Minister van Hijum of Social Affairs and Employment: “I am very pleased that the research is now available. The Netherlands is addicted to low-paid labor. Companies are bringing in cheap labor migrants on a large scale, who often have to work and live in deplorable conditions. That business model is not the future of the Netherlands. The costs are not only borne by these labor migrants but also by society. This must really change. This report shows that the current scale of labor migration is unsustainable and provides concrete policy options for politics. We are already well on our way with our approach and will look at how we can further strengthen that approach based on this advice.”

Population Growth

According to CBS figures, in recent years an average of 40,000 more labor migrants have come to the Netherlands than have left. Since many labor migrants are not included in these figures, for example because they are seconded from another EU country, the actual figure is even higher. To reach a population of 19 to 20 million by 2050, the State Commission on Demography recommended a growth of 40,000 to 68,000 migrants per year. This number is thus already achieved solely by the number of labor migrants, while there are also migrants coming to the Netherlands for asylum, study, or family.

Labor Market and Industry Policy

In recent years, the number of low-paid jobs has grown three times faster than the number of other jobs. And this is while the Dutch are becoming increasingly well-educated. Additionally, the Dutch labor market is very flexible compared to other countries. Labor migrants are increasingly doing the low-paid work in the Netherlands. Almost half of EU labor migrants have a temporary contract. They mainly work in logistics, (glass) horticulture, the meat sector, and the metal industry. Some sectors – such as (glass) horticulture or parts of agriculture – benefit from subsidies that lower production costs and increase demand. Together, this promotes the demand for labor migration.

Building Blocks

The IBO provides five building blocks with concrete policy options to manage the scale, composition, and conditions of labor migration in the Netherlands. The goal is to allow fewer people to come to the Netherlands and to ensure that those who do come are primarily employed in high-quality jobs. According to the report, all the different building blocks are necessary for an effective approach.

First, there must be less demand for low-paid labor by increasing the quality and price of labor. This could involve raising the minimum wage, making temporary work less flexible, and instituting a ban on temporary work in high-risk sectors. Labor migration should also be more focused on the major societal transitions that the Netherlands is facing. Labor migrants in such jobs can temporarily alleviate labor market shortages and contribute to achieving a high-quality economy.

Furthermore, the report advises more conscious choices in supporting certain sectors. For example, by phasing out fiscal subsidies for sectors that employ many labor migrants. The societal costs of labor migration must also be reduced and shared more equitably by addressing abuses and improving housing and education for labor migrants and their children. Employers should contribute to these costs wherever possible.

Finally, more knowledge and data must be gathered regarding labor migration. This requires improving the registration of labor migrants in the Netherlands. Not every labor migrant is currently accounted for. There are also no forecasts for labor migration.

Follow-up

The Minister of Social Affairs and Employment will carefully manage the IBO. After the summer, the cabinet also expects advice on labor migration from the SER.