and labour market mismatches by education; the ageing society and its effect on labour supply; the rise of non-standard work; and the transition to a low-carbon economy. In doing so, the chapter benchmarks Amsterdam against selected comparable metropolitan areas across OECD countries and other regions in the Netherlands, with a particular focus on the other G4 cities (Rotterdam, The Hague and Utrecht). The analysis shows that policymakers in Amsterdam should pay close attention to challenges pertaining to self-employment, the high retirement rates among workers in occupations that require vocational education, and the high incidence of part-time work.


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