The Dutch economy is still among the most productive in the world, but growth is stagnating. In the past 10 years, productivity has only increased by 0.4% per year, while it used to be 1.5%. This has significant consequences for our prosperity. If productivity had continued to grow at a high rate, it would have generated an additional €100 billion for us collectively. That is 5 times what we spend annually on defense in the Netherlands, and nearly 2 times what we spend on education. Moreover, our population is aging. We cannot rely on many more extra working hours. Without measures, waiting times in healthcare, the quality of education, and our safety will increasingly come under pressure.
Minister Karremans (Economic Affairs) presented the productivity agenda today during a working visit in Nieuwegein: “We need to earn more money with fewer people, so our productivity must increase. Our hospitals and schools were built thanks to the productivity of previous generations. If we want to maintain good healthcare and education, we must ensure that companies and institutions can work smarter and innovate now.”
Measures
The agenda includes measures in 5 areas that must ensure more productivity:
- Digitalization and innovation
By helping SMEs work digitally and building a Dutch AI factory, companies can execute processes faster, cheaper, and smarter. This saves time and costs. - Competition and fewer regulations
Simpler and better-aligned regulations, such as standardized labels in Europe, reduce administrative burdens. This allows companies to focus more on their core activities. - Financing for companies
Access to credit makes it easier for SMEs to invest in innovation and growth. Employee participation and better support for researchers stimulate entrepreneurship and innovation, allowing new ideas to reach the market faster. - Education and lifelong learning
Stronger basic skills and a personal learning and development budget ensure that people are better prepared for changes in their work. Well-educated employees can work more efficiently and apply new technologies faster. - Labor market
Less uncertainty around sick pay reduces risks for entrepreneurs. This makes it more attractive to hire people and contributes to a dynamic and productive labor market.
New Productivity Council
To monitor progress, the cabinet is establishing a Productivity Council. This council will provide concrete advice each year to make the Netherlands more productive and thus more prosperous.
With these measures, the cabinet aims to ensure that the Dutch economy remains strong and that we can continue to afford our services in the future.