27 January 2026
This article examines the driving forces behind the growth of the Dutch labor supply in recent decades and provides a forecast for the future using age-period-cohort models. Birth cohort effects - capturing both generational trends and policy changes - contribute most to the increased participation between 1997 and 2023, especially for women and older age groups. Changes in demographics due to immigration and shifts in household composition played only a limited role.
The forecast results indicate a strong slowdown in labor supply growth between 2025 and 2040 due to slower growth of the working-age population (15 to 75 years) and a flattening increase in female participation rates.
The analysis described in this article forms the basis for the estimate of the structural labor supply.
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